Mortgageswithgm

You can use your saving, a cash gift from a family member, equity from the sale of another property, or if you are first-time home buyer, you can use your RRSPs up to $35,000

1. Check (and improve) your credit score:

Below 599: Poor credit
600 to 679: Fair credit
Above 680: Very good credit

Pay your bills on time and in full, especially for credit cards and loans.
Try to use less than 30% of your overall credit limit.
Don’t apply for more credit than you need. Lots of applications can hurt your credit score.
Keep your oldest credit card active, even if you don’t use it. Having a long credit history is good for your credit score.

2. Pay down your existing debt

Gross Debt Service Ratio (GDS) and your Total Debt Service Ratio (TDS). The general guideline from the Canada Mortgage and Housing Corporation (CMHC) is to have a GDS of less than 35 per cent and a TDS of less than 42 per cent. Your GDS is the percentage of your monthly income that pays for your housing costs under your new mortgage. Your TDS is similar to your GDS in that it factors in your housing costs, but it also includes your other debts such as car payments and credit card loans.

3. Save more for a larger down payment

A larger down payment increases your maximum affordability. Because of the minimum down payment rules, increasing the size of your down payment also increases the maximum purchase price you can afford.
Increasing your down payment while maintaining the same home buying budget means you’ll need to borrow less and take out a small mortgage. A smaller mortgage attracts less interest over time, saving you money. Your monthly mortgage payments will also be lower, which will make budgeting easier.
A down payment of at least 20 per cent saves you the cost of mortgage default insurance, which is mandatory for mortgages with down payments of less than 20 per cent.

4. Know what you can afford

it’s important to have a realistic budget

5. Get a mortgage pre-approval

A mortgage pre-approval shows the mortgage amount a lender is willing to loan you and the mortgage rate they’re willing to hold for you. Although a pre-approval does not guarantee that your actual mortgage application will be approved, if your financial situation and employment remain unchanged between the time you get your pre-approval and apply for your actual mortgage.

Home Equity Loan:
🔘May reduce term of mortgage and build equity faster
🔘Refinance a home mortgage
🔘Apply once for a fixed rate
🔘Consolidate loan debt

Home equity Line of Credit:
🔘Only make payments on amount you borrow
🔘Variable rate
🔘Security to be able to pay for unexpected expenses/emergencies
🔘Borrow again and again without reapplying (up to 10 years)

Reasons to Refinance Your Mortgage💸

☑️ Refinance Your Mortgage to Save Money

☑️ Save Money by Dropping PMI

☑️ Save money on interest payments

☑️ Refinance to Lower Your Payments

☑️ Shorten the Term of Mortgage by Refinancing

☑️ Refinance Your Mortgage to Consolidate Debt

☑️ Reduce Risk

Get independent, objective advice on your financial options.Mortgage Brokers are not restricted to any one bank or range of products. They work for you and can make objective recommendations on financing solutions through hundreds of lenders.

Save time with convenient one-stop-shopping.Mortgage Brokers do the research and shopping for you so there's no need for you to waste time organizing appointments with competing mortgage lenders when you could be house-hunting!Negotiating on your behalf.

Negotiating can be stressful. Mortgage Brokers act in your best interest and do all the negotiating to secure competitive rates and terms that make sense for you.

More choices.With a network of major lenders and products to choose from, Mortgage Brokers can source your ideal mortgage options from banks, credit unions, non-traditional lenders and more.

Assurance that you're getting the best rates and terms.Mortgage Brokers have the negotiating power because lenders compete for their business. To you that means the best rates and terms for your individual needs.

Access to special deals and add-ons.Many financial institutions offer incentives including retail points programs or appliance discounts. Mortgage Brokers can tap into the perks and savings you deserve.

Fast and efficient.From the initial assessment of your unique situation right through the closing process, transactions move quickly when working with a Mortgage Broker.

Expertise.Mortgage Brokers are specialists providing expert advice and guidance on mortgage products, interest rates and current housing market conditions.

No cost to you.Mortgage Brokers are paid by lending institutions which in the vast majority of cases means there's no cost to you and no surprises.

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