We’re a Toronto mortgage broker that cares. We want you to be ready for home ownership. That’s why we have put together some tips for helping you to get approved. Hunting for a new home and putting together a budget are big steps.
You should get your finances in order too. Here are a few tips to help you get approved.
Put Together a Down Payment
You need to put together some cash up front regardless of the type of house you’re buying. Here are a few benchmarks to guide your savings plan.
- If the house you want costs 1 million dollars or over, you’ll need 20% of the purchase price to start.
- Does it cost less than $500,000? The minimum down payment will be 5 percent.
- Does the house you have your eye on cost between $500,000 and $999 999? You’ll need to do a quick calculation. On the first $500,000 you need 5%. After that, you will need 10% for each part of the purchase price that’s over $500,000.
In this country, if your down payment is less than 20% you’ll also need to have mortgage loan insurance. Don’t forget that these payments get tacked onto your monthly mortgage total.
Check Your Credit Score
Your credit score is important. You’ll get the lowest mortgage rates with a higher score. Ideally, you’d like that to be around 660. Don’t forget there’s more than a number involved. Your credit report also has data about the number of accounts you’ve opened, the length of your history, and information about any late payments.
OMG Mortgage Capital is your Toronto mortgage broker team. We offer a variety of industry-leading services like creative and customized solutions with a proven track record.
