How Do Lenders Decide? The Mortgage Stress Test
When you apply for a mortgage at one of the Big 6 Banks in Canada there are strict guidelines that must be followed to determine whether or not you are approved. One of the guidelines is known as the mortgage stress test which measures your ability to afford a mortgage if the interest rates were to increase in the future. The mortgage stress test is based on an interest rate that is above the average mortgage rates that are being offered to customers at the current time. There’s much more to the mortgage stress test than that, and you can read about it on our blog.
Recent Changes to the Mortgage Stress Test
The Federal Government recently made changes to the way that the mortgage stress test minimum rate is determined. When the changes take effect on April 6th, 2020, the stress test rate is expected to decrease. That’s good news for people who are looking to get into the housing market for the first time since people who may not have passed the mortgage stress test at the higher rate may pass at the lower one. This will likely apply to younger home buyers, and those carrying a high level of debt.
Finding Reasonable Self Employed Mortgage Rates
Almost 20% of Canadians report being self-employed and that percentage is expected to increase in the future. Getting a mortgage when you are self-employed can be difficult because of the requirements for proving your income. As a result, many self-employed people turn to private lenders or end up with higher self employed mortgage rates. If you are self-employed and thinking about buying a house, or looking for a 2nd mortgage a mortgage broker in Burlington can help you find a lender that is more friendly to offering self employed mortgage rates. A mortgage broker in Oakville can help you to access all of the options available to you and to get the best self-employed mortgage rate.
Get Help Finding the Lowest Mortgage Rates in Burlington
There are a lot of mortgage lenders vying for your business, but finding the best rate is not always easy simply because there are so many options. It takes a lot of time spent simply filling out the applications and understanding your options. Unless you shop around there is no guarantee that you will get the lowest mortgage rate in Burlington. However, a mortgage broker in Oakville can take on the shopping for you and can steer you towards the right type of mortgage and with the lowest mortgage rate in Burlington.
The Best Mortgage in Oakville May Not Be What You Expect
Many people who are new to real estate and house hunting have a lot to learn about the different mortgage options available to them. The best mortgage for you may not be what you had in mind when you started applying. This is where it helps to have a mortgage broker in Burlington to walk you through the choices and recommend the best one for your financial situation. HW Advantage is a mortgage broker in Burlington, Hamilton, and Oakville, dedicated to helping people through the mortgage process and finding the best mortgage in Oakville. Contact HW Advantage today at 905-541-6961 or submit the form below to get in touch with us. Let’s talk about the types of mortgages and find out what works best for you!