After falling in love with a home, many would-be homeowners go directly to their bank and apply for a loan. In many instances, the bank reviews their credit and makes them an offer they could refuseif they understood just a little more about the mortgage application process and mortgage rates! Calgary residents often end up paying a much higher rate than necessary, and at mortgages by Candice we don't want you to make that mistake!

As you begin considering a mortgage, a term you will frequently hear is prime rate. What does the term mean and how does it affect your own mortgage rate? Here we define prime rate and explain how you can find the best Calgary mortgage rates before you apply.

Mortgage Rates Calgary: Prime Rate Defined

All lending rates are calculated based on the risk a borrower poses to a lender. In Canada, the prime rate increases and decreases as the national economy fluctuate. The prime rate is heavily influenced by the overnight rate set by the bank of Canada, and commercial banks use the prime rate for their most credit-worthy customers, typically large corporations and other banking institutions.

The goals of Canadian monetary policies are two-fold, with the long-term goal of preventing inflation and short-term goals to reduce unemployment. In response to trends causing economic pressure on the markets, the bank of Canada sets the overnight rate eight times per year.

Careful Planning Will Help You Find the Best Calgary Mortgage Rates

Since all lending rates are based on risk, private citizens that demonstrate a lower risk of defaulting on repayment of their loans are also offered the lowest lending rates. Calgary residents can increase their credit-worthiness (before applying for a mortgage) to get a lower rate, and those who demonstrate they are low-risk are often able to borrow at an interest rate even lower than the prime rate.

The following tips will help you take advantage of today's prime rate and help you find the lowest mortgage rates Calgary:

Before applying for a mortgage, utilize a mortgage calculator to get an idea of how much you can afford to make as monthly payments

Make a larger down payment put down as much as possible to demonstrate financial responsibility, good money management skills, and a serious commitment to keeping the home and paying off your mortgage

Improve your debt-to-income ratio by paying down as much debt as you can, especially credit card balances

Manage your credit score by keep all your bills paid on time even your cell phone bill

If your credit is less-than-perfect, prepare to discuss the reasons why and be able to demonstrate how your situation has improved

Never attempt to justify poor decisions but if a hardship such as a medical condition, divorce, or the death of a family member caused you financial difficulties, share this information with the lender. Many will work with you if you demonstrate you are financially stable now.

Lowest Mortgage Rates Calgary: Mortgages by Candice

Please contact Mortgages by Candice today to learn more about how you can take advantage of today's prime rate! As a mortgage broker, Candice doesn't work for a lender. She works for you, finding you the lowest available mortgage rate!