Are you in a position to start looking for a home? If you are be sure to read our seven tips for first-time homebuyers looking for a mortgage first!
1. Work with a reputable mortgage broker.
Sure, you may have already gotten some offers from your bank, but banks can only sell their own products. That means you might not be getting the most competitive price. A mortgage broker will shop around to make sure that you get the mortgage most suitable for your needs.
2. Get pre-approved.
Before you begin house hunting, it is always a good idea to get pre-approved for a mortgage. Not only with this make your house hunting more efficient by letting you know exactly what you qualify for, but it will lock in a rate so you won’t have to worry about interest fluctuations.
3. Take advantage of first-time home buyer programs.
The Government of Canada has a number of programs in place to help first-time homebuyers. Consult with your mortgage broker to find out which ones you qualify for.
4. Have your credit report ready.
One of the most important factors in determining what kind of mortgage you’ll be able to qualify for is your credit report. Save time by having this ready when you apply for a mortgage.
5. Decide between a fixed, variable or hybrid mortgage.
Most Canadians tend to gravitate toward fixed mortgages because they offer the security that your rate will not change for the term of the mortgage. Depending on your situation however, a variable rate mortgage or a hybrid mortgage might suit you better. Your mortgage agent can explain the differences and help you decide which is best for you.
6. Plan for a big down payment.
Saving up for a larger down payment can save you big money because it often means that you will be able to take advantage of lower interest rates and lower closing fees. If you can save a down payment of 20% of more, it also means that you will be able to forego mortgage insurance.
7. Submit a thorough application.
To make the process go as smoothly as possible, make sure that you gather all the necessary documentation and that your application is thoroughly and accurately completed. This will help to avoid unnecessary delays.
If you are a first-time homebuyer and would like to apply for a mortgage, contact Akal Mortgages today.
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