Exploring Your Options: What Should You Use for a Down Payment to Buy a House in Canada?

General Jay Vyas 1 Jul

Introduction:

Purchasing a house is an exciting milestone in life, but one of the key considerations is how to fund your down payment. In Canada, there are various options available to potential homebuyers, each with its own advantages and considerations. In this blog post, we will explore some common sources that you can use for a down payment when buying a house in Canada. By understanding these options, you can make an informed decision that aligns with your financial goals and aspirations of homeownership.

1. Personal Savings:
Using personal savings is often the most straightforward and common approach to funding a down payment. By diligently saving over time, you can accumulate the necessary funds to make a significant contribution towards your home purchase. Saving early and regularly allows you to take advantage of compound interest and potential investment growth, making it a reliable and secure option.

2. Homebuyer’s Plan (HBP):
The Homebuyer’s Plan is a government program in Canada that allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) without incurring tax penalties. This option can be beneficial as it provides access to funds that have already received tax advantages. However, it is important to consider the impact on your retirement savings and ensure you have a plan to repay the withdrawn amount within the specified time frame.

3. Gifted Down Payment:
Another option available to homebuyers is receiving a gifted down payment from a family member. Many lenders accept gifted funds as a down payment, but they often require a signed gift letter to confirm that the funds are a non-repayable gift. This can be a valuable option for individuals who may not have sufficient personal savings but have generous family members willing to assist in their homebuying journey.

4. Tax-Free Savings Account (TFSA):
The TFSA is a versatile savings vehicle that can be used for a down payment. Contributions to a TFSA are made with after-tax income, and any growth or withdrawals are tax-free. By maximizing your TFSA contributions over time, you can build a substantial down payment while enjoying the flexibility of accessing your funds without tax implications.

5. Down Payment Assistance Programs:
Various down payment assistance programs are available in Canada, especially for first-time homebuyers. These programs, offered by government agencies, non-profit organizations, or municipalities, provide financial assistance or incentives to eligible buyers. It is crucial to research and understand the specific requirements and conditions of each program to determine if you qualify and how they can help you achieve your homeownership goals.

Conclusion:
When it comes to financing a down payment for buying a house in Canada, there are several options to consider. Whether you choose to use personal savings, leverage the Homebuyer’s Plan, receive a gifted down payment, utilize a TFSA, or explore down payment assistance programs, it’s essential to evaluate each option’s benefits and potential implications for your financial situation.

Every homebuyer’s circumstances are unique, so take the time to assess your long-term goals, financial capabilities, and comfort level with each option. Consulting with a mortgage professional or financial advisor can provide valuable insights and guidance to help you make an informed decision. Remember, choosing the right down payment source sets the foundation for your homeownership journey, ensuring you start on a solid footing towards achieving your dream of owning a home in Canada.

Contact Us to help you get your mortgage needs today at Dominion Lending Centres Better Rate Mortgage.

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

Disclaimer: The information provided in this blog post is for informational purposes only and should not be considered financial or legal advice. Consult with a qualified professional before making any financial decisions.

Unlocking Financial Freedom: The Benefits of My Mortgage Toolbox (MMT)

General Jay Vyas 23 Jun

Introduction:

In today’s fast-paced world, where time is of the essence, we’re always on the lookout for tools that simplify our lives and empower us to make smarter financial decisions. When it comes to mortgages, having a comprehensive and user-friendly solution at your fingertips can be a game-changer. That’s where My Mortgage Toolbox (MMT) steps in. In this blog post, we’ll delve into the remarkable benefits of MMT and how it can unlock financial freedom for homeowners and prospective buyers alike.

1. Streamlined Mortgage Management:

One of the key advantages of MMT is its ability to streamline the entire mortgage management process. From loan selection to payment management, MMT centralizes all aspects of your mortgage journey into a single, intuitive platform. Instead of juggling multiple tools or drowning in paperwork, MMT provides a seamless experience, allowing you to focus on what matters most—building your future.

2. Time and Effort Savings:

Gone are the days of spending countless hours researching mortgage options and shuffling through stacks of documents. MMT harnesses the power of automation and technology to save you time and effort. By aggregating data from various lenders and providing real-time comparisons, MMT helps you find the best loan for your unique needs and financial situation. Additionally, its document management feature eliminates the stress of hunting for important paperwork by securely storing all your mortgage-related documents in one place.

