Posts in category: Residential Mortgage

Do you dream of building your own business? Does the idea of being your own boss and working on your own time appeal to you? Imagine yourself finally breaking free from the confines of a traditional 9-to-5 job. The best part is if your business succeeds, you will be able to earn far more than you would if you were working for someone else.

You’re not alone in this dream. More Canadians are aspiring to leave their traditional professions and embark on their entrepreneurial path. In fact, self-employment now accounts for 15% of Canada’s workforce.

Although self-employment has a lot of perks, it also has its fair share of disadvantages, particularly when applying for mortgage loans as a first-time home buyer in Ottawa. If you’re a self-employed professional or entrepreneur, you may wonder how the mortgage application works for you—especially the part where you have to submit financial documents. 

Approval for self-employed mortgages isn’t impossible, but it is more complicated than for those with regular employment. 

Look at why being self-employed may make your mortgage application more difficult and how to deal with this concern by reading the article. 

Proof of Income

When applying for a mortgage, you need to submit proof of income. And unlike employees who receive a consistent salary each month of each year, self-employed people manage their wages themselves. Moreover, it might take years for a start-up to break even. For improved traction, you may need to invest some of your own revenue back into your firm. This makes it difficult for a potential lender to have faith that you can keep up with monthly payments.

One of the benefits of owning a business is the ability to deduct costs from your taxable income. However, the disadvantage is that it is counterproductive to your mortgage application. It makes your lender question if you’re generating enough money for your loan. 

Additional Paperwork 

It’s a simple process to supply documents when applying for a standard mortgage as a regular employee. Your credit score, certification of employment, pay stubs, and a few other documents may be sufficient. 

But when you’re self-employed, you’ll need to go through a different set of documents to prove to the lender that you’re capable of paying off the loan. Some of these additional documents may include: 

• Personal tax returns for the last two years 
• Notices of Assessments for the past two years
• Up to a year’s worth of bank statements to justify income if specified

Consult With a Reputable Mortgage Advisor 

While you’re busy running your company, your mortgage advisor is your best chance for getting the mortgage situation to work in your favour. As a self-employed individual, you must report both your personal and business financial status. Hire a reputable agent specialising in dealing with company owners to expedite the process and get approved for a mortgage loan. 

Applying for self-employed mortgage services in Ottawa may require additional paperwork, so allow your mortgage agent to guide you through the process.

Conclusion 

When applying for a mortgage as a self-employed individual, know that you can get support from a professional. You’ll encounter a new set of challenges, but if you’re prepared and follow professional advice, you’ll be approved for a mortgage loan in no time.

Ottawa Mortgage Services provide mortgage agent services for first-time homebuyers in Ottawa, including self-employed individuals and commercial clients. We also help with mortgage refinancing, pre-approvals, and debt consolidation. Get in touch with our experts today! 

Debt consolidation loans are there for when you’re experiencing financial difficulty. It’s an easy fix for a debt problem that has piled up, and it’s also ideal for when you want to lower your interest rates and combine all debt into one monthly repayment. 

While it seems like a good idea for most people, getting approved for a debt consolidation loan is not easy. Here are five reasons why people get declined for debt consolidation applications:

You Don’t Have Enough Income to Get Approved

A debt loan payment commonly costs more monthly compared to the minimum payments for credit cards. So, once you realize you’ll benefit more from a consolidation loan, you might only be able to make minimum credit card payments and not another dollar more.

Credit card minimum payments are usually so low that it can take up to decades for you to pay off your balance fully. Moreover, that’s only if you stopped using the credit card to pay for expenses.

Consolidation loans cannot be paid off over a long period unless secured by your home. They’re usually amortized over three to five years, meaning that payments need to be high enough to pay off the loan within that period. If your income cannot handle that much payment, you’ll likely get declined.

