Benefit from the government policy while you purchase

Ontario 120 day Rate Hold Policy

Ontario home buyers can take advantage of the 120 day rate hold policy supported by the government. Canada rate hold for mortgage comes to benefit home buyers in a very significant way. The rate hold actually does what the name of the policy suggests – It will hold a mortgage rate constant for you over a period of 120 days when you are looking for a home purchase.

Let Government Rules Work to Your Advantage

Owing to this new rule, most pre-approvals are set with a 5 year fixed rate featuring a 120 day rate hold. This rule is meant to protect the home buyers in case the mortgage rates happen to rise during this 120 days period. On the other hand, if the mortgage rates happen to decline during this period, your pre-approved mortgage rates can be lowered as well. Sounds great! Doesn’t it!

How to Use 120 Day Rate Hold Regulation

While you are in the process of filling in the mortgage loan application, Canada brokers can help you by making use of the 120 day rate hold policy. The concept of rate hold works like a free option. For example, consider you hunt for the best mortgage rate and get yourself a 3.74% rate hold. During the 120 day rate hold period if the global risks happen to subside and the economy recovers, then the 3.74% rate can jump up to 4.50% or even more over the 120 days period. The good thing here is amidst such a circumstance, you will have your mortgage rate locked in. This enables you to save up to ¾ point for instance.

Mortgage Brokers Understand Rate Hold Policy Better

Rate hold cannot help you much if you cannot make the proper use of it. Remember that you are not a professional and you know fewer things than a mortgage broker. A mortgage broker can find you some effective ways to make use of the Canada rate hold for mortgage. You need to understand that a rate hold won’t mean anything if you are not able to meet the lender’s eligibility criteria. A mortgage broker will help you know whether you qualify for a mortgage loan or not.

A mortgage broker can help you get a better rate than what you can get directly from the mortgage money lenders. While you are gaining up to ¾ point in the example quoted above, the consultation with mortgage broker can do you good instead of what you can handle. He or she is well versed in the field. They know how to turn the stones that remain unturned. In addition, a mortgage broker can give you a professional advice, a complete range of services plus guide on the process of applying for mortgage loan. These are some of the valid reasons for going to a mortgage broker.

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The Mortgage Division Manage Mortgages Better

There is one another good news. Brokers can let you extend your rate hold any time. The implication being that an all-new 120 day rate hold at the current rates of the mortgage industry is great. By evaluating your specific circumstances, a mortgage broker can suggest you which money lender has the best mortgage rates. Over and above, if you know for sure that you are most likely to close a home purchase deal within the given 120 day period, a mortgage broker can help you find the cheapest pre-approvals.

To know more about our Canadian mortgage services call 400-000-0801.


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