Big City Financial understands that buying a home is one of the biggest financial decisions you will make, following the tips below will help you be more prepared when the time comes to weigh your mortgage options.
One of the most important steps will be getting your mortgage pre-approved. By obtaining a pre-approved mortgage this allows you to narrow down your housing search based on a concrete budget. This leads to the second major benefit, which is the increased likelihood of your offer being accepted by the seller based on the financing that has already been put into place.
You will require the following in order to become:
Your credit history gives mortgage providers information on your financial past and how well you have paid your debts and bills.
If you have no credit history, it is important to start building one. No better way to do this then by applying for a credit card. Use it and pay it off in full as soon as possible.
If you have a poor credit history, donâ€™t worry, you can still qualify for a mortgage, however you will require guarantor a person who satisfies the bank’s requirements, who has a good credit history, and can guarantee your loan.
Below is an indication of how much money you might be able to afford on a mortgage, depending on total income and expenses.
|Household Income||5% Down||Max Home Price||10% Down||Max Home Price||25% Down||Max Home Price|
|This table assumes a mortgage interest rate of 8%, average tax and heating costs in Canada, and the mortgage and average Canadian would qualify for based on a 32% debt service ratio.|