3. Financial Visibility and Control:

MMT puts you in the driver’s seat of your mortgage journey, offering unparalleled financial visibility and control. With its robust payment management system, you can set up automatic payments, track your payment history, and stay on top of your financial obligations effortlessly. MMT also provides tools and calculators to help you explore different payment scenarios, estimate the impact of additional payments, and even consider refinancing options. This level of control empowers you to make informed decisions that align with your financial goals and aspirations.

4. Enhanced Financial Planning:

Managing a mortgage is not just about the present; it’s also about planning for the future. MMT equips you with the tools and insights to make well-informed decisions regarding your mortgage. By monitoring market trends and interest rate fluctuations, MMT helps you identify potential opportunities for refinancing or adjusting your mortgage terms. This can translate into substantial savings over time, allowing you to redirect those funds toward other financial goals, such as investments, renovations, or even early mortgage payoff.

5. Access to Expert Guidance:

While MMT offers a wealth of features and resources, it understands that personal expertise can sometimes make a significant difference. That’s why MMT provides access to a network of mortgage professionals who can offer guidance and answer any questions you may have. Whether you’re a first-time homebuyer or a seasoned homeowner, having an expert by your side can provide peace of mind and ensure that you’re making the most informed decisions throughout your mortgage journey.

Conclusion:

My Mortgage Toolbox (MMT) is a powerful tool that transforms the way we manage our mortgages. By simplifying the process, saving time and effort, and offering unparalleled financial visibility and control, MMT unlocks financial freedom for homeowners and prospective buyers. With MMT, you can navigate the complex mortgage landscape with confidence, make informed decisions, and work toward your long-term financial goals. Embrace the power of MMT and embark on a journey of financial empowerment and success!

Check out my free mortgage app. It includes everything you need to estimate your home ownership costs. You can also reach me at 519-572-5004 or jvyas@dominionlending.ca

My Mortgage Toolbox (MMT)

Contact Us to help you get your mortgage needs today at Dominion Lending Centres Better Rate Mortgage.

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

Disclaimer: The information provided in this blog post is for informational purposes only and should not be considered financial or legal advice. Consult with a qualified professional before making any financial decisions.

Mastering the Path to Homeownership: Financial Preparation in Canada

General Jay Vyas 14 Jun

Introduction:
Buying a home is a significant milestone that many Canadians aspire to achieve. However, the road to homeownership can be paved with financial challenges and uncertainties. To make your dream of owning a home in Canada a reality, careful financial preparation is crucial. In this blog post, we will guide you through essential steps and practical tips to help you lay a strong foundation for your home purchase journey.

1. Set Clear Financial Goals:
Before embarking on your homeownership journey, it’s essential to establish clear financial goals. Determine your budget, evaluate your current financial situation, and set a realistic target for the down payment and monthly mortgage payments. Consider your income, expenses, and existing debts to gain a comprehensive understanding of your financial capabilities.

2. Improve Your Credit Score:
A healthy credit score plays a vital role in securing favorable mortgage terms. Start by obtaining a copy of your credit report and review it for any errors or discrepancies. Pay off outstanding debts, consistently pay bills on time, and avoid taking on new debts to improve your creditworthiness. A higher credit score will enhance your chances of qualifying for a mortgage at a competitive interest rate.

3. Save for a Down Payment:
Saving for a down payment is often the biggest hurdle for aspiring homeowners. Create a dedicated savings plan to accumulate funds for your down payment, which typically ranges from 5% to 20% of the home’s purchase price. Automate your savings by setting up automatic transfers from your paycheck to a separate savings account. Explore government programs like the Home Buyers’ Plan (HBP), which allows first-time buyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) without penalty.

4. Budget for Additional Costs:
In addition to the down payment, it’s important to account for other costs associated with homeownership. These may include home inspections, legal fees, property taxes, moving expenses, and home insurance. Plan ahead and factor these expenses into your budget to avoid any surprises along the way.

