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Now That You Have Mortgage Pre-approval

couple shaking hands with a mortgage professional - what to do once you have mortgage pre approvalMortgage pre-approval is a handy tool for lenders and buyers as it allows people the freedom to shop for a home with some level of confidence in the amount they can spend. Once you have a mortgage pre-approval secured, you usually have between 90 and 120 days to make your purchase to get the rates and terms agreed upon in your mortgage pre-approval. It is important to remember that pre-approval is not a guarantee of final approval once all of the paperwork is done. As such, there are some situations you should try to avoid during your mortgage pre-approval period. First, if you can control it, don’t change jobs. Try to avoid making large purchases or applying for new credit. Essentially, try to keep your financial situation as stable as possible to avoid any flags for the lender. When it comes time to process your mortgage application, you should have smooth sailing towards purchasing your new home.

Time to Think About a Fixed vs Variable Mortgage

Up to eight times per year, the bank of Canada decides on whether to raise or lower interest rates. With rates at historic lows, there will inevitably be an increase. So if you are thinking of taking on a mortgage, or it’s almost time to renew, you should be thinking about whether a fixed vs variable mortgage is the best option. There are pros and cons to each type of mortgage, and the one that is the best fit for you depends not only on interest rate trends but also on your financial situation and your goals for paying down your mortgage. Get the advice of an expert and talk to a mortgage broker about fixed vs variable mortgages before you choose.

How to Get a Mortgage Without the Mortgage Stress Test

The mortgage stress test is a calculation used by mortgage lenders to help determine your eligibility for a mortgage. The purpose is to prevent Canadian homebuyers from taking on a mortgage that they would struggle to afford as interest rates rise. Only mortgages from regulated financial institutions such as the Big Six Banks, most credit unions and financial service companies fall in this category. They are required to apply the mortgage stress test against all mortgage applications. How to get a mortgage without the mortgage stress test? You can do it by applying for a loan from so-called alternative lenders or private lenders. These companies have their own lending criteria, which often does not include the mortgage stress test. If you have been denied a mortgage because of the stress test, talk to a mortgage broker about alternative options.

Get Help Finding a Private Lender

Private lenders are companies, groups or individuals looking for investment opportunities outside the stock market or other securities-based investments. They can be an excellent resource for short-term mortgages, second or third mortgages, renovation mortgages or other financing needs. However, mortgages are complex legal agreements, and you want to be sure your rights are protected. Work with a mortgage broker or mortgage professional who can help match you with a private lender who meets your needs. They will also help facilitate the deal to ensure it goes smoothly and that both parties are protected from additional risk.

HW Advantage is Your Mortgage Broker in Burlington

Harrison White and the team of mortgage professionals at HW Advantage are dedicated to ensuring that you get the best mortgage rates in Burlington and the right mortgage to meet your family’s needs. The HW Advantage is the service and support you’ll get, well after your mortgage is finalized, to ensure that you are able to pay down your mortgage your way and at the pace you want. Get in touch with Harrison and find out how working with a broker makes the process of shopping for a mortgage, renewing a mortgage or getting a real estate investment mortgage so much easier. Call (905) 541-6961 or submit the form below to get started.

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