Getting the best mortgage rates is a fundamental for having a good home buying experience. That’s why we are here. Our job is to work for you and not the big financial institutions. Still, our clients are always asking us what goes into the best mortgage rates?
Here’s some simple answers we hope you’ll find useful.
Income Matters—but not necessarily for the reasons you think
Most people understand how important it is to have a steady income in place before you buy a home. Of course, as your mortgage broker Toronto, we stress that aspect. However, we like to tell our clients that stability is just as important as amount when it comes to what you make.
Most lenders like to look at candidates who have been employed for at least two years. If you can avoid long periods of unemployment or a job with a pay scale that goes down, that works to your advantage.
New Rules Matter
This being the first month of 2018, we thought it would be a good idea to talk a bit about the new mortgage rules and how they affect the best mortgage rates. Basically, some folks might need to set their sights a little lower. With the new financial requirements in place, Canadians might need to look for a home 20% cheaper than they might have last year.
We don’t have the space to get into the nuts and bolts of a discussion here, but if you get in touch with us will be happy to explain.
Down Payment
Regardless of the new mortgage rules, having a sizable down payment is still a good idea. A minimum of 20% is usually the low-end benchmark for many lenders. We’re always here to answer your questions about what goes into the best mortgage rates.
