In Canada, there are lots of institutions that give mortgages. The difference between the lenders is in the price, terms, and conditions of the mortgages they offer. Because there are so many lenders competing for business, almost everyone who applies for a mortgage can be approved for a mortgage. The question is whether you can be approved for a mortgage with the best price and terms. In most cases, the answer is “yes.”
In terms of finding a lender, you usually have three choices. You can apply for a mortgage from a bank, you can shop online with a few institutions, or you can use an independent mortgage broker.
An independent mortgage broker has access to more than forty lenders, including almost all of the banks, as well as credit unions and trust companies. If you use a mortgage broker, he or she works for you but gets paid by the financial institution that takes the deal. For you, that means the most options. Furthermore, the mortgage broker will compare lenders and products for you and create a competition between the financial institutions, using their access to the lenders to make sure you get the best deal possible for your situation.
Although Canada has tightened the rules on mortgage lending, there is still some flexibility which will allow you to get mortgages with the best prices and terms. There are programs for almost every type of borrower, including:
- Employed borrowers
- Self-employed borrowers
- Newly landed immigrants
- Immigrants in process (those who’ve not yet landed in Canada)
- Work visa immigrants
- People with no credit history
- People with poor credit history
- People who want to use their mortgage as a tax planning tool
The various lending programs and their terms are updated every day. By using a mortgage broker, you give yourself the advantage of an expert who has access to all the information and data to find the best mortgage for you.
In order to calculate the mortgage that you’re qualified for, including the amount and likely terms and pricing, you’ll be asked to answer a series of questions about yourself and your spouse, including your legal name, address, date of birth, and income details. You will also be asked to approve having your credit report pulled. Based on the information provided by you and your credit report, we will be able to indicate the amount that you would be qualified for and under what likely terms. Because time is so valuable, we’ll provide preliminary answers within one working day.
If you’re having difficulty getting a mortgage because your income or credit score is low, we will be able to analyze the situation with you and recommend a series of focused steps. These steps will let you rebuild your income and/or credit and restore the situation, making you the kind of borrower who can be approved for a mortgage in a very short time.
In order to get the best possible mortgage for your situation, it’s important to prepare as soon as possible. Preparing all of your documents and considering potential scenarios ahead of time can save you a substantial amount of money. The right preparation, including a guaranteed mortgage from another lender, will give you much more leverage when negotiating with lenders, sometimes enabling you to reduce the price of your eventual mortgage. Furthermore, you can have a rate hold for 120 days; this will protect you from rising rates and changes in terms while you look for your dream house with your dream mortgage!