Home Purchase Mortgage

Are you planning to apply a mortgage to buy your first home? When searching for your first home, you must be aware of the tips and tricks to ensure you get the best mortgage rates in Canada. Getting a competitive home purchase mortgage with flexible terms can save you thousands of dollars over the course of your mortgage.

To make your dream of homeownership a reality, applying and getting approved for a mortgage can help a lot. It’s important to understand what’s involved to save thousands of dollars along the way:

 

  • Do The Market Research

Buying a house requires a significant financial commitment. Spend some time learning about the real estate, lending options and mortgage processes to make the right choice. Make sure you know what you’re talking about and how it’s going to help you by doing your homework. Understanding the ins and outs of mortgages plays a keen role, along with the following

 

  1. Mortgage options
  2. Mortgage features
  3. Mortgage restrictions

 

  • Save For Down Payment

Down payment is the money you put down when purchasing a home. It is subtracted from the purchasing price of your home and the remaining balance is covered by a mortgage. A conventional mortgage is available if you afford to pay 20% or more of the property’s worth. 

In case, your down payment is less than 20%, you qualify for a high-ratio mortgage that requires homebuyers to pay mortgage default insurance. Homebuyers must make a down payment of at least 5% of the buying price of a home.

 

  • Improve Your Credit Score

Low credit score cannot prevent you from getting the best mortgage rates available in Canada. The minimum credit score required to obtain a mortgage is between 620 and 679. However, with a decent credit score of between 680 and 724 points, you may be able to obtain lower borrowing rates.

Even if you have a strong credit score, practicing solid financial practices can help you borrow more money.

 

  • Get Professional Advice About Mortgage Rates

A mortgage broker can assist first-time home buyers in navigating the complexity of mortgage programs, alternatives, and features. Buying your first house in Canada may cause you to worry about unforeseen expenses or overpaying for your purchase. 

You can learn more about the various mortgage features and options from an experienced mortgage broker in Abbotsford. Your financial conditions and future goals may help decide the mortgage option that is better for you. For instance, you need to decide:

  1. What type of mortgage you need—closed or open?
  2. What sort of mortgage rate to choose: fixed or variable?

 

  • Get Pre-approved For A Mortgage

It might be challenging to forecast whether mortgage rates will rise or fall in the coming time. While you’re still looking for your dream home, getting a pre-approved mortgage may shield you from the rising interest rates. You have up to 120 days to lock in a mortgage rate with a pre-approved mortgage. Obtaining pre-approval can help you in determining the amount you can afford to spend while buying your first home.

 

How Can A Mortgage Broker Help?

A mortgage can be obtained through a mortgage broker or your bank. Working with a broker who specializes in mortgages can provide you a number of benefits, including:

  • Secure a better rate with a mortgage broker than a bank
  • Mortgage brokers get wholesale rates from their lender network. 
  • Get to choose from a wider range of mortgage products.

A mortgage broker can also handle all aspects of the loan application process, including negotiating the interest rate and disbursing the funds. They serve as a single point of contact. All of this can make the process less stressful, particularly if you are planning to apply mortgage for the first time.

Satbir Bhullar is a leading mortgage broker in Abbotsford assisting first home buyers in obtaining an easy mortgage at a competitive interest rate. For more details, give us a call right away.

Are you planning to buy your first home? Unaware of how a mortgage works? Mortgage is a financial adventure that empowers individuals to buy a property with lenders’ money they need to pay later in installments. The mortgage industry trends change over time depending on government rates, real estate patterns, housing demands, economic influences, and more. 

In this blog post, we’ll guide you through the complexities and ins and outs of applying for a home purchase mortgage in Abbotsford. 

1. Real Estate & Mortgage Industry Predictability

When it comes to real estate, you can’t predict when the whole mortgage scenario can change. From peak heights to lows, interest rates are moving like a pendulum. The mortgage amount and repayment depend on:

Interest Rates

There have been certain oscillations in interest rates from the last year. This rise is leaving prospective property buyers both anxious and excited. If you are willing to buy a home, this is the right time to invest in a mortgage. 

The Housing Demand

Since property prices are on the rise, the number of buyers interested in buying a property is slightly reducing than they used to be. On the other hand, the growing population in Canada has led to a shortage of properties. The mismatch in supply and demand is causing a significant rise and fall in property prices.

The Local Market

The location of a property plays a great role in deciding its price bracket. Every location has its unique price and factors that determine its value. Some real estate markets are booming while others are dropping down.

2. Economic Influences On Real Estate & Mortgage

The economic position of a country plays a great role in deciding the status of its real estate and mortgage market. The better the economy is, the better the financial conditions and status of the real estate industry. The economy can greatly impact the financial rhythms in the mortgage market.

Your Financial Condition

Your financial situation and status can likely decide if you’ll get approved for a mortgage or not. It all comes down to how well you can improvise and adjust to the market fluctuations. To improve your chances of getting the residential mortgage approved, keep an eye on your funds, credit score, and financial condition.

Tips To Boost Your Mortgage Approval Rate

Getting a mortgage approved is complex and may be a troublesome task, especially if you have a low credit score or have been refused before. Once you understand the ins and outs of a mortgage, you can improve your chances of getting approved and funded by a private lender. An expert mortgage broker can underwrite in the best possible way to influence potential lenders to lend you funds.

Some common tips to follow before applying residential mortgage in Abbotsford include:

Stay Updated & Informed

Listen and closely follow the market trends before planning to invest in a property. Stay updated with the interest rate hikes, check out what the mortgage brokers are offering, recognize the industry patterns, and get to know how your local real estate and mortgage industry works.

Secure Financial Flexibility

When it comes to mortgages, there are many more costs involved other than just brokers’ fees. You must be financially independent enough to stay prepared for any immediate or surprising costs arising. It’s advised to organize your finances, including your down payment and credit score.

Rely On An Expert Broker

Only an expert broker with years of industry experience knows how to navigate the mortgage market, find the best deal, negotiate with a lender, and get you approved even with a bad credit score. It’s recommended to rely on an Abbotsford mortgage broker to make your mortgage journey an amazing experience.

Conclusion

The current mortgage market offers an exciting blend of opportunity, uncertainty, and hope. You can make your way across the complex mortgage application process by keeping your financial condition in check right from the start.

If you are looking for a reliable mortgage broker in Abbotsford to help you out with your home mortgage approval journey, rely on Satbir Bhullar. With 7+ years of experience in the industry, he earns the reputation of a 99% successful mortgage approval rate.