Can You Lock In Historically Low Interest Rates On A Mortgage?

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Can You Lock In Historically Low Interest Rates
On A Mortgage?
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• Taking advantage of low interest rates
  (historically low, in Canadas case) is possible
  with a mortgage pre-approval, and while it
  doesnt provide you with a guarantee that youll
  be approved for a mortgage, it does give you the
  opportunity to lock in a low interest rate if
  only for a matter of weeks. This means that even
  if rates go up in the future, you could still get
  that the great rate thats available today.
• Getting pre-approval can be advantageous for
  several reasons, and dont forget that a good
  mortgage broker can help you with this process
  and give you advice about the entire mortgage
  process, too. Heres more about locking in an
  historically low interest rate by getting a
  mortgage pre-approval

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• What is a mortgage pre-approval?
• This process is when a lender reviews all of your
  financial information - from debts and assets, to
  credit history and current income and tells you
  the highest mortgage amount youre able to
  borrow. Usually, theyll give you an estimate of
  what your monthly mortgage payments will be, and
  an interest rate based upon the current rate.
• Is it possible for a lender to change the rate
  after pre-approval?
• Your interest rate is locked once youve been
  pre-approved, however, there are two instances in
  which your chosen lender is permitted to change
  the rate

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• Your financial circumstances have changed
• If your ability to pay back what you borrow
  becomes compromised by a change in your financial
  circumstances i.e., you lose your job or incur a
  fresh debt, then the lender has every right to
  raise the locked-in interest rate to cover the
  added risk that you now present to them.
• If base interest rates begin to fall
• In some circumstances, you may get an even lower
  interest rate than the one you locked in due to
  lower base interest rates, and lenders generally
  honor the new, lower rate.

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• Should you get pre-approved?
• If buying a new home is part of your current
  agenda, then pre-approval could help you buy one
  and move in, far quicker. Generally free, once
  you get pre-approval from a lender, youre not
  committed to taking out a mortgage with them and
  only them.
• However, if buying a new home is something youre
  contemplating but havent yet decided upon, then
  a mortgage pre-approval could be a waste of time.
  Remember that the lender you seek pre-approval
  from will run a check on your credit, and this
  could have a negative impact on your score.

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• Whats the difference between pre-qualification
  and pre-approval?
• Simply put, pre-qualification is when a lender
  assesses your finances without a credit check,
  and tells you how much money they might choose to
  lend you, while pre-approval gets you a locked-in
  mortgage rate.
• If youre still undecided as to whether
  pre-approval to lock in a historically low
  interest rate is a smart move for you, talking to
  a local mortgage broker could help you make up
  your mind.

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• Mortgage-broker-Calgary is your best resource for
  finding a mortgage for your property and mortgage
  rates in Calgary. Luke Wile, is a Calgary
  mortgage specialist and is proud to serve clients
  from across Canada, while being centered in
  Calgary, Alberta. Luke is proud to serve his
  clients with a personalized approach to finding
  his clients the best and lowest Canadian mortgage
  rates and terms offered by the major banks and
  private lending institutions. If you are looking
  for the best mortgage rates in Calgary, with Luke
  Wile you can get fast and personal expertise for
  your mortgage!