5. Research Mortgage Options:
Take the time to research different mortgage options available in Canada. Consult with multiple lenders and compare their interest rates, terms, and conditions. Decide whether a fixed-rate or variable-rate mortgage suits your financial goals and risk tolerance. Don’t hesitate to seek advice from a mortgage broker who can guide you through the process and help you find the most suitable mortgage product for your needs.

6. Consider Pre-approval:
Getting pre-approved for a mortgage can provide you with a competitive advantage when searching for your dream home. Pre-approval demonstrates to sellers that you are a serious buyer and have the financial means to make a purchase. It also allows you to understand your borrowing capacity and set realistic expectations when house hunting.

7. Plan for Future Expenses:
Once you become a homeowner, it’s important to plan for future expenses to ensure you can comfortably afford homeownership in the long run. Budget for ongoing maintenance costs, property taxes, utilities, and potential repairs. Building an emergency fund will provide a safety net and peace of mind during unexpected situations.

Conclusion:
Preparing yourself financially for homeownership in Canada requires careful planning, commitment, and discipline. By setting clear goals, improving your credit score, saving diligently, and researching mortgage options, you can pave the way to a successful home purchase. Remember, the journey to homeownership may not always be easy, but with the right financial preparation, you can turn your dream of owning a home into a reality. Start taking those steps today and unlock the doors to your future home.

Contact Us to help you get your mortgage Pre-Approval today at Dominion Lending Centres Better Rate Mortgage.

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

Pre-Qualification vs. Pre-Approval: Understanding the Difference for Mortgages in Canada

General Jay Vyas 4 Jun

Introduction:

When it comes to securing a mortgage in Canada, understanding the terminology and processes involved can be crucial. Two terms that often come up in mortgage discussions are “pre-qualification” and “pre-approval.” While they may sound similar, these terms represent different stages in the mortgage application process. In this blog post, we’ll delve into the differences between pre-qualification and pre-approval, helping you make informed decisions on your path to homeownership.

1. Pre-Qualification:

Pre-qualification is an initial assessment of your borrowing potential. It involves providing a mortgage professional with some basic financial information, such as your income, debts, and assets. Based on this information, the mortgage professional can provide you with an estimate of how much you may be able to borrow. Pre-qualification typically does not involve a thorough review of your credit history or verification of the information you provide.

Key Points:
– Pre-qualification is a quick and simple process.
– It provides an approximate idea of the mortgage amount you may be eligible for.
– Pre-qualification does not guarantee loan approval or interest rates.

2. Pre-Approval:

Pre-approval takes the mortgage application process a step further. It involves a more comprehensive assessment of your financial situation, including an in-depth review of your credit history, income documentation, and employment verification. During the pre-approval process, the lender will typically request additional supporting documents, such as bank statements and tax returns.

Key Points:
– Pre-approval provides a more accurate assessment of your borrowing capacity.
– It involves a thorough credit check and verification of your financial information.
– Pre-approval provides a conditional commitment from the lender, including an interest rate guarantee for a specified period.

3. Benefits of Pre-Qualification:

While pre-qualification is not as comprehensive as pre-approval, it still offers several benefits:
– It helps you understand the approximate mortgage amount you may be eligible for, giving you a starting point in your home search.
– Pre-qualification can be done quickly and easily, allowing you to assess your options and plan your budget accordingly.
– It gives you an opportunity to discuss your financial situation with a mortgage professional and address any concerns or questions you may have.

4. Benefits of Pre-Approval:

Pre-approval offers more advantages compared to pre-qualification:
– It provides a more accurate assessment of your borrowing capacity, taking into account your credit history and employment stability.
– Pre-approval strengthens your position as a buyer, demonstrating to sellers that you are serious and financially qualified to purchase a home.
– With a pre-approval, you have a clear understanding of your maximum budget, helping you narrow down your home search and negotiate confidently.

Conclusion:

When it comes to the mortgage application process in Canada, understanding the differences between pre-qualification and pre-approval is essential. While pre-qualification provides a general idea of your borrowing capacity, pre-approval offers a more detailed assessment and a conditional commitment from the lender. By taking the necessary steps to get pre-approved, you can enhance your home buying journey, streamline the process, and increase your chances of securing the mortgage you need to achieve your homeownership dreams.

Remember, every lender may have specific criteria for pre-qualification and pre-approval, so it’s important to consult with a mortgage professional to understand the process and requirements that apply to your situation. Happy house hunting!

