Canadian Western Bank
XMC Mortgage Corporation
Most people are motivated to seek out the lowest mortgage rate possible when shopping around for offers. While the difference between rates may only be a fraction of a percent and sound negligible, this can translate into thousands of dollars in savings over the lifetime of your mortgage loan.
The mortgage rates offered to you by a lender are dependent on a number of factors, such as the purchase price, your down payment, amortization and your credit score. Lenders use this information to assess how likely you are to repay your mortgage loan.
The purchase price and your down payment will determine how much you need to borrow, which in turn impacts your mortgage payment. You can see the effect of your down payment amount and mortgage rates on our rates page.
The mortgage amortization is the period of time over which your mortgage will be paid off. The longer the amortization period, the more interest you’ll pay on the loan. The most common amortization period in Victoria, British Columbia is 25 years. The most common mortgage term is five years.
Your credit score is used to assess your creditworthiness, in other words, how risky it would be for a lender to lend you money. Your credit score changes over time, as your credit report gets updated. Those who can manage credit responsibly and make their loan payments have a higher score. In general, you are more likely to get a lower mortgage rate if you have a higher credit score. Those with lower credit scores tend to receive higher rates.
When you initially get a mortgage in Victoria, British Columbia, you are committing to a mortgage term. This mortgage term can vary in length — anywhere from a few months to five years, or longer. When your mortgage term comes to an end, you can choose to renew your mortgage with the same lender, renew with a different lender offering more favourable terms, or pay your mortgage off in full.
It’s best to shop around a few months before your mortgage renewal, and see what other lenders can offer. You don’t have to wait until you receive a renewal letter from your lender to see what other mortgage options are available.