• Jen Bedard

Mortgages, Banks, Credit, Deposit... Huh?

Updated: Dec 6, 2019


Do you want to secure a mortgage like a pro?

On TV it looks pretty easy, right? You walk into a bank, ask for some money and minutes later you are on your way with a bag of cash. Well, the reality is that there are some hoops and hurdles to navigate but they make sense when you find out why they are there. Let’s take a look at what the process is and what you can expect when looking for a mortgage.

The First Part

Before you get anywhere, you have to determine whether or not you are actually eligible for a mortgage. You may think it’s as simple as filling out a form online and clicking submit; However, you MUST speak with an accredited mortgage professional FIRST and have your income verified. Once you clear that hurdle, the lender will commit to lending you money with some specified terms attached to it. You can sidestep visiting every bank in town by booking an appointment with an accredited mortgage broker who can review several bank mortgage options all at once. I’m happy to suggest a few to help guide you through this initial step. If you are unable to secure financing with a bank, there are other options, just ask.

Credit History

If you are a Canadian or a resident who has lived in the country for a period of time, banks will take a look at your Canadian credit history. This gives them data to determine if you meet their lending requirements. If you have no credit history or bad credit history, there are ways to fix that and still qualify for a mortgage, but it may take some time.

Deposit

You are going to need a cash deposit for the home you are trying to purchase and a regular source of income. Depending on the bank, different income sources may not aid in your eligibility requirements. A few examples are seasonal work, part-time employment, or on-call work. Banks like to see a steady, consistent cash flow coming in on your end. Again, there are lenders out there that have slightly more relaxed terms. It really depends on your specific situation to determine how the terms will be written and what your payment schedule will look like.

How Much You Can Borrow

In Canada, mortgage lenders cover up to 80-percent of the purchase price for Canadian residents. However, you must prove that you have money available to cover the remaining 20-percent. If you can provide a down payment of between 5 and 20-percent of the purchase price, you will require something called a high-ratio mortgage and that means you’ll have to tack on mortgage loan insurance. Typically, this is paid as part of your mortgage payment schedule.

Need Some Assistance with Mortgage Information?

Buying a new home is a big deal. It doesn’t matter if it is your first or twenty-first, each of them are life-changing. For some assistance with information related to getting a mortgage, I can offer a hand. In the Niagara Region, call me direct at 289-213-7031.

My name is Jen Bedard and I would love to help you get into your new home.

#mortgage #credithistory #buildingcredit #deposit #realestate #downpayment

289-213-7031

5 St Paul Crescent
St. Catharines, L2R 3P7
Canada

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