Key points
- Mortgage interest rates can vary substantially from one lender to another.
- Each borrower’s individual financial credentials will affect the rate they’re offered.
- Borrowers can get a better rate by shopping around for lenders and improving the credentials lenders look at.
For most people, buying a home without a mortgage isn’t a realistic possibility. A home loan is necessary to help pay the expensive cost of a property.
If you’re one of the majority of home buyers who needs a mortgage in order to be able to purchase a property, you’ll want to get the lowest-priced loan possible. That’s because mortgages are for a large amount of money and they have a long repayment timeline, so they can be expensive types of debt over time — especially if you pay more than necessary.
