Monthly Archives: August 2021

If you’re reading this article, you’re probably looking into buying a home in Ottawa. You’re not alone: more and more people have been looking into it and actually making a purchase. It’s never been more crucial to search Ottawa for mortgage services that are reliable than nowadays since things are so intense, bidding wars are happening left and right.

Read on for what you should know about buying a house in Ottawa:

Know What You’re Looking For

There are many types of houses out there, and knowing what you want will definitely help things along. Some people tend to initially seek properties that they can improve upon to sell for a profit, or what’s otherwise known as ‘flipping.’ That’s why aside from people looking for their ‘forever homes’, the competition for securing a deal on a house involves many house flippers. Take note that Ottawa home purchases typically have a lot of upfront costs.

Location = Budget

Okay, you’ve decided on Ottawa, but where exactly? There’s no way around it: your budget will be the key factor. Popular suburbs include Barrhaven, Kanata, and Orleans; if you want to move into Glebe, Hintonburg, or Westboro, be prepared to dig into your finances since prices there are quite steep. In general, downtown Ottawa tends to be quite pricey.

The Search Is Fast-Paced and Won’t Be Easy

The Ottawa housing market is in such a frenzy right now that offers are put in as ocular inspections are ongoing. Yes, this means that the house you’re considering can be sold and gone before you’ve even left the property.

Find a real estate agent you can rely on to point you towards ideal neighbourhoods and houses. Offering more than the asking price is practically a default in order to have an actual fighting chance. Bear that in mind when you take on mortgage services. If anything, it’s almost like less of a search and more of a hunt, where the quickest and sharpest get the “prize” home. 

If you see something you really like, decide quickly. A good rule of thumb is to have pre-set terms and limits, like a ceiling for your budget and non-negotiables for a home. That way, you don’t accidentally put down an offer for a house that doesn’t turn out to be what you want in the long run.

What About Renting?

There used to be a misconception that renting was a better way to get savings going instead of taking on a mortgage. However, looking into the numbers, there’s a big chance that what’s being paid in rent can be similar to mortgage payments. Make sure you really weigh your options since making payments towards buying a home also comes with the benefit of building equity.

Conclusion 

Buying a home in Ottawa these days means getting involved in a fast-moving market. The demand is quite high as more people are looking to relocate to the area. Bear in mind that you should know what you’re looking for, location will depend on your budget, and that the search is fast-paced and won’t be easy.

Looking for a mortgage agent in Ottawa? Reach out to Ottawa Mortgage Services today! We provide mortgage agent services for first-time home buyers, self-employed individuals, and commercial clients alike. 

The pre-approval stage is a necessary step before you can secure a mortgage. This is why homeowners shopping for different lenders get pre-approved for numerous loans before settling down on the right one for them. While the pre-approval period can last from 90 to 120 days, it’s important to remember that you can still lose your current loan terms under specific conditions.

Losing Your Mortgage During the Pre-Approval Phase

Pre-approval is a necessary agreement between you and your chosen lender on the mortgage you’ll sign. This sets the rates, conditions, and other terms in your contract as you enter an arrangement as a borrower. 

Although some homeowners see this stage as a guarantee of their purchase, they can still be denied their loan under specific conditions. Since scouting for a new loan after being denied can be a more challenging feat, you must be wary of the variables that can compromise your value as a borrower.

While you’re in the pre-approval stage of securing your loan, here are three things you need to watch out for:

1. Incurring New Debt

A recurring reason lenders can deny borrowers in the pre-approval phase is to notice a higher degree of debt. This is because having other financial commitments will compromise a borrower’s risk of paying their dues on time. Even a small increase in debt can make your lending company cautious about pushing through with your contract. This is why you need to minimize your credit usage before finalizing your loan.

Keep in mind that securing your loan isn’t an excuse to take up new debt right away. It’s a whole different matter to /project your future financial expenses than actually paying them. Give yourself time to adjust to your new monthly dues before making any significant purchases.

