Tips on Applying for a Mortgage in Today's Market
In today's market banks are taking a more cautious approach with qualifying consumers for mortgages.
Before starting your search for the perfect mortgage be prepared so you can negotiate the best rate.
And, use the free mortgage calculator tool by CLICKING HERE
Simple Tips on Shopping for a Mortgage
Employment Verification: Have your job letter and pay stub handy - if you have no paystubs,
then use T4 slips. If you are self employed obtain 2 - 3 years of your tax returns
(Notice of Assessments). If you cannot find them, you can contact Revenue Canada to
reprint and mail you a copy.
Downpayment Verification: Many banks today want to ensure your downpayment is
obtained through savings, and not being borrowed from a line of credit or cash advance
from a credit card. Copies of your passbooks, bank statements, RRSPs, GIC's etc in
advance are extremely helpful. The majority of lenders will be looking for a minimum
of 5% downpayment plus evidence that you have a sufficient funds for closing costs.
(lawyers fees, land transfer tax)
Credit: Your personal credit score is key. If you are not sure of your credit score –
you can apply on-line with www.equifax.ca to review your personal file.
Contact me for more info about how to read/interpret your credit report.
Tips for Refinancing Your Mortgage
If you are currently locked into a long term mortgage at a higher rate we suggest calling
your existing Bank first to review any discharge fees. Many consumers believe to break
a long term mortgage only costs about 3 months interest penalty. But, read the fine print
and you might notice - it is 3 months interest penalty or the "differential" whichever is higher.
It might be wise, before considering switching mortgages confirm your discharge penalty.
In many cases the cost to break a mortgage might outway the savings of a lower rate.
If your mortgage is coming up for renewal - we suggest shopping around 90 days prior to
May we also suggest the same tips in preparing to shop as above - Tips for Shopping for a
The goal is to save as much money as possible on your mortgage rate!