While working with an experienced mortgage broker to help you find a great deal on a mortgage in Calgary is always a smart idea, there are a number of other things you can do to ensure that you get the best mortgage for your circumstances; here are 6 of them:
- 1. Have a good credit score
Having a poor credit score means that lenders will likely see you as a risky borrower, and will be less inclined to approve your loan application, or offer you a higher interest rate than someone with a good credit score.
Before you schedule a consultation with a mortgage broker in Calgary, check your credit score and see what kind of shape it’s in; if it needs improving, you can research ways to do so and try and implement them immediately.
- 2. Set a realistic budget
It makes no sense at all to take a mortgage loan that will leave you destitute at the end of each month, so take the time to calculate what you can afford, and be honest and realistic with the results.
- 3. Choose the right mortgage length
In Canada, mortgage loans are typically 25 years in duration, giving Canadians plenty of time to pay back the loan. That said, you can also opt for a 5 or 10 year renewal term and an amortization period of 15 years or 25 years, depending upon which lender you choose.
- 4. Work with a mortgage broker
The best way to compare lenders and find out which one might be able to offer you the best terms and rates, is to work with an experienced mortgage broker, who will likely have access to lenders that you haven’t even heard of, and great deals you wouldn’t otherwise have been privy to.
- 5. Get preapproval
When seeking preapproval for a loan, you get the chance to weigh up your options and get exact loan prices, because the lender will carry out a formal review of your credit score and financial documents before approving a loan.
Here are some of the things you will be asked to provide for preapproval:
- • Social Insurance Number
- • Government ID or driver’s license
- • Credit score report
- • Personal details
- • Employment details
- • Tax returns for the past two years
- • Other relevant financial documents
One sure-fire way of increasing the cost of your mortgage is by incurring penalties, but fortunately, they’re easy enough to avoid if you wait until the payment period for penalties has passed before you refinancing or repaying the loan. You can also make extra payments where permitted without necessarily triggering any penalty payoffs.
Getting a great deal on a mortgage for a home in Calgary is absolutely within your reach, just try to follow the advice given above, and invest in the services of a local mortgage broker.