If you are planning on buying a home, you’ll do well to use our mortgage broker Toronto services. We have direct access to all the major Canadian lenders. That means you get the best mortgage rates through us and outstanding features.
Here are a few tips for getting preapproved.
- Checking on and improving your credit score where necessary should be a priority. The higher the score, the more lenders see that you are committed to repaying loans. There’s a range of scores to look at. Poor credit is below 599 in Canada. Most people fall within the range of fair credit which is a score of 600 to 679. Numbers above 680 mean that you have very good credit.
- You can improve your credit score before you apply for a mortgage by paying your bills on time. Remember having a long credit history is good so you should keep your oldest credit card active. Keep your spending down to under 30% of your credit limit.
- Our mortgage broker Toronto team also suggests that you try to keep your income as stable as possible. That usually means hanging onto your day job. It’s not the only factor that matters. Staying with one employer for the long term helps your chances of being preapproved.
Try to save as much as possible for a good down payment. The reasons this is a good idea are simple. The bigger the down payment, the less money you will need to borrow. That means you’ll have less interest to pay in the long run.
Bypassing Insurance
If you can save up to 20% you will also bypass mortgage default insurance. We like to suggest this as your mortgage broker Toronto specialists so you can save thousands of dollars. Finally, you should put together a realistic budget before you start house hunting to give you a good idea of what you can afford.
