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Step 1
Determine your buying power by using the services of a professional Realtor or loan officer. Before making any decisions about the type of financing you want to secure for a property, it's important to know the maximum amount that you are able to borrow based on your credit history and current market conditions.
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Step 2
Create a worksheet for the loans and loan rates available to you. What might seem like a great deal can be a very different scenario when it's put on paper. Start the worksheet when you are shopping loans, and make a list of pros and cons about the different standard rate variable mortgages available to you.
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Step 3
Work with a mortgage broker. Mortgage brokers can broker your information out to several lenders in order to shop and compare the best standard variable rates on the market. Keep a watchful eye on the current market conditions.
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Step 4
Ask questions of your mortgage broker. The biggest difference between the offerings in regard to standard variable rate mortgages is often due to whether the rates are capped or uncapped. A capped rate means that regardless of market conditions, you are provided with a hedge of protection against the rate going up astronomically.
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Step 5
Discover if there is a penalty for paying capital early. Most standard rate variable mortgages will not penalize you if you choose to pay your loan balance earlier than the standard 30-year term. The best way to determine whether or not a standard variable rate mortgage is the best deal is to do the research and find out everything you need to know about the prepayment terms.
