There are no longer any special rates or products specifically designed for first time home buyers in Canada. Beware of promotional rates that change after 3, 6 or 9 months. Give ING a call or try www.truenorthmortgage.ca.
What are the advantages and disadvantages of the best mortgage rates and terms for a first time buyer?
Many of the extremely low rates you%26#039;ll find are for Adjustible Rate Mortgages or ARMs. I would discourage getting one of these. If you are considering it, make sure you fully understand how much your payment could go up from one year to the next and how much it can go up over the life of the loan. Also, keep an eye on the %26quot;APR%26quot; or Annual Percentage Rate and not the quoted rate. The APR factors in other loan costs and gives the true picture of the loan.
I could provide more specific advice if the question was more specific.
What are the advantages and disadvantages of the best mortgage rates and terms for a first time buyer?
Sometimes the %26quot;best%26quot; rate or terms are teasers. They will have fees added that may not be called points. There are a variety of methods and charges that can be added so the broker and/or lender get their high fees. Stick with a reputable, well-established broker or lender. Sometimes a broker can get you a better rate than if you went directly to the lender. Make sure you get a disclosure of all the anticipated closing costs, so that you know how much the loan is really costing. If you are buying a new house, often the builder has an agreement with a specific lender. This is usually the best deal - the new house I bought had a $3000. incentive to borrow from their affiliate mortgage company. I could have gone with whomever I wanted to, but I would not have received the $3000. incentive. There was, in this case, no way other mortgage companies could compete, and the decision to take advantage of the incentive was a no-brainer for me, in this case.
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