| |
Increase |
Decrease |
| Amount
of
Loan |
Rates
Up |
Rates
Down |
| Length
of
Loan |
Rates
Up |
Rates
Down |
| Adjustable
Rate |
Rates
Down |
Rates
Up |
| Down
Payment |
Rates
Down |
Rates
Up |
| Discount
Points |
Rates
Down |
Rates
Up |
| Closing
Costs |
Rates
Down |
Rates
Up |
| Credit
Quality |
Rates
Down |
Rates
Up |
| Income
Level |
Rates
Down |
Rates
Up |
| Lock
In
Period |
Rates
Up |
Rates
Down |
The
amount
of your
loan can
increase
your
interest
rate if
the
amount
financed
exceeds
the
conforming
loan
limits
established
by CMHC
and GE.
The
conforming
loan
limit
changes
at the
beginning
of each
year.
Shorter
loans,
such as
20 year
or 15
year
note,
can save
you
thousand
of
dollars
in
interest
payments
over the
life of
the
loan,
but your
monthly
payments
will be
higher.
An
adjustable
rate
mortgage
may get
you
started
with a
lower
interest
rate
than a
fixed
rate
mortgage,
but your
payments
could
get
higher
when the
interest
rate
changes.
A
larger
down
payment
–
greater
than 25%
- will
give a
much
better
chance
of being
approved,
and will
save you
the cost
of CMHC
or GE
Insurance.
Down
payments
of 5% or
less
should
expect
to pay a
higher
rate as
you are
starting
with
less
equity
as
collateral.
Credit
quality
and
debt-to-income-ratio
affect
the
terms of
your
loan
through
your Beacon
Score.
If you
have
good
credit
and your
monthly
income
far
surpasses
your
monthly
debt
obligations,
you will
get
approved
at a
lower
interest
rate.
However,
if your
monthly
income
barely
covers
your
minimum
debt
obligations,
even if
you have
a good credit
report,
you will
not
receive
the
lowest
available
interest
rate.
