3 Creative Canadian Mortgage Tips

The key when attempting to get a new mortgage or financing for anything is echoed by the famous motto and mantra of the Boy Scouts: Be prepared! It’s true out in the wilderness and it’s equally true in the world of financing. If you are about to make one of the biggest commitments in your life, make sure you know these 3 Canadian mortgage tips first.

1. Create a Packagecanadian mortgage tips

If you walk into a bank, financing company or mortgage broker with some sort of package organized with all the important and relevant information, you are going to be much more successful. Make sure you have your personal tax notice of assessments from the previous years (most want 3 years), net worth statement and what you’re using the money for (written on paper). Understand how the cash is going to flow and where the business is going to go.

2. Be Flexible

canadian mortgage tips

When I say flexible, I’m thinking about the people who walk in and start making particular demands without considering what that financial institution is currently looking at lending. You have to be flexible and understand where you want to get to and the different ways that could potentially get you there.

Asking yourself how your financial institution or mortgage company can help you to get to where you want to go. They have the expertise and they know who’s lending money and how it’s being lent because banks and finance companies can change what their parameters are as you’re going through the motions.

3. Use A Broker

canadian mortgage tips

I believe, depending on what you’re shopping for, that it is wise to use a broker. If I were shopping for a personal mortgage, I would use a mortgage broker. My banking friends won’t like that statement but a mortgage broker doesn’t have a specific company that they have to work with and can shop it around, often getting a better rate. Not to mention the fact that it doesn’t cost you anything to work with them.

When you go through a mortgage broker, the mortgage company actually pays them so it doesn’t cost you additional fees to use one. The odds are good that you will end up getting a better rate in the end.

Another great benefit of using a mortgage broker is not having repeated credit scores being drawn under your name. People always worry about how many credit scores it takes before it begins to negatively affect their credit history.

I don’t know exactly how many it takes but I do know that the more credit reports done for a particular individual, the more it hurts their overall credit rating. Rightly or wrongly, that’s just the way it is and if you are looking to get a half million-dollar loan for a house, that’s something you will need to consider.

What Canadian mortgage tips have you found most useful in your experience? Share with us in the comment section.

 

 

3 Responses to 3 Creative Canadian Mortgage Tips

  • francis says:

    hi my name is francis and i have a question … when you say i can go in a bank with a plan i can choose the way the bank will lend me money.. eaven if they have standards and packages… i could have my personalized… some one like me a beginner investor what would i need a letter from another institution or some one i know would it help

    • Ken Davidson says:

      Hi Francis, it would be best for you to have a conversation with a mortgage broker.

      • Great points Ken, though hopefully a good Mortgage Broker (like me) puts that “package” of information together with the client and then presents it to the lender(s) who will best meet the client’s needs. A good (read experienced) Mortgage Broker will “hold a client’s hand” from beginning to end of the mortgage transaction, ensuring the client is well informed, gets the best rate & product, and is 100% happy with the end result. Always, Always use a Mortgage broker for ALL your mortgage needs!

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