Mortgage rates in Canada have been at historic lows for quite a while now. This helps to fuel the recovery of the Canadian economy, according to some pundits. During the first 4 months of 2010, housing sales in Canada rose dramatically, with increases in both the average selling price and the number of homes sold. The next four months over the summer were somewhat softer.

The real estate market is now becoming more unbalanced. There is decreased inventory tempered by increased demand. The Canadian government is trying to tighten the rules to qualify for a mortgage, which caused several buyers to jump into the real estate market before the new rules went into effect. The HST tax which went into effect July 1st caused buyers in Mississauga, Ontario, and British Columbia to rush to buy homes. Pent-up demand from the recent economic recession also spurred home sales. Would be helpful to ask about the home equity chip program as well.

Interest rates have come off their historic lows, but are still relatively low. All of the major banks in Canada are forecasting that interest rates will rise over the next 18 months. While forecasts differ as to the exact amount of an increase in mortgage rates, the consensus seems to be, that the overnight lending rate will be between 2.5% and 3.5% by the end of 2011. Fixed interest rates are also expected to rise since they are tied to bond yields. By the end of 2011, borrowers with a great credit score may be looking at a five-year fixed rate of 5.36%.

What does that mean for the home shopper in 2021? It means that the next few months are a great time to buy in Mississauga, Ontario, and other parts of Canada. With house prices stabilizing and more homes to choose from, there are undoubtedly homes that will be great buys. Interest rates are still very affordable despite being up slightly from their lowest points. By locking in a fixed rate for a five-year mortgage, buyers can be secure with low monthly payments as variable interest rates begin to rise.

Recently, home prices have softened from overheated conditions in the Spring while interest rates remain near record lows. Even the five-year fixed rate is having trouble maintaining an ascent and instead seems to be coming back down a bit. Housing inventory in Canada is not keeping pace with the higher demand as many sellers either pulled their homes back off of the market or was not eagerly listing homes at lower prices. As a result, good deals can be found right now with the benefit of very low mortgage rates making it enticing to buy.

The hot real estate market in Canada last Spring has given way to a more sanguine market today. This means buyers and sellers are closer to an equilibrium that is neither forcing prices up nor causing them to fall. The current real estate market allows qualified buyer to take their time finding the right home and a willing seller to get a fair price. Because interest rates remain near historic lows, whether you choose a five-year fixed mortgage rate or a five-year variable rate, the interest cost of home ownership will remain near record lows.

Where Canadian housing prices head from here is not certain, but the low-interest environment coupled with softer home prices makes home-buying more affordable for those considering a home purchase.

A good mortgage broker in Mississauga, Ontario should be someone that helps you navigate the market, not complicate your perspective. Here are seven tips on finding a good broker.

1. Shop around. You are entering into a business relationship. Just as you would research other professional services, don’t hesitate to talk to several mortgage brokers. This is the best way to get to know them and the packages they offer. Simply tell them that you are researching so it is clear that you are not yet committed.
2. Access your credit records. Before embarking on a meeting with various brokers, pull your credit report. This means that your credit score will not be accessed several times by different brokers. Accessing your credit report multiple times can weaken your credit history.
3. Be sure they are certified. Mortgage brokers need to write qualifying exams that, in turn, certify them as a broker. Certification varies across countries and provinces. Do your research to ensure that any broker you take the time to meet has met the legal requirements to call him/herself a mortgage broker.
4. Know both the broker and their company. Mortgage brokers can work independently, or they represent a company. Sometimes, brokers may even represent a bank. Investigate their background so that you can be sure you are offered a package that is right for you versus a product that their company or bank is trying to sell.
5. Find out how the broker earns their money. Upfront, ask the broker to show you how they are paid. This way, you have an understanding of all the transactions that they help you with. Be wary of brokers who require you to provide money upfront.
6. Debate their method. Do not be afraid to discuss the method that the broker uses to make a recommendation. Mortgage brokers will make a commission on certain products and may encourage you in this direction. Understanding their formula will help you uncover a broker who is working in your best interest.
7. Seek out those who want to learn more about you. Just as a doctor would not make a diagnosis until he or she understood your condition and all your symptoms, mortgage brokers should have a clear idea about your situation. Be wary of a broker who is keen to offer you loan packages right away. Ideally, they should be fully apprised of your goals and circumstances before seeking out a mortgage that best suits you.
8. Put them on the spot. When you are interviewing brokers, do not be afraid to ask them questions on what sorts of packages are currently available or will be in the future. A good broker should be up-to-date on current packages and rates. They should also have a finger on the pulse of what institutions might be offering in the future.

There are good mortgage brokers in Mississauga, Ontario and there are incompetent and untrustworthy ones. Following these tips and doing a little research will help you find a broker that will work for you.

Not so long ago, it was only banks and some financial institutions that could offer mortgages to interested clients. However, looking for a mortgage is now easier with the help of a mortgage broker who will help clients to find the right mortgage that will meet their needs. Since the broker is not employed by the bank or by a certain lender, the mortgage broker will not be influenced by any lender and there will be no biases when it comes to choosing the right mortgage for the client. Mortgage brokers have a lot of duties and responsibilities. Some of the duties of a mortgage broker would include the following:

Understanding clients’ finance needs.

A mortgage broker Mississauga should be able to carefully assess the financial background and history of the client so that it will be easier to trim down the choices for mortgage offers and eliminate those that do not meet the client’s requirements. While the broker is in the process of assessing the financial background of the client, a credit report of the client is needed. This is because the credit report, which has the credit ratings of the client, will determine the mortgage interest rates.

Finding the most suitable mortgage for a client from various mortgage offers available in the mortgage market is critical part of the job. Assisting the applicant during the pre-approval stage of application for the mortgage is also important. The pre-approval stage of application for a mortgage is the most stressful stage for applicants but with the help of a broker, this stage won’t be too stressful because the broker will ensure that the applicant will be able to pass this stage based on sound honest advice.

Gathering all of the documents that are needed for the application process from the applicant is the next stage of the process. These documents are very important because the application will not be processed without the essential documents submitted to the lender in a timely manner. Helping the applicant in filling up the form for application of a mortgage can be tedious, in the event the mortgagor is not truthful in their responses. Filling up the application can be difficult for applicants especially if they do not know how to fill it up properly or with honest intentions. Errors can be avoided and the application form will be processed immediately and submitted to the right lenders once the form is filled up and reviewed by the broker.

Brokers also ensure that all of the documents and the application form will be submitted to the mortgage provider under the strictest of confidence. The mortgage broker provides all the information about the mortgage to the applicant in writing, inclusive of interest rate and borrowing terms to review. These documents will include all the legal information that the applicant should be aware of. The mortgage broker should make sure that the applicant understands the terms and conditions of the mortgage and if there are any problems, the applicant can always ask questions to the broker. All of these duties, not limited to what has been described in this article are just a fraction of what a great mortgage broker offers his clients who are seeking the best mortgage or refinance.