How To Lower Your TD Mortgage Rates
There are many factors that influence the interest rate on your TD mortgage. The most important factor is the current mortgage rate. However, there are some other things to consider as well. Here are some pointers for refinancing your TD mortgage.
One factor that may affect your mortgage rates is whether you choose a shorter or longer closed mortgage term. This is a six month fixed mortgage with the option to convert into a longer term at no extra charge to you, within a minimum of twelve months. This applies to the six-year closed mortgage rate, whereby td mortgage rates will first give you money in an amount equivalent to 5% of your mortgage principle, back at the start of each year. Then there will be a second payment increase prepayment penalty that will take effect once your balance has reached or surpassed the maximum amount you can pay at the start of the next year.
Your country of residence and the real estate market in your province also affect TD mortgage rates. If you live in a strong country like Canada, the real estate market is very strong. The economy remains buoyed up by high prices of homes are being resold at a very fast pace. Consequently, there are many people who want to take advantage of this booming market. If you are a new immigrant to Canada, you are in a unique situation as compared to those immigrants who settled in their home country, but were not able to curb the market just the same.
This is where a second mortgage on your home can help you. There are two types of second mortgages: a home equity line of credit (HELOC). An option with a HELOC may allow you to take advantage of current low interest rates. The main benefit with a HELOC is that you will have more control over the amount of money you borrow. For example, you may be able to increase the amount of money you borrow at any given time depending on your financial needs.
Another way to reduce TD mortgage rates is to get a fixed-rate mortgage. A fixed-rate mortgage comes with a specific interest rate that remains unchanged for the life of the loan. With a fixed-rate mortgage rate, you can plan ahead and set aside a certain amount of money to use when the interest rates fall. On the other hand, if you want to prepay your mortgage without waiting for lower rates, you can opt for a short-term repayment plan. In case your loan term without penalties comes to an end, you can finish your payments early and enjoy some relief from higher interest rates.
Mortgage lenders always give their customers a grace period before they post their final advertised rates. During this time, you can shop around for the best possible deal among the competing institutions offering mortgages in your area. To do so, you need to contact your local bank to find out what special offers the bank has currently. If you prefer to walk away from a bank after you receive their rate, you can look up the posted rates of competing lenders online. You can then select the lender with the lowest posted rates.