The term ‘discount mortgage’ in Toronto can be tricky to understand. Although it implies the possibility of finding a mortgage with significantly reduced rates, this will never be the case. Instead ‘discount’, when used in conjunction with ‘mortgage’, (especially when used by brokers or lenders) really just means an opportunity to get the best possible rate for your situation.

According to the Bank of Canada the biggest determining factor affecting mortgage rates is “You and the characteristics of your mortgage”. Loosely translated this means in order to get the best rate you must look good on paper credit-wise and you must choose a mortgage option that presents less risk to the lender (open mortgage vs. closed mortgage).

The good news is that you can take some steps to ensure you get the best possible rates, and even earn real cashback rewards dollars in the process.

As mentioned, part of the biggest determining factor that will affect your rate is you. So, the first step is to work on your financial health.

Some ways to do this include:

• Creating and maintain a budget that has a clear goal defined such as saving for a down payment, or for debt repayment. This will allow you to take inventory of your financial status and also work towards future plans.
• Determine where your credit score is, where it needs to be, and what you can do to improve it. You can request a credit report free once a year from one of the two main credit bureaus in Canada (Equifax and TransUnion).

Knowing the difference between banks and mortgage brokers is the next step towards a discount mortgage in Toronto. Going to bank for a mortgage means limited options for the types of mortgage products available. Banks tend to only offer posted mortgage rates which are certain to be higher than what you may find when working with a brokerage. The approval process from a bank tends to be much more restricted as well. For instance, if you’re a self-employed entrepreneur it is almost guaranteed not to be approved. Brokerages, on the other hand have an entirely different approach to finding discount mortgages for their clients.

Mortgage companies such as Dominion Lending Centres (Canada’s leading mortgage company) are an excellent example of how dedicated mortgage professionals go above and beyond to help their clients find the best rates possible. They provide information for all stages of the home buying process from mortgage preparation, including tips on the information mentioned above (budgeting and credit score improvement) to the pre-approval process and beyond. Unlike banks that limit product options and have set rates, mortgage brokerages work with a variety of lenders. In fact, Dominion Lending Centres have access to hundreds of the top lenders including tier 1, tier 2 and even private lenders. Plentiful options allow borrowers the best chance at getting a discount mortgage in Toronto.

A lot of the information above may seem like common knowledge to more seasoned home buyers, but did you know there was a way to earn cashback rewards when are purchasing real estate or even if you are refinancing? There is an online shopping platform that offers free membership and an unrivalled loyalty program simply for shopping and referring friends. Shop2Save offers members volume buying discounts on everyday items and rewards shopping with real cashback rewards dollars. And not just on everyday purchases! Shop2Save also connects their members with the top reputable names in Canada for purchasing big-ticket items like automobile insurance, home insurance, real estate transactions and mortgages.

Of particular interest to those looking for discount mortgages in Toronto, Shop2Save services it’s members with Dominion Lending Centres, and as mentioned mortgage brokerages are your best bet to finding the best possible rates for your situation.