Recently I had some good friends of mine ask what the going interest rates are and more

importantly what is the best rate could I get them. Obviously not an uncommon question in my

line of work but this is no longer a quick and easy question. Last year if I wanted to be a little

cheeky (depending on who was asking) I'd respond with a question of my own, like ‘what’s your

credit score?’ 9 times out of 10 there would be an awkward pause and blank stare followed by a

‘does it matter?’ Yes, yes it does. Once we got through that portion of the conversation I'd then

begin talking about the rates. But that was 2016, and now that it is 2017 the rate game has

become a little like the ‘did you see what Trump just tweeted’ conversation that is making people

yearn for the days of old.

Last October Finance Minister Bill Morneau announced significant changes* to our industry

which included new securitization rules and qualification requirements. These changes forced

lenders to adjust their pricing models to account for the increased costs of doing business and

those costs have been handed down to you the borrower. Prior to that announcement I had a

nice simple rate sheet that told me what every lender was offering. Now my rate sheet could

easily be 5 pages long and it would still be incomplete. Credit scores were once the driving

factor in your interest rate, now Mortgage Brokers should be asking you a laundry list of

questions to determine what mortgage is best suited for you long before they tell you the “best

rates.”

Here are some questions you need to be prepared to answer before you can start asking about

the interest rate. Is this a purchase or refinance? What is the loan to value percentage? What

term and amortization would you like? What type of property are you wanting to

mortgage? Can you prove your income? Can you stomach the idea of a very large penalty if you

need to break the term? These are just a few of the questions your Mortgage Broker needs to

ask when you to properly evaluate what the best rate for you is.

Do you want to know where you fit into the new world of mortgage rates? Please give me a call

or send me an email and I would be happy to help.

*Industry Changes: Department of Finance and Article from the Globe and Mail

Mortgage Tip: Do you know what is on your credit report? Check your report for free.