There’s a Problem with Your Credit Report and Score

Many credit report and credit score issues prevent people from getting approved for a debt consolidation loan. For instance, late debt payments or debts in collections can damage your credit score. 

High balances owing can also contribute to the issue of getting approved. Since there are so many variables in a debt consolidation loan, you should instead read a detailed explanation of how credit scores are calculated.

You Can’t Present Enough Security or Collateral

Financial institutions generally ask for security or collateral as you apply for a debt consolidation loan. That is especially important if you’re someone who’s having a hard time managing all your payments. These institutions only want to make sure that you can make repayments for the amount they’ll lend you.

When you don’t have anything to offer as collateral, you might think about using a credit card to pay off your other debts at a high interest rate instead. Meanwhile, other people apply for an unsecured loan from a finance company at sky-high rates, sometimes as high as 30 percent.

So, if your goal is to reduce debt, then these choices don’t offer a viable alternative. That is because a large portion of your debt payment will end up on the interest rate, and not on principle. 

Conclusion

Applying for a debt consolidation loan, much like any other loan, involves a lot of factors. If you cannot meet most requirements, you’ll likely get declined. Financial institutions want to make sure that lending you money is worth it on their part, so if they’re not convinced that you can meet monthly repayments for the loan you’re getting, they won’t approve your application. 

Ottawa Mortgage Services provides mortgage agent services for first-time homebuyers, self-employed individuals, and commercial clients. We also help those applying for refinancing, pre-approvals, and debt consolidation loans. So if you’re looking for the best debt consolidation loans in Ottawa, ON, apply with us today! 

You have heard of the adage “cash is king,” and you may agree on this, but how do you think it applies when it comes to buying a house? This may be something that you haven’t thought about before, but it’s certainly worth considering. And in this post, Ottawa Mortgage Services will tell you why: 

The Obvious Reason

When you are ready to pay cash for the house, you have the edge over other interested buyers because the seller will be motivated to close the deal with you. This can be helpful, especially if several bidders are competing for the house you like.

That said, you should know that while paying cash for a home makes sense for many people in specific real estate markets, it might not be the best option for some. This downside includes getting a huge chunk of your investment capital tied up with a single asset class. It also means you’re sacrificing liquidity. 

The Process of Purchasing a Property with Cash

The first step in purchasing a property all in cash is raising the amount that you need. Unless you already have the money ready in your bank, you’ll likely have to liquidate other assets and have the proceeds deposited into your bank account. 

The seller might ask for proof that you do have the cash, like a bank statement. After that, the process is pretty much the same as how it is when you buy a home with a mortgage, except that there won’t be a mortgage lender in the picture. 

Pros of Paying All Cash for a Property

You’ll Be a More Attractive Buyer

As mentioned earlier, sellers are more interested in buyers who don’t need to apply for a mortgage to make the purchase. You are likely to be taken more seriously when you can prove that you can buy their house in cash. 

You’re Likely to Get a Better Deal

Because you’re more appealing to sellers, you are in a better position to get yourself an excellent deal. This is especially the case if the seller needs to sell the house fast. 

You Won’t Have to Worry About Applying for a Mortgage (and Paying for It)

A mortgage application requires a lot of documents – from proof of income to records of credit history. The process can be tedious, especially if you don’t have those documents ready. There are mortgage companies that are not too strict with the approval process, but they’re still going to request the necessary documentation from you.  

If you pay for the house in cash, you won’t have to worry about monthly payments for many years either. 

Cons of Paying All Cash for a New Property

You’ll Tie Up All Your Money in One Asset Class

If the amount needed for the new house equates to most of your savings, then you’d be breaking one of the rules of smart personal finance, which is diversification. Also, the ROI of residential real estate lags behind stocks and other types of assets. 

You’ll Lose the Financial Leverage You Can Get From a Mortgage

When you buy a property using borrowed money, the potential return is higher. That is assuming the property increases in value over time. Note that this could go the other way, too, if your home’s value declines. Of course, that may not matter if you’re planning to live in the house anyway. 

