Best True North Mortgage Rates
Now, let’s explore the current True North Mortgage rates and how they compare to other lenders in the market.
Current True North Mortgage rates
| Term | Rate |
|---|---|
| 6 Month Fixed (Rate Relief) | 3.99% |
| 1 Year Fixed (Rate Relief) | 4.99% |
| 2 Year Fixed (Rate Relief) | 5.99% |
| 3 Year Fixed | 4.84% |
| 4 Year Fixed | 5.34% |
| 5 Year Fixed | 4.84% |
| 5 Year Open | 6.70% |
| 5 Year Variable | 5.99% |
True North Mortgage’s Rate Relief products offer short-term lower rates for up to a year, providing borrowers with some breathing room in their budgets to cope with closing costs, home expenses, and other financial obligations.
When it comes to purchasing a home, one of the most crucial factors to consider is securing the best mortgage rates. Even a slight difference in interest rates can result in significant savings over the life of your loan. This is where True North Mortgage comes in, offering Canadians access to the most competitive mortgage rates in the market. By leveraging their extensive network of lenders and their high volume of transactions, True North Mortgage can negotiate better rates and pass those savings on to you.
Understanding Mortgage Rates
Before we dive into the specifics of True North Mortgage rates, let’s take a moment to understand what mortgage rates are and the factors that influence them.
What are mortgage rates?
Mortgage rates refer to the interest rate charged by a lender on a home loan. This rate determines the amount of interest you’ll pay over the life of your mortgage, in addition to the principal amount borrowed. The lower the mortgage rate, the less you’ll pay in interest charges, potentially saving you thousands of dollars over the term of your loan.
Factors that influence mortgage rates
Several factors can impact mortgage rates, including:
- Economic conditions: The overall health of the economy, including GDP growth, employment rates, and consumer spending, can influence mortgage rates. In times of economic growth and stability, mortgage rates tend to be lower, while periods of economic uncertainty or recession can lead to higher rates.
- Inflation: Higher inflation rates often lead to higher mortgage rates, as lenders aim to maintain their purchasing power. When inflation is high, the value of money decreases over time, so lenders need to charge higher interest rates to compensate for this erosion in purchasing power.
- Bond market: Mortgage rates are closely tied to the bond market, particularly the 10-year government bond yields. When bond yields rise, mortgage rates typically follow suit, as lenders need to offer higher returns to investors to make their mortgage-backed securities more attractive.
- Central bank policies: The Bank of Canada’s monetary policy decisions, such as setting the overnight lending rate, can affect mortgage rates. When the central bank raises interest rates, it becomes more expensive for lenders to borrow money, which can lead to higher mortgage rates for consumers.
Fixed vs. variable mortgage rates
Borrowers can choose between fixed and variable mortgage rates:
- Fixed rates remain constant throughout the term of the mortgage, offering stability and predictability in monthly payments. This can be beneficial for homeowners who prefer a consistent budget and want to avoid potential rate fluctuations.
- Variable rates fluctuate based on market conditions, potentially resulting in lower initial rates but less predictability in monthly payments. Variable rates can be advantageous when interest rates are expected to remain stable or decrease over time, as you’ll benefit from lower payments during that period.
Open vs. closed mortgages
Mortgages can also be classified as open or closed:
- Open mortgages allow for more flexibility in making prepayments or paying off the mortgage early without penalties. This can be useful for homeowners who expect to receive large sums of money (e.g., inheritance, bonus) or plan to sell their home within a few years.
- Closed mortgages typically offer lower interest rates but come with restrictions on prepayments and early payoffs. If you need to break a closed mortgage before the end of the term, you may be subject to significant penalties.
How True North Mortgage rates compare to other lenders
True North Mortgage consistently offers some of the lowest mortgage rates in Canada. By working with a wide range of lenders and leveraging their high volume of mortgage transactions, they can secure rates that are often lower than what individual borrowers can access directly through banks or other financial institutions.
For example, let’s compare True North Mortgage’s 5-year fixed rate of 4.84% to the rates offered by some major Canadian banks:
- Bank A: 5.14%
- Bank B: 5.19%
- Bank C: 5.09%
As you can see, True North Mortgage’s rate is significantly lower, which can translate to substantial savings over the life of your mortgage.
True North Mortgage’s volume discount advantage
One of the key reasons True North Mortgage can offer such competitive rates is their volume discount advantage. As one of Canada’s largest mortgage brokerages, they have the ability to negotiate better rates with lenders based on the sheer volume of mortgages they facilitate.
Lenders are often willing to offer discounted rates to True North Mortgage because of the high volume of business they bring, allowing True North Mortgage to pass those savings on to their clients.
Benefits of Choosing True North Mortgage
Opting for a mortgage through True North Mortgage comes with several advantages:
- Access to the lowest mortgage rates in Canada: True North Mortgage’s strong relationships with lenders and volume discount advantage ensure that you have access to the most competitive rates available.
- Flexible mortgage solutions for complex situations: Whether you have a straightforward mortgage application or a more complex one, True North Mortgage’s experienced brokers can find a solution that fits your unique needs. This includes situations such as self-employment, poor credit, or non-traditional income sources.
