spiral staircase from top to bottom

Winning the LOWEST Rate


Keys to the Lowest Rate

Ready to buy a house and winning the lowest rate. Your mortgage rate is heavily influenced by the characteristics lenders look for in borrowers. To get your best possible deal and make sure you meet all of their criteria. Have an impressive credit score, demonstrate stable income and employment history, provide low debt-to-income ratios (DTI). Then, offer 20% as down payment or more if available, this shows financial stability! It’s no surprise that those who present themselves well will get accepted at lower rates. Don’t worry if not everything matches up perfectly – they take other factors into consideration too!

Lower Down Payment?

Don’t let a heavy down payment weigh you down! CMHC Insured mortgages with less than 20% require an insurance premium, but they also offer the lowest mortgage rates. With conventional loans over 20%, higher interest prevails. That being said, some lenders are willing to charge sweet discounts if your wallet’s full enough. A minimum of 5% is needed in Canada, so take advantage and start budgeting for that dream home today!

Does the Lowest Rate = The Best Deal?

When it comes to mortgages, don’t be dazzled by rock-bottom rates! Sure, low interest look great at first glance. However, there’s a range of other factors that can make or break your mortgage deal. Take prepayment provisions for example, these vary between lenders and could potentially cost you in the long run if not suitable to your needs. Additionally, portability clauses should also be taken into consideration before committing. Some brokers might leave out important information when touting their lowest rate offer so ask questions beforehand! We welcome all of your mortgage questions and will provide the best answers for your situation. When deciding on a mortgage plan use all available info as part of an informed decision making process. After all, this is one purchase you’re likely going handle only once in life time. That is why winning the lowest rate for your own case is important.

screens showing market data

Mortgage Trends in Canada

Looking to buy a home in Canada? You’re not alone. With home prices moving downward, it makes now a great time to jump into the housing market. But what does that mean for you as a potential homeowner? Let’s take a look at the current mortgage rate trend in Canada so you can make an informed decision about your purchase.

Mortgage rates have been on the rise in recent months

The Mortgage rate trend in Canada have been going up in recent months, and while that can be concerning to homebuyers, there are still money-saving strategies to keep in mind. In particular, mortgage rate hold periods allow borrowers to secure their mortgage interest rate upfront for an agreed period of time. This means that if rates start to climb again during the home shopping period, you will be thankful that you locked in. Furthermore, depending on your financial situation and credit score, it may also be wise to take advantage of shorter terms. This could mean smaller monthly payments for them over time. With the Mortgage rate trend in Canada always changing, savvy borrowers should always review options before you commit to a purchase.

The average mortgage rate is now above 5%

With the average mortgage rate now sitting above 5%, many prospective homebuyers have taken to choosing flexible options. Consider a variable rate or 2 year fixed mortgages. Variable rate mortgages are ideal for those expecting fluctuating incomes, as it ensures that when a homeowner’s income increases, the savings can be passed on by decreasing the amount of their monthly payments. Conversely, 2 year fixed rates provide stability, since they are not subject to change during that period. With such options available, lenders need to ensure that they’re competitively priced and informed of prevailing market standings so as to enable customers to make informed decisions.

Using a Mortgage Calculator to Move Forward

Checking the affordability of a mortgage on a potential property purchase is easy to do using an online mortgage calculator. With a few clicks, you can enter the qualifying rate, amortization length, and amount of the loan quickly. This will determine your estimated monthly payment. Shopping for a mortgage? Then don’t leave home without testing out your options with a mortgage calculator. It will provide you with essential information about what repayment options work best for you. Starting with this step can save time and money in the long run!

10 First-Time Homebuyer Mistakes

man dangles his legs sitting on a cliff

Stay Variable or Go Fixed

Stay Variable?

If you’re currently in a variable rate term, you may be hoping that rates stay lower than fixed over the next few years. However, if inflation doesn’t get under control by the Bank of Canada quickly, they may raise throughout your term. This will leave the possibility open that your variable rate could be higher than the fixed one you passed up. The upside is that if your variable rate ends up higher than expected, it may still turn out cheaper over a 5-year term. So when making your decision to go with a fixed or variable, make sure the math supports both scenarios.

or Go Fixed.

Fixed rates can be a great security to make sure your payments are static over the duration of a term. But they come at a cost. With a variable rate, you’re taking on a risk. What if it turns out that the fixed rate was better? If the Bank of Canada’s plan to control inflation and spending is successful and they don’t continue to raise, then the variable may not end up surpassing the fixed any time soon. On the other hand, if it takes longer than expected to regulate spending and inflation, then rates will have to rise further. Ultimately, meaning that those with the variable rate may have to pay more than their counterparts with fixed mortgages. That being said, many savvy consumers opt for variables because even if the market rises over their term, their five year average rate could still end up much lower than those who chose fixed.

