How to navigate Canada’s ‘daunting’ mortgage market amid higher rates

globalnews.ca:

This article is part of Global News’ Home School series, which gives Canadians the basics they need to know about the housing market that they never learned in school.

Canada’s mortgage market can be “daunting” for newcomers at the best of times, experts tell Global News, but the modern borrowing landscape may have would-be buyers and homeowners facing renewal feeling cornered.

Higher interest rates from the Bank of Canada, combined with uncertainty about future hikes or when cuts might come, are complicating mortgage decisions for Canadians.

Choices are limited for many borrowers as they struggle to qualify for the mortgage amount or rate they need to afford a home, but experts say there are a few strategies you can put to work to pick the right option for your financial circumstances.

Here’s what you need to know about how mortgage offers work and how to navigate the complicated space and — hopefully — secure the best rate for your home.

Victor Tran, broker with True North Mortgage and expert with Rates.ca, says there are a lot of factors that can go into the final rate you’re offered by a lender.

Whether you’re renewing, refinancing or buying a home, the strength of your credit profile, how much you put down upfront and even the closing date on your purchase can affect the rate you ultimately secure, he says.

Then there’s the Bank of Canada — the leader of monetary policy in Canada, which broadly sets the cost of borrowing for all Canadians, businesses and financial institutions in the country with its target for the overnight rate.

Many consumers understand that mortgage rates are tied in some form or another to the Bank of Canada’s policy rate decisions. When that benchmark rate rises or falls, homeowners can