Arranging a Mortgage
As with the UK, to calculate how much of a mortgage you qualify for, lenders will consider items such as you credit rating, your income, the amount of money you have for a down-payment (deposit) and so on.
Mortgages can be arranged through your local bank or credit union or you can use a mortgage broker. It can be argued that using a mortgage broker will save you both time and money. The mortgage broker will discuss all your needs and circumstances then fully explain the options available. They will pull one credit report and use that information to present your file to the lenders. Mortgage brokers have access to rates and products from many banks and lenders across Canada and can often obtain a better rate than you may be able to find on your own. If your file is declined by one lender the mortgage broker will continue to work on your behalf until hopefully finding a suitable lender to finance your purchase. When your mortgage begins the broker usually receives a fee from the bank or financial institution. Therefore, in these circumstances, the broker does not charge any fees to you, the client.
There are many mortgage products available so we suggest reading more via the Canadian Mortgage and Housing Corporation web site at www.cmhc.ca or try British born mortgage broker Storm Smyth - you can email her at storm@garibaldimortgage.com or call 604 848 5560. Storm works for you, not the lender so she will look out for your best interests and help you every step of the way! As she too is oringinally from the UK she will speak in terms you understand!
Visiting websites of the major banks and credit unions will also lead you to mortgage information and calculators.
One tip that we should share on this page – if you are visiting Canada with a view to purchasing a property at some time in the future, it is often useful to have an established bank account up and running. Visit a high street bank while you are here, bring photo ID such as a passport to open an account. Leave a small amount of money deposited in there. While most of the mortgage process and other documentation for home buying can be handled over the internet or via solicitors offices, the issue of opening a bank account for future mortgage payments is best handled while you are here in person – it will save you a lot of hassle further down the line!