Using a mortgage professional will help to ensure you understand your options and they can help you determine the best program and mortgage choice for you. Before you talk with a mortgage professional, there are a few things you need to know when it comes to submitting an application – and getting approved – for your first mortgage in Canada:
If you’re new to the country and have weak credit, supporting documents will come in handy. These may include: proof of income, proof of 12 months’ worth of rental payments or letter from landlord, documented savings, bank statements and/or letter of reference from a recognized financial institution. These documents all paint the picture of whether or not you are a safe investment for a lender.
Build your Credit Rating!
This is one of the most important aspects to getting a mortgage as credit rating determines your reliability as a borrower and will determine your down payment rate. One of the best ways to build your credit is by getting a credit card that you use and pay off each month. Paying other bills such as utilities, cell phones and rent can also contribute to your credit score and reliability.
One of the most expensive aspects of home ownership is the down payment, which is an upfront cost and one that is vital to securing your future. As mentioned, the down payment can be as little as 5% to 10% depending on your status. However, if you’re paying $500,000 or more for your home, the minimum down payment will be 5% for the first $500,000 and 10% of any amount over $500,000 – regardless of your residency status.
Choose a Mortgage Provider!
Once you are ready to get your mortgage, it is best to contact a DLC Mortgage Professional who can help you determine the best mortgage solution to suit your needs. They may even be able to find you some extra savings!