In Conclusion

When five-year variable mortgages became a popular choice in 2021/2022, it has become challenging to know if now is the time to switch to fixed. With BOCs recent rate hikes, those who chose a variable rate are wondering if now is the time to switch. Evaluating a few scenarios can help dictate if it is time to lock into a fixed rate. Consider your concern about payment increases and your need to stay on top of the markets in order to gain insight into how the BoC’s rate mandate could eventually tame inflation. If this uncertainty creates stress or anxiety, it may just be the right time to switch over to a fixed-rate.

Depending on your financial goals, you may be feeling the strain of constantly varying payments. Fixed-rates have higher penalties for breaking the term and some lenders may not even allow it. However, there isn’t a cost tied to locking in at your best fixed rate. Therefore, you’ll want to consider all your options before deciding what’s right for you.

paint tray with roller and white paint

Purchase Plus Improvements Mortgage

Hey, did you know there’s a way to buy your dream home—and spruce it up at the same time? It’s true! Enter the Purchase Plus Improvements mortgage. This program allows you to borrow the cost of renovations (up to a certain percentage) and add it to the home price. All rolled into one easy-to-manage mortgage payment. That means once you take possession of your new home, you can start the upgrades immediately. What could be more convenient?

How Does a Purchase Plus Improvements Mortgage Work?

The first step is to get pre-approved for a Purchase Plus Improvements mortgage. When applying for this product, lenders need estimates from you in order to determine how much money they will lend. For example, they might ask for quotes from contractors who will be doing the work on your new home. This is so they can make sure that all costs associated with the renovation are accounted for. Once approved, lenders will provide funds for both the purchase of your home and the improvements that need to be made.

The Benefits of a Purchase Plus Improvements Mortgage

One of the major benefits of this type of mortgage is that it eliminates the need for two separate mortgages—one for purchasing your home and one for making renovations or improvements. Instead, everything is rolled into one loan with one simple monthly payment. This makes budgeting much easier since you don’t have to worry about managing multiple payments and keeping track of different due dates or interest rates. Additionally, this type of loan also allows borrowers to access funds needed for renovations without having to take out a second loan or use their own savings account.

Another great benefit is that these types of mortgages often come with lower interest rates than other types of loans. (such as traditional personal loans). That means more money in your pocket over time as opposed to spending extra on interest payments each month! Last but not least, this type of loan offers flexibility. You can decide what kind of work needs done on your new home. All while still staying within budget and paying off only one single loan payment each month!


A Purchase Plus Improvements mortgage does offer an attractive option if you’re looking to buy a new home and upgrade it right away without having to juggle two separate mortgages or dip into personal savings accounts. By providing lenders with quotes from contractors doing work on your property, you can secure funds needed for both purchase and improvement with only one single monthly payment at an attractive interest rate—which adds up big time in terms of savings down the line! So what are you waiting for? Start shopping around today and find out if a purchase plus improvements mortgage is right for you! Start your Application today.

Banker Secrets They Don’t Want You to Know

Banker Secrets They Don’t Want You to Know. If you are looking to pay off your mortgage faster, here are some tried-and-true tactics to get you to financial freedom that much sooner!

