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Postponing the search for a mortgage? If you’re hunting for your new home, it’s important to find a residential mortgage rate promptly. Here is some information to help you prepare for the mortgage pre-approval process.
Defining Residential Mortgages
Most Canadians do not have the monetary means to buy a new home without financial assistance. This is where mortgage lenders help. Lenders and borrowers come to an agreement in which the lender provides the borrower with the funds required to purchase a new property. The borrower then pays the money back to the lender, over a set time period, with interest.
It can be complicated to search for a residential mortgage rate without experience.Mortgage brokers, like those who work here at FamilyLending.ca, can assist with this process. Mortgage brokers have the experience needed to find residential mortgage lenders that suit your borrowing needs. What's more, they can do it quickly and efficiently.
The Uses of a Residential Mortgage
Though it may seem difficult, applying for a mortgage isn’t as tough as some people insist. Hiring a mortgage broker can simplify the process of finding a competitive rate and make the process of applying for a mortgage pre-approval easy. Before contacting a mortgage broker for help, make sure you have the following information handy:
- How much of a down payment are you planning to supply?
Cash back mortgages, though burdened with higher interest rates, require as low as a 1% down payment. However, a Mortgage Insurance Premium is necessary if your down payment is less than 20% of your home’s value. A FamilyLending.ca mortgage broker can help you prepare for this additional expense.
- Whether you would like a variable rate or fixed rate mortgage.
A fixed rate mortgage is just what one would assume it to be: a mortgage in which the interest rate remains the same throughout the payment period. A variable rate, on the other hand, includes an interest rate that fluctuates with the market. While this could end up being a smaller interest rate at times, it is entirely at the mercy of the market and therefore could rise or fall dramatically, making it less stable.
- Financial background information
In order to act as an accurate intermediary between you and the lender, your broker will need to understand your financial history, as well as your current circumstances. If you can, make available your annual income statement and documents regarding debts as this will allow your broker to find an appropriate rate. It will also enable your broker to speed up the residential mortgage pre-approval process.
As bank lenders have a smaller stock of information regarding residential mortgage products, it’s smart to work with a mortgage broker whose knowledge and resources are more extensive. Contact a FamilyLending.ca mortgage broker today to simplify your hunt, or complete the no obligation application for a residential mortgage pre-approval online for free!