Contact Us to help you get your mortgage Pre-Approval today at Dominion Lending Centres Better Rate Mortgage.

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

Disclaimer: The information provided in this blog post is for informational purposes only and should not be considered financial or legal advice. Consult with a qualified professional before making any financial decisions.

Unveiling the Impact of Credit History on Mortgage Rates in Canada

General Jay Vyas 28 May

Introduction:

When it comes to financing your dream home, securing a mortgage with a favorable interest rate is of utmost importance. As you embark on this exciting journey, one crucial factor that significantly influences your mortgage rate in Canada is your credit history. In this blog post, we will delve into the intricacies of how your credit history affects mortgage rates and why it plays a pivotal role in shaping your borrowing costs.

Understanding Credit History:

Before we dive into the relationship between credit history and mortgage rates, let’s first establish a clear understanding of credit history. Your credit history reflects your past borrowing behavior and financial responsibility, and it is used by lenders to assess your creditworthiness. Factors such as your payment history, credit utilization, length of credit history, and types of credit all contribute to your credit score, which in turn, impacts your mortgage eligibility and interest rates.

The Significance of Credit History in Mortgage Rates:

In Canada, lenders consider credit history as a key determinant when assessing the risk associated with granting a mortgage. A solid credit history reassures lenders that you have a proven track record of responsibly managing your financial obligations. On the other hand, a poor credit history or low credit score may raise concerns about your ability to make timely mortgage payments, leading lenders to view you as a higher risk borrower.

Impact on Interest Rates:

Credit history directly influences the interest rate you receive on your mortgage. Lenders typically offer more favorable interest rates to borrowers with excellent credit history, while those with lower credit scores may face higher interest rates or even struggle to secure a mortgage altogether. The rationale behind this is that lenders mitigate their risk by charging higher interest rates to borrowers with a less favorable credit history.

Credit Score Thresholds:

Credit score thresholds may vary among lenders, but generally, a credit score above 700 is considered excellent in Canada. Borrowers with excellent credit scores can expect to receive the lowest mortgage rates available. However, if your credit score falls below this threshold, you may still qualify for a mortgage, albeit with a higher interest rate. It is essential to note that even a few percentage points difference in interest rates can significantly impact the overall cost of your mortgage over its duration.

Steps to Improve Your Credit History:

If your credit history is less than stellar, don’t despair! There are steps you can take to improve it and secure a more favorable mortgage rate. Start by paying your bills on time, reducing your credit card balances, and avoiding new debt. It is also advisable to review your credit report regularly for any errors and have them corrected promptly. Building a solid credit history takes time and effort, but the benefits of lower mortgage rates make it a worthy endeavor.

Conclusion:

Your credit history holds significant sway over the mortgage rate you will receive in Canada. By demonstrating financial responsibility and maintaining a good credit score, you enhance your chances of securing a mortgage with a lower interest rate, ultimately saving you thousands of dollars over the life of your loan. Take proactive steps to improve your credit history, and remember that it’s never too late to start building a positive credit profile. A diligent approach to managing your credit will undoubtedly pay dividends when it’s time to realize your homeownership dreams.

Contact Us to help you get your mortgage financing needs at Dominion Lending Centres Better Rate Mortgage.

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

7 Steps to Home Financing in Canada: Your Guide to Achieving Your Dream Home

General Jay Vyas 20 May

Introduction:

Owning a home is a significant milestone for many Canadians. It represents stability, independence, and a sense of accomplishment. However, the process of financing a home can seem overwhelming, especially for first-time buyers. Understanding the steps involved in home financing is crucial to ensure a smooth and successful experience. In this blog, we will walk you through seven essential steps to help you navigate the home financing process in Canada and turn your dream of homeownership into a reality.

Step 1: Assess Your Financial Situation: Before embarking on your journey to homeownership, it’s important to assess your financial health. Take a close look at your income, expenses, savings, and credit score. Calculate your debt-to-income ratio to determine how much you can afford to borrow. Understanding your financial situation will provide a realistic picture of your purchasing power and help you set a budget for your new home.

Step 2: Save for a Down Payment: Saving for a down payment is a crucial aspect of home