- Unbiased, expert advice from highly trained brokers: True North Mortgage’s brokers are salaried, not commissioned, ensuring that they provide unbiased advice focused on your best interests. They are highly trained and knowledgeable about the mortgage industry, allowing them to guide you through the process and help you make informed decisions.
- No cost and no obligation for their services: There’s no charge for True North Mortgage’s services, and you’re under no obligation to proceed with a mortgage if you’re not satisfied with the options presented.
- Convenient application process: You can apply for a mortgage online, in-store, or over the phone, making the process as convenient as possible. True North Mortgage has a network of physical locations across Canada, as well as a user-friendly online platform.
- Multilingual support: True North Mortgage offers support in multiple languages, ensuring that you can communicate effectively with your broker, regardless of your preferred language.
How to Qualify for the Best True North Mortgage Rates
To secure the best mortgage rates through True North Mortgage, there are a few factors that come into play:
Factors that affect rate qualification
- Credit score: A higher credit score generally translates to better mortgage rates, as it demonstrates your financial responsibility and lower risk to lenders. Lenders typically prefer credit scores of 680 or higher for the most favorable rates.
- Home equity: The more equity you have in your home (i.e., the larger your down payment), the more favorable your mortgage rate may be. Lenders view borrowers with higher equity as lower risk, as they have more skin in the game.
- Other Canadian regulations: There are various mortgage regulations in Canada, such as stress tests and loan-to-value ratio requirements, that can impact your ability to qualify for certain rates. These regulations are designed to ensure that borrowers can afford their mortgage payments, even in the event of interest rate increases or changes in their financial situation.
Tips to improve your chances of getting the best rates
- Maintain a good credit score by paying bills on time, keeping credit card balances low, and managing debt responsibly.
- Save for a larger down payment to increase your home equity and demonstrate your financial commitment to the lender.
- Shop around and compare rates from multiple lenders to ensure you’re getting the best deal. True North Mortgage can help you compare rates from various lenders in their network.
- Consider a shorter mortgage term for lower rates, if you can afford the higher monthly payments. Shorter terms typically have lower interest rates than longer terms.
- Provide documentation to support your income, employment, and overall financial situation. Lenders will want to verify that you can comfortably afford the mortgage payments.
True North Mortgage’s Track Record
With over 17 years of experience in the mortgage industry, True North Mortgage has a proven track record of success:
- They have arranged more than $20 billion in mortgages for Canadians across the country.
- They have the highest number of 5-star reviews in the industry, a testament to their exceptional customer service and commitment to client satisfaction.
- Their clients consistently praise their exceptional service, knowledge, and ability to secure the best mortgage rates.
“Kelly is the best in the business. This is my second time dealing with her as she got me my initial mortgage and then helped me with my first renewal. She is so professional, knowledgeable and her customer service is second to none. Going with True North was the best financial decision I ever made.” – Shelly from PEI, September 2023
“What an unbelievable company to work with. Jacky and his team were completely transparent and detail-oriented with everything. They get things done lightning-quick and are on top of it every step of the way. Absolutely a top-notch company.” – Matin from BC, January 2024
True North Mortgage’s success is built on their commitment to providing exceptional service, unbiased advice, and the best possible mortgage rates for their clients.
Using True North Mortgage’s Resources
In addition to their personalized mortgage services, True North Mortgage offers a range of resources to help you make informed decisions:
- Mortgage calculators: Use their online calculators to estimate your mortgage payments, affordability, and more. These tools can help you understand the impact of different interest rates, amortization periods, and down payment amounts on your overall mortgage costs.
- Blog and educational content: Explore their blog for articles and guides on various mortgage-related topics, such as:
- Understanding mortgage terminology
- Tips for first-time homebuyers
- Refinancing your mortgage
- Preparing for mortgage renewals
- Navigating the mortgage stress test
- Frequently Asked Questions (FAQs): Find answers to common questions about mortgages and True North Mortgage’s services, covering topics like mortgage qualifications, documentation requirements, and the application process.
- Case studies: True North Mortgage provides real-life examples of how they’ve helped clients in various situations, such as self-employed borrowers, those with credit challenges, or those seeking mortgage solutions for investment properties.
By leveraging these resources, you can gain a deeper understanding of the mortgage process and make more informed decisions when it comes to securing the best rates and mortgage products for your needs.
Conclusion
Choosing True North Mortgage for your home loan needs means access to the lowest mortgage rates in Canada, expert advice from unbiased brokers, and a seamless application process. With their volume discount advantage and commitment to client satisfaction, True North Mortgage is an excellent choice for anyone looking to secure the best possible mortgage rate.
To learn more about how True North Mortgage can help you save money on your home loan, request a call, apply now, or find a store near you. Their knowledgeable brokers are ready to guide you through the process and ensure that you get the best mortgage solution for your unique situation.
Don’t settle for higher rates or subpar service – experience the True North Mortgage difference and enjoy the peace of mind that comes with securing the best mortgage rates in Canada.
