Between 80 per cent to 85 per cent, it's 2 per cent. For 85 per cent and 90 per cent, premiums run 2.5 per cent. And for people with only 5 per cent to 10 per cent down, the insurance premium leaps to 3.75 per cent. Lenders also must know if your income is large enough and sufficiently stable to carry the mortgage. Besides banks and trust companies, mortgage brokers are popular.
Brokers often arrange no-cost mortgages, the lender covering the fee.
Interest rates should be a factor when mortgage shopping, but never the only factor. Rates are closely tied to terms. Generally, shorter terms carry lower rates. Cashbacks are extremely popular, if you forgo the discounted rate. You may have to prepay taxes up to six months in advance, a cash flow killer.