Applying for Mortgages in Canada may sound simple at first especially when there are dozens of loan products to choose from. Whether you want to refinance your mortgage, considering consolidating your debt, or want to make a purchase on a property, you will need to do some research on how to apply for mortgages properly. With that being said, here are a few tips that may help you navigate the complicated world of mortgages in Canada.
It’s not always about the lowest rate. The common misconception about mortgages is that the lowest is always the best. This is not a guarantee that you are getting the best value. There are other factors that you need to consider aside from the price such as mortgage penalties, prepayments, and portability just to name a few.
Factor in loan penalties. If you are planning on purchasing an investment property or you want to refinance your mortgage, mortgage penalties may be far from your mind. However, this can be a huge mistake in the long run. A lot of Canadians often go for five-year fixed-rate mortgages, but these can be accompanied by high mortgage penalties. It may be better if you go for a mortgage with higher interest rates but with lower penalties.
Know what you want in a mortgage. Since there are several types of mortgages available like primary mortgages and second mortgages, just to name a few, it’s hard to decide which one to get. The best way to narrow down your options is to determine why you want to take out a loan in the first place. Once you determine what you need from your mortgage, it will be easier for you to shop around.
Avoid putting your application in jeopardy. When you are applying for a mortgage, make sure that you don’t do anything that will affect your approval. Quitting your job is a common reason why your application will be denied since you will not have any means to pay off the loan. Another reason which can affect your mortgage application is taking out an auto loan or making a big purchase using your credit card which can reflect on your credit history.
These are just a few tips that you might want to take note of if you are planning on applying for a mortgage in Canada. This way, you will be able to land the perfect loan product that will suit your needs. So hurry up and fill out our application form online to get approved.