You’ll Give Up Liquidity

Liquidity refers to how fast you can turn your investment into cash if you need to. One example would be your savings in the bank, which you can get in cash almost instantly. Brokerage and mutual funds could take longer, but they can still be turned into cash when needed. A home, on the other hand, can take months to even years to sell. 

Conclusion

We want to impart with you in this post that the idea of paying for your next home all in cash should be approached with consideration. There are pros and cons to it, and depending on your particular situation, it could be the right solution for you or not. You need to weigh things carefully. You should also speak to a reputable company that offers excellent mortgage services to know if there are more desirable options than paying for a home in cash. 

Ottawa Mortgage Services can answer all your questions about mortgages and provide help with pre-approval, refinancing, and more. Contact us today to know more about our expert mortgage services!

If you were to ask experienced mortgage brokers in Ottawa, such as Ottawa Mortgage Services, you will learn that you must renew your mortgage at least once before paying it off. As the term mortgage renewal implies, it is the process of re-evaluating your mortgage’s outstanding balance. And most importantly, it involves renewing it for another term at a new rate, which is hopefully lower than before.

There are instances when people pencil their maturity date onto their calendars to know when their mortgage term ends. However, if you didn’t do the same, you will know it’s time to renew when you receive a renewal slip in the mail from your current mortgage provider.

While you may wait for your mortgage provider to send you your renewal slip, there is a better way of navigating your mortgage renewal process. Read on to learn the top three mortgage renewal tips to help you:

Tip #1: Renew Your Mortgage Early

You might think that you have a few months more before the maturity of your mortgage, so you won’t bother applying for a renewal just yet. However, it will be best if you start to shop around early.

It’s possible to negotiate with your current lender as early as 120 days before your maturity date. The best thing about renewing your mortgage early is that in case you can’t negotiate a better offer from your lender, you have a lot of time to look for a new one. 

Tip #2: Negotiate for a Better Mortgage Rate

Once you receive your mortgage renewal slip, you will have to pay for its convenience. You may no longer have any choice but to do so, and that’s often a tactic used by certain lenders. It would also help you if you knew that mortgage providers only discount their posted rate on a renewal slip with the lowest possible rate. 

Due to these circumstances, it’s best to try negotiating your mortgage renewal to get a lower rate. Don’t be like others who are too afraid to try asking for an adjustment to their payment terms. In case your lender cannot or will not offer you one, you have your choice to shop around and switch providers within your renewal window.

Tip #3: Keep Track of Your Financial Goals

It’s crucial to review your financial goals before you consider signing your mortgage renewal slip and eventually send it back. Doing so will ensure that your current provider offers what you need. 

For instance, if you have a mortgage term of five years now, your renewal slip will likely be fixed for another five years. Good for you if you’ll stay in that property for that amount of time. Otherwise, you may consider looking for a mortgage term that is a three-year fixed rate instead.

Final Thoughts

It’s easy to renew a mortgage with your current lender, but signing a renewal slip and sending it back may not be the best option for you. If you consider following these three tips at mortgage renewal time, you may be able to make better choices and get a better deal.

If you need help with your mortgage decisions, get the best lender like the Ottawa Mortgage Services that offers the best mortgage refinance rates in Ottawa. We provide mortgage agent services for first-time homebuyers, commercial agents, and self-employed individuals. Contact our experts today for all of your needs!

Are you researching mortgage options for your dream home? You’ve most likely come across many different choices, including four- or five-year fixed mortgages. Five-year rates are currently more competitive than ever, but shorter-term rates are making a comeback, with some really attractive bargains. To attract attention, some lenders may offer a 3 or 4-year special rate that is lower than the 5-year fixed rate.

The lowest pricing attracts a lot of future homeowners. However, getting the lowest rate for a certain period does not always mean you will be getting the cheapest mortgage. If that were the case, 100 percent of those looking for a mortgage would pick variables over fixed since the rate is cheaper.

