When you\’re shopping around for a mortgage in Canada, be it for a first mortgage, second mortgage or home refinancing loan of some kind, there are several things that you should do in order to ensure that you end up paying the lowest rates available and getting the best terms you can get.

Mortgage rate comparison shopping is actually not difficult at all, it just takes a little knowledge and a willingness to take the time to find the best deal. Here are some tips that can help to simplify the process.

If part of your down payment comes from your parents or other trusted relative or friend, it can help to dramatically reduce the amount of interest that you will end up paying on the mortgage in the long run. However, you may have to send a note to the bank explaining that the money is a gift and not an additional loan in order to avoid any potential complications from the lender.

Be sure to ask all of the lenders in the mortgage rate comparison process for a \’Good Faith Estimate\’. This is an estimate of all of the fees that you will need to pay in order to move forward. At the same time, understand that this is only an estimate and that the final numbers could be higher as many of these fees are determined by third parties other than the bank or lending institution itself.

There is, of course, no such thing as a free loan. You can either pay a higher rate with lower points, or lower rates with higher points. Make sure that you thoroughly investigate the mortgage lenders and the terms they are offering in order to determine which options will make the most sense for your situation.

In most cases, you should not have to pay more than 1 or 1.5 points above prime, but there are cases where you may have to pay 2 or more, but if the points are high, try to make sure that you are getting a great deal on the interest rate you are paying in return.

Always take the time to shop around for the lowest interest rates available. There are several online marketplaces that you can take advantage of in order to find this information. (Simply use your favorite search engine for phrases like: \’compare mortgage quotes\’. Be sure to take advantage of this opportunity in order to find a loan that fits your budget and won\’t take you forever to pay off.

It is possible to compare loans based on an annual percentage rate that combines the cost of interest rates, points, and other fees, allowing you to make realistic comparisons.

The point is, try to perform all of the due diligence tasks you can, just like you do when you choose a life partner. Sure there are some uncontrollable factors but you had a good idea of what you wanted in a partner, and similarly, what you didn\’t want. Getting a mortgage is like a marriage to debt, so make sure you\’re happy before you make that commitment. Unlike a marriage however, the good news is that mortgages usually have a 5 or 10 year term where at the end of the term, you can renegotiate your loan. I know what you’re thinking, ‘if only’, right?

Albert Einstein once said, ‘If we knew what it was we were doing, it wouldn\’t be called research, would it’?

Do your research. Choose wisely. Live happier.

Jeffrey Wells is a contributing writer for Kanetix.ca, a website which compares prices on a wide range of financial products including mortgages (The BEST mortgage rates!), insurance and credit cards, with a wealth of information to help visitors find the best products for their needs in a highly secure environment. Fast, Friendly & Easy-to-Use. Visit them today!

Jeffrey Wells is a contributing writer for http://www.kanetix.ca – A website which compares prices on a range of financial products including mortgages, insurance and credit cards, with a wealth of information to help visitors choose the best products for their needs in a secure environment.

Author Bio: Jeffrey Wells is a contributing writer for Kanetix.ca, a website which compares prices on a wide range of financial products including mortgages (The BEST mortgage rates!), insurance and credit cards, with a wealth of information to help visitors find the best products for their needs in a highly secure environment. Fast, Friendly & Easy-to-Use. Visit them today!

Category: Home Management
Keywords: mortgage quotes,compare mortgage rates,mortgage shopping