If you have purchased a new built house set to close this fall or you plan to buy, you owe it to yourself to become informed and shop around.
Don’t just take builder / bank financing because it is likely you will NOT end up with the lowest rate – we see it all the time! This can mean $$$Thousands$$$ of dollars in your pocket.
What is the best way to become fully informed? Well we cannot think of any better way than to talk to an experienced, reputable independent mortgage professional who will protect you and save you money.
Such bank financing can be a ‘trap’. This is because mortgage rates are not guaranteed beyond 120 days and new homes take longer to build and complete. Consequently, new build financing is structured with a ‘hedge’ against rates rising between the time of offer and closing. For example, the bank gives you an approval with or cap or maximum rate which is typically one half to a full one percent below posted rate. Today that would look like 4.64% minus 1.0% or a committed cap rate of 3.64%.
This compares not too favourably with current rates guaranteed for up to four months of 2.75 to 2.89%. As you can see their remains a significant ‘spread’ between current rates and cap rates for new builds, leaving money on the table.
Hypothetically your rate is supposed to float down to current rates closer to closing. The problem is that the bank does not provide any guarantee of giving you the lowest rate and most often they do not and the final rate ends up somewhere in between. The truth is, new build financing gives the bank a opportunity to make more profit than with resale and they will if they can.
So if you currently are in this situation PLEASE COME SEE US WITH YOUR OFFER within 120 days of closing AND WE GURANTEE WE WILL BEAT THE BANK RATE!!!
In addition you can benefit greatly from our VALUE ADDED LOCAL RETAILER DISCOUNT PROGRAM WITH  UP TO 35% off of home improvement and furnishings, including décor paints, window coverings, carpets, landscaping, decks, patios etc etc, all the things you will need to pay for after you move in. Potential savings here by buying locally are in the $$$Thousands$$$ of dollars.
Buying a brand new home is one of the most exciting times of our lives because we are first to live in it and the first to put our personal touches on it.
Because of the myriad of expences associated with ‘new’ it is of the utmost importance to ensure you do not waste money and there is no bigger potential for that than with a cap rate mortgage scenario. We also have a discounted legal cost arrangement with one of the best real estate lawyers in the region to save you even more.
If you are planning to buy ‘new’ in the near future, save yourself the hassle and the headache of a bank cap rate mortgage.
WE NOW HAVE GUARANTEED RATE FINANCING FOR UP TO NINE MONTHS WITH OUR GUARANTEE TO BEAT THE BANK!
Please call to make an appointment to learn more, now.