2. Changing Employment Status

Mortgage companies consider your capacity to pay debt consistently by seeing if you have a sustainable income. It’s one of the most important variables when they take in a borrower. If you change jobs mid-way through a loan application, you can be at risk of losing your current deal and terms.

Changes to your employment don’t always reflect negatively on your current mortgage terms. In fact, getting a job with higher pay won’t benefit you in any way. However, it’s best to consult your mortgage broker before you commit to these career choices or if you should finalize your mortgage first.

3. Altered Credit Score Standings

The changes above can greatly impact your current credit score, depending on your financial situation. Small changes to your credit score won’t disqualify you from securing your current loan terms. However, a considerable drop can cause your mortgage lenders to pull away from the current terms.

Besides losing your current mortgage terms, you will find it much harder to apply for a loan in the market. Since your credit score is significantly lower, you will have to settle for loans with low credit score eligibility with considerably higher mortgage rates. This is why it’s best to maintain your credit score standing at least four months until your mortgage finalization.

Conclusion

Consistency is the key to earning the trust of your lenders. It’s a principle that will remain true from the start of your loan application till the end of your mortgage’s term. This is why you should always be sure about the financial choice you make. Thankfully, you can get a second opinion from credible professionals to back up your decisions.
At Ottawa Mortgage Services, we understand that securing a mortgage is a major milestone in every Canadian’s life. For this reason, it’s our goal to provide the right financial strategies with adequate options in the market. Contact us now for a free consultation!

Buying a house is an important milestone in life since it offers peace of mind and brings you and your family closer to your desired lifestyle. Plus, nothing beats the feeling of being secured and coming home to a house knowing it is all yours. 

Affording a house often means having to secure a mortgage. But to truly enjoy your desired level of comfort in a place you can call home, you may need to select a substantially expensive real estate. This means you are left with no choice but to strive to get approval for a higher mortgage loan. 

To get approval for a loan, good credit scores, assets, and work that pays well are necessary. If you need a more in-depth guide to improving your options, here are several strategies to achieve more borrowing power:

1. Increase Your Income

Increasing your income is an ideal way to boost your chances of getting your loan application approved. This is especially true if your mortgage pre-approval provider isn’t willing to give you your expected full loan amount. You can even ask them upfront what level of income you will need to get a higher mortgage amount.

While increasing your income as soon as possible is not an easy feat, there are some ways to increase your chances of increasing the amount of money you will be pre-approved for. For instance, you might want to consider negotiating for a higher salary with your employer. On the other hand, you might benefit from finding a side hustle and other sources of income. 

If you’ve reached a wall in your current employer, another option is to look for another job that pays better. However, note that your employment’s stability is another factor that lenders consider, so remember that before quitting your current job.

2. Find a Lower Mortgage Rate

Failing to compare rates before getting pre-approved can cost you thousands of dollars more in yearly fees. To find a lower mortgage rate, take your time to look around from various lenders and compare all of your options.

Look for a lender who will approve you for a lower mortgage rate and place a bigger portion of your payments towards the principal. By doing so, you will get lower monthly mortgage payments and reduce the overall cost of your homeownership. 

3. Improve Your Credit Score

Your credit score is a crucial factor when getting a great mortgage rate. It serves as proof of being a responsible debtor to your prospective mortgage lenders. While a good credit score can vouch for your borrowing capability, a lower credit score will cause lenders to be less willing to lend you the money you need. 

Generally, lenders look for a credit score of at least 600 in Canada. To keep your credit score healthy, check your credit score regularly, pay your bills on time and in full as much as possible, and use less than 30 percent of your total credit. 

Conclusion

Searching for your ideal home can be exciting, but it can be discouraging once you see that their prices are more than your maximum budget. If you decide that your best option is to increase your mortgage amount, don’t worry because there are many ways to do so. It’s also advisable to run the numbers to see how much you can afford by reaching out to mortgage specialists and seeking a mortgage loan pre-approval.

Find the best mortgage on the market by reaching out to Ottawa Mortgage Services. Our team can also help you get your mortgage pre-approval letter so you can determine how much you can afford for your property. Contact us for a free no-obligation assessment!