Ready to begin the search for your perfect piece of Canadian real estate? Before you dive into researching the current homes on the market, make sure you’ve obtained a mortgage pre-approval, so you have a realistic budget on hand to base your search off of.
Obtaining a mortgage pre-approval can be a relatively quick process – sometimes as simple as filling out a form online. The ease of the application will depend on your financial history and the details needed to determine whether you can afford a property you’re interested in, as well as the level of risk of lending money to you. It’s best to chat with a trusted mortgage professional, asking these questions to ensure you’re doing your due diligence in educating yourself.
Which lender is best for my financial situation?
A mortgage broker is a licensed professional who has access to a diverse pool of lenders to find you the best suited mortgage product. This means they’ll be able to shop the current market for you and negotiate the best mortgage for your individual needs. Having a wide array of lenders available means that a broker can secure the best rates, product types and amortization for you.
Should I secure a fixed or variable loan?
Historically, variable interest rate mortgages have been lower than fixed rates, while fixed rate mortgages provide more security in budgeting your monthly costs. With these unprecedented times, you’ll want to thoroughly review all your options with your mortgage broker.
How much should my down payment be?
Contrary to popular belief, you don’t necessarily need 20% as a down payment. Your mortgage professional will help you determine the best plan of action for the down payment amount that makes the most sense for your financial circumstances. Be aware that if your down payment is less than 20%, you will be subject to Canadian Mortgage and Housing Corporation fees.
Do the mortgage services cost me anything?
Typically, there is no fee for you to use a mortgage broker, as the broker gets paid by the lender or financial institution who ends up providing you with the mortgage product you choose. However, you will still want to ask this question, just to make sure there is no other arrangement you would be responsible for paying.
Is there a penalty for pre-payment?
Sometimes there are “hidden” fees if you attempt to make additional payments on your mortgage, so make sure you read all the fine print and ask your mortgage professional any additional questions that you need clarity on. If there is a penalty or additional fees, determine how the penalty is calculated, what the terms are for the pre-payment, as well as whether you’ll be charged a penalty if you choose to refinance or port your mortgage in the future.
Ready to get a pre-approval in your hands? I’d love the opportunity to work with you to start the exciting journey of finding you the perfect home. Let’s connect,
Chad Eliason⠀⠀⠀ 📞 250.804.9874⠀⠀⠀ 📧 info@chadeliason.ca⠀⠀⠀⠀ 🌐 http://www.chadeliason.ca
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