You know, there used to be a time when I could give you a quote over the phone and I wouldn’t have to worry about being too far out. Today is a totally different story. Here are some of the variables that come into play:

1. What’s your credit score? A 700 FICO score is the new 650 for many lenders as their investors demand better quality borrowers.
2. Where is the property located? Rural areas are getting harder to finance.
3. Is it an insured file, are you putting less than 20% down payment?
4. Is it insurable? Are you putting down more than 20% on the purchase while being able to qualify under the stress test?
5. Is the loan to value going to be 65% or less? You get the same rate as the guy with 5% down and have to qualify with the same criteria.
6. Are you looking to refinance or buy a rental? Sorry, but both are uninsurable. You would have to qualify under the stress test and you would have to pay a slightly higher interest rate.
7. So, how about your employment; have you been on your job or at least in the same industry for the last 2 or more years?
8. Down payment requires a 90-day statement of where it has been kept, please be sure that it was in a bank as anything else seems to be picked to death. Lately, larger gifts have required that the giftor confirm that the money was in their account. God forbid they should have won it at a casino as they will want the print out from the cage boss, especially in B.C.
9. How fast is your file closing? There are usually “quick close” rates for insured files.

As you can see, there are a lot of things that come into play when determining what your best rate could be. Hopefully, anyone who gives you a rate over the phone has asked you at least some of these questions. The best rate today is more about what fits your situation but the old adage of who, what, where and how still apply. Once we have asked the questions, we have to audit the answers to make sure it’s the best fit for your situation. If you have any questions, contact a Dominion Lending Centres mortgage professional near you.