Don’t get discouraged about getting beat out in a multiple house-offer situation, get pre-approved!
The key to a strong offer on a house is to BE PREPARED! Your best offensive strategy is to get us income documents up front with your application so we have a clear picture on your situation. Especially disclose if you have been affected by Covid and have reduced income. When we have the inside scoop on your situation, we can provide realistic solutions and options, and you are well prepared to buy a home.
Watch our video on “How to Apply for Pre-Approval Mortgage: The Easy Way With The Mortgage Centre”:
Getting pre-approved for a mortgage is something every potential home buyer should do before shopping for a new home. A pre-approval will give you the confidence of knowing that financing is available, and it can put you in a very positive negotiation position against other home buyers who aren’t pre-approved.
Why Reconsider Variable Rates?
Variable-rate-mortgages (VRM) are a good option if your property is a primary residence and you have low debt-to-income ratios. Why? The Bank of Canada (BofC) made a rate announcement recently that they expect rates are going to be low and steady for at least the next 12 months. Here’s a good article that explains the BofC rate decision –
In addition, 60% of Canadian homeowners break their fixed-rate-mortgage in year three of their term and incur penalties that are always higher for fixed-rates than for VRMs. This means you have to calculate how much interest you pay over the term PLUS the potential penalty amount and not just the month-to-month cost of the fixed-rate vs variable-rate. While the uncertainty of a VRM can seem risky, a good mortgage broker will work with you over the term to proactively manage your mortgage strategy.
Don’t wait to Renew your Mortgage…
Five-year-fixed-rates are close to 2%! Consider redoing your mortgage early even if there’s a penalty and you can benefit from a lower rate!