  1. Make a Double Mortgage Payment: A double payment once a year can shave over four years off the total life of the mortgage! Better yet, if your mortgage allows for double-up payments, another option is paying an extra $100 into your mortgage – per month. This can save you over $26,000 in interest on a 5.5% fixed-rate, 25-year amortized mortgage.
  2. Increase Your Payment Frequency: Changing your mortgage from monthly to bi-weekly accelerated payments can shave over three years off your mortgage. At $2,000 a month, three years of no payments is worth $72,000 (not to mention the interest saved!).
  3. Increase Your Payment: Did you know? A one-time 10% increase can shave four years off the mortgage. That’s $96,000 in savings! Imagine if you bumped the payment 10% every year from the get-go. You would be mortgage-free in 13 years—start to finish! Can’t do it? How about 5% every year? You would be mortgage-free in 18 years! You can also consider increasing the payment by the amount of your annual raise.
  4. Lump Sum Payments: This is another option to become mortgage-free even faster! Even just one extra payment a year equivalent to one monthly payment will give you similar results as #2 above. Annual work bonuses or other extra-income is a great option for this.
  5. Renegotiate When Rates Drop: Revisiting your mortgage is a good idea when rates drop. However, it is always best to get expert advice from a mortgage broker to ensure it makes sense for you. If so, the benefits can be huge! For instance, a 1% reduction on a $300,000 mortgage will save $250 a month—times five years, that’s $15,000.
  6. Maintain a High Credit RatingEven if you have already qualified for the mortgage you want, don’t let your credit rating slip. Pay your bills on time and keep balances low in relation to limits on credit cards, lines of credit, etc. Ideally, using 30% or less of your available credit will garner the highest results (assuming you pay the balances in full every month). Even if you’re filling your card to its credit limit max and paying it off in full each month, it will look like you are maxing out your credit limit and your credit score will drop accordingly.
  7. Increase Your Mortgage: Increasing your mortgage for the purpose of debt consolidation can be helpful for paying off credit card debt, line of credits, car loan and so on for a better rate and a set payment plan.
  8. Make an RRSP ContributionBy making an RRSP contribution, you can then use your income tax refund to pay down your mortgage!
  9. Switch to a Variable Rate: Switching your mortgage to variable-rate while keeping your payments the same as if on fixed can help you pay your mortgage faster. Since variable rates are typically lower, you will be paying more to your principal loan versus the interest.
    • Caution: Variable rates are not for everyone. Always be sure to seek the help of a mortgage broker to find out if variable-rates are the best choice for you.
  10. Take Your Mortgage With You: When you move, switch your old mortgage to the new property to avoid a penalty or higher rate on a new mortgage. This is called “porting”, however not all mortgages have this feature so be sure to ask! It is not widely known but could save you a ton of money.
  11. Set Up Automatic Savings: Even setting aside $10 per paycheck can help! When your extra savings reaches the amount of one mortgage payment, apply it to the mortgage! This concept goes nicely with #4.
  12. Unhook From The Money Drip: Stop paying with your fancy points credit or debit card. These make it way too easy to overspend. Go old school, go off the grid and pay cash. It works and can help you stay on track!
  13. Don’t Buy on Layaway: You know, those don’t-pay-for-six-month “deals”, well a lot can change in six-months and you’ll still be on the hook. If you cannot afford it now, don’t buy it. Wait until you are financially able to make the investment.
  14. Downsize Your House: Are you living in a 5-bedroom family home but your kids are grown up and moved out? Consider downsizing to a smaller house. It will save you money on your mortgage payments and maintenance fees in the long run!
  15. Rent Out the Basement: Not ready to move? Consider converting spare rooms to rental and use the income to pay down debt.
  16. Make Your Mortgage Tax-Deductible: If you are self-employed, own rental property or have investments, this is likely possible. Check with us at Prime Mortgage Works to see if this option is right for you!
  17. Prioritize Your Payments: Define your various debts by category. This can help you see where you spend your money and also help you pay off your debt faster.
  18. Start With the Highest-Interest Rate: Pay off loans with the highest interest rates first, as these are the ones eating into your extra income!
  19. Leave Tax-Deductible Until Last: Pay the non-tax deductible loans first and fastest and leave tax-deductible debt to the end.
  20. Focus on Ugly Debt First: Debt such as credit card balances are the worst on your credit rating. Pay these off first.
  21. Pay Off Bad Debt Next: Debt for items that depreciate in value, such as car or boat loans, should be the next on your priority list.
  22. Clear Good Debt Last: Loans such as mortgages or investments for assets that should appreciate in value are the least harmful to your net worth and can be paid out last.
  23. Buy a New Car – Outright! Finance it if you have to but don’t lease, unless you are self-employed in which case leasing makes more sense.
  24. Use Your Secret Stash: If you have $20,000 in a bank account for a rainy-day or vacation and yet owe $20,000 on a line of credit, you need to reconsider. The bank account is paying you next to no interest (which is taxable income) and the line of credit rate is way higher (and not tax deductible). You know what to do. You can keep the line of credit open and on standby for a rainy day. Make it the secret line of credit that you have but never use.
  25. Give your Banker More Money: No, really. Keep enough in your chequing account to meet the minimum requirement to waive your service charges. Some banks charge a fee for transactions and nothing, zero, zilch, zip if you keep $2,500 in the account. Let’s see, $10 x 12 is $120 a year to pay off debt. I’d have to earn 5% with the $2,500 in my savings account to come out ahead. No-brainer here. Oh yeah, if you need more than 25 transactions a month, see #12 above.

Let’s face it, your financial future will not get any brighter if you continue to run deficits forever. Unlike a bank or big company, you won’t get a bailout! Stop procrastinating and take charge of your own finances with the above tips!

If you are looking for expert advice about your mortgage and how to pay it down faster, contact us to discuss YOUR situation and options.


It is always important to take things with a grain of salt. This is especially important when it comes to too-good-to-be-true, ultra-low-rate mortgages. These “no frills” mortgages are often loaded with restrictions such as pre-payment limitations, fully-closed terms, stripped-out features or unusual penalties. If you’re not looking at what you’re giving up, you may regret it in the future. These Banker secrets alone could prevent you from taking advantage of tips #1, 2, 3, 4, 5, 7, 8, 9, 10, 14, 16 and 22!