Mortgage Insurance: What Is It? How Much Does It Really Cost?
New To Canada? Here’s What You Need To Know About Mortgage Shopping
Whether you’re new to Canada or planning to move here in the near future, you’re likely eager to start your new life. But navigating the Canadian mortgage landscape can seem daunting, especially if you’re new to the process.
What to look for when choosing a mortgage provider
Once you’ve saved enough for your down payment and closing costs, you’ll need to find a mortgage provider to finance your loan. It’s important to consider several factors when choosing a mortgage provider. Here’s what you should look for:
Interest rates
A mortgage provider’s interest rate is one of the first, and most important, factors to look at when securing a mortgage. Lower interest rates mean you’ll pay less over the lifetime of your mortgage, so it’s always wise to comparison shop instead of going with the first provider you find. Be sure to shop around so you can feel confident you’re getting a competitive rate.
Pre-approval process
Before you begin your house-hunting journey, it’s a good idea to get pre-approved for a mortgage first. This will help you know exactly how much you can afford to spend and narrow down your options so you don’t waste time on properties that are out of your price range. Having a pre-approval letter from a reputable mortgage provider will also give you a leg-up when making an offer, as it shows sellers you have the financial means to buy their home.
Terms and conditions
There are several terms and conditions associated with mortgages that can impact your financial situation. These include the mortgage term (i.e. how long you’re required to stay with the lender), the type of interest rate (fixed or variable), plus any penalties for prepayment or early termination. Always make sure to ask questions to ensure you know exactly what you’re agreeing to. You’ll also want to review all the terms and conditions with your lawyer for further assurance and peace of mind.
Specialized lending programs
It can be challenging setting up your finances in a new country, especially if you haven’t established a credit history in Canada yet. When comparing mortgage lenders, be sure to ask if they approve mortgage loans for newcomers—including ones who don’t have a Canadian credit history. The good news is that there are lenders who not only recognize and value your credit history from your home country, they’ll also help you set up a financial foundation in Canada (either before you move or after you arrive), ultimately easing your transition.
Knowledgeable specialists
Whether you’re new to the mortgage process in general or just new to the process in Canada, you’ll want to make sure you have an experienced mortgage advisor in your corner. That’s why it’s essential to work with a dependable mortgage provider, which will have a team of mortgage specialists who can help walk you through the process every step of the way. Choosing a reputable provider gives you the comfort of knowing that you’re not just getting the best possible deal, you’re also working with experienced specialists you can trust. Knowledgeable specialists are available to offer personalized advice tailored to your specific situation, and answer any questions you may have.
Your dream of owning a home in Canada can become a reality
It may seem overwhelming to purchase a home in Canada as a newcomer to the country, but with a little planning and research, you can make your dreams a reality. Take the time to think about your options and make an informed decision based on your unique needs.
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