If you’re not sure which mortgage is right for you, this article will walk you through the many factors to consider.

Changes in Rates

Rates are presently at record lows because of the COVID-19 pandemic. Today’s 3.34 percent on a 5-year fixed rate was deemed a terrific deal in the summer of 2018. There’s a good chance that rates will rise from where they are now. However, we can’t anticipate pandemic rates to continue indefinitely.

By opting for a shorter term, you are foregoing one to two years of assured low rate protection in exchange for a slightly cheaper short-term rate. The cheaper rate may appear to be a good option right now, but it might wind up being a pricey move depending on where rates are at renewal time.

Your Own Needs

Another question is how long you believe the new mortgage will be enough for your needs. Many people believe they won’t need another mortgage for at least another five years, but things can and do change. If rates were to decrease significantly, consumers could desire to break early. Unfortunately, some people may be forced to refinance or sell ahead of schedule.

Comparisons

Let’s assume you had a choice between a 1.79 percent 5-year fixed rate and a 1.64 percent 4-year fixed rate. In this example, the break-even rate is 2.48 percent, which implies that the 1 year fixed rate upon renewal, to round out the 5 years, would have to be less than 2.48 percent for the shorter term mortgage to be the less expensive choice. If the rates were higher, you would have been better off going with the five-year fixed option.

Your Current Situation

Everyone’s circumstance is different. Many people will tell you to always go variable or always go fixed, but it doesn’t always mean either one is the best option for you. People will give advice depending on their personal circumstances, risk tolerance, and so forth. It’s what they believe is best for them, so they automatically assume it’s best for others. 

Because each circumstance is unique, the perfect mortgage may change from one individual to the next. It will always be adapted to their specific requirements and objectives.

Conclusion

There was a period when shorter-term mortgages had cheaper interest rates than longer-term loans. The lowest prices in recent years, however, were nearly invariably for 5-year terms. As a result, demand for shorter-term mortgages has virtually vanished.

When looking at mortgage rates, most individuals choose for 5-year periods because they are the most common. This isn’t to say that a five-year loan is suitable for everyone; in certain situations, a shorter loan makes more sense. It will all be determined by your own requirements, preferences, and financial resources. You may always get advice from a mortgage professional to determine which choice is best for you.

Are you a first-time home buyer in Ottawa? Well, Ottawa Mortgage Services can help you. We provide mortgage agent services for first-time homebuyers, self-employed individuals, and commercial clients. We also help with refinancing, pre-approvals, and debt consolidation. Talk to us now.

When looking to buy a home quickly, the smart thing to do is to get a preapproved letter from a mortgage lender. To the seller, this means that you are serious about the purchase, causing them to take you a lot more seriously. This is a great advantage to have, especially if other buyers are competing with you. In the end, it can be the difference between securing a home or walking away empty-handed.

That being said, we want to talk more about preapproved letters—why it’s so important, how long it will take to get one, and more.

Why Are Preapproved Letters Important?

As mentioned in the introduction, a preapproved mortgage letter is essential simply because it proves you have gone and looked through your finances. To the seller, this means that you are serious about the purchase and have figured out that you can buy the home. This is a big benefit to you, especially against another buyer that has yet to have a mortgage letter to show to the seller.

How Long Does It Take To Get a Preapproved Letter?

If you initially thought that a preapproved letter takes weeks to get, you’re mistaken. Online inquiries typically take only a few minutes to complete, and you might find yourself waiting for approximately a week to get your letter. However, if you are lucky, you might just get a response within the same day!

Regardless of how long it takes, you should be applying for a preapproval mortgage letter as soon as possible. This way, you can get the letter needed to secure the home you are interested in buying a lot earlier.

What Happens If the Preapproved Amount Is More than the Home Price?

