Low interest mortgage loans are available to those who want to purchase or refinance their homes.
If you are thinking about buying a home, it makes the most sense to make sure you can obtain a mortgage before you start house shopping. You will also want to be sure that you understand the extent of your mortgage closing costs to ensure that you have the liquidity to go through with the purchase.
Do not go from bank to bank applying for mortgages. This will result in multiple credit inquiries on your credit report and will reduce your overall credit score. This alone could disable your ability to get approved for a mortgage.
Go to a Mortgage Broker, one that deals with all the major banks. They will be able to:
- Pull your credit
- Review your credit applications
- Tell you what you qualify for
- Negotiate with the banks
- Obtain a low interest mortgage pre-approval on your behalf
Most Mortgage Brokers can negotiate with the bank to hold your mortgage interest rate for 120 days.
Depending on your credit and income, you will need between five to ten percent of the purchase price as a down payment. If you are obtaining a CMHC mortgage, you will have to prove where your down payment money came from.
If you are planning to purchase a home, you will also need to consider the following “other closing costs” you will incur when purchasing a home.
- It is always prudent to have a property inspector go in and do a home inspection on a property you are planning on purchasing. The cost of an inspection is approximately one thousand dollars.
- You will have to obtain Fire Insurance Coverage on the property. This is often cheapest when bundled with other insurance policies, such as car insurance.
- Real estate legal fees will be incurred both on your property purchase and on your mortgage closing. Many Real Estate Lawyers can offer you a bundle deal that covers both closings.
- Finally, you will need to have enough money set aside to cover your land transfer tax which could be 1-3% of the property purchase value.
Your closing costs will vary depending on the location of the property you are purchasing. Step one in the process of planning to purchase a home is to establish a relationship with a good Mortgage Broker.