Sometimes, there’s a chance that you might be preapproved for more than you need to buy a home. While there is certainly nothing wrong with this, be wary that the seller might try and take advantage of that amount. If you want to fix the amount, you can contact the lender to readjust the letter amount.

How Can I Make Sure That the Preapproved Amount Aligns with My Budget?

One worry you might have is paying more for a large preapproved amount that you may not necessarily need. To ensure that the amount stated on the letter isn’t the maximum amount you’re eligible for but the amount you’re comfortable paying, work closely with the lender. This way, you can strike a balance between how much you qualify for and how much you are willing to pay.

Conclusion

Simply put, if you are looking to buy a house, do yourself a favour and get preapproved for a mortgage. This way, not only do you know that you qualify for a mortgage when you do want to buy a home, but you can realize how much you qualify for to help you pick the suitable homes that fit your budget. That said, always spend the time to look for professional and trustworthy lenders to work with and compare different mortgages against each other. In doing so, you stand a higher chance of being qualified for the right mortgage that helps to purchase your home and save as much money as possible.

Ottawa Mortgage Services provides mortgage agent services to help first-time homebuyers, commercial clients, and self-employed individuals get the mortgage solutions they need and more. Apply with us today and get the mortgage you need!

Getting a mortgage for your home may be as simple as providing a pay stub and a job letter as two forms of requirements. Sure, there are other prerequisites right after that, but the laundry list of requirements for the typical employee is usually accessible and easy to accomplish. However, there is a different story when it comes to self-employed Canadians.

They will have to go through stricter measures to prove that they can pay the mortgage amount monthly. They will need to show their credentials and various validations to show that they are not a scammer hoping to get an easy score over the mortgage agent.

With that said, there are quite a few ways for you to prove that you are serious about the mortgage and that your stature of being self-employed will not affect your ability to pay on time. The following tips may just help you out in the long run:

1. Do Your Best to Improve Your Credit Score

Even with the roadblock of being a self-employed home buyer, you are still allowed to prove yourself through your credit scores. The thing about credit scores is that they will mainly reflect the habits and attitudes of the borrower. If you have a high credit score, it will say so much about your character as a person who never sleeps until they pay off all their debt, and neither are they lazy or laid back when it comes to their financial obligations. 

Think about it, who do you think the lender will most likely vouch for? Is it the person who has a high credit score but has no definite corporate employer? Or is it the person that is traditionally employed yet, has a bad credit score that will scare off many lenders by nature?

2. Save All of Your Tax Records

A person who pays off all their taxes is trustworthy in all regards. While taxes can be challenging to work with, they offer the best for you to get in the good graces of lenders, especially if you are self-employed. If you have no debt with other lenders and the government, you will be able to prove that you can regularly pay without any form of hassle. 

Government-implemented taxes tend to increase prices in one way or the other. If you can show the lender that you had no problem paying for that consistently, they may be impressed with your determination and attitude towards paying.

3. Establish Your Own Venture Well

Being self-employed has its perks, but it also means that you should handle all your transactions appropriately. You must not run your business to the ground—otherwise, it may give off a negative impression of you. 

If the lender sees your motivation and leadership firsthand through your business records and sales figures, they will have no problem approving your mortgage on the spot.

Conclusion

These mortgage tips will not only improve your chances of getting a good mortgage amount but may also break the stereotype when it comes to self-employed home buyers. People who aren’t traditionally employed don’t always equate to people with common financial problems. 

Some of today’s most successful entrepreneurs started small, pushing their businesses towards success with the right attitude and determination. If you can showcase that, along with the other tips that we’ve given above, you may very well be on your way to getting that well-needed mortgage approval.

If you are looking for a well-trusted mortgage agent in Ottawa to handle your mortgage application for you, look no further than Ottawa Mortgage Services. We also specialize in refinancing, pre-approvals, and debt consolidation, among other things. Contact us today and let us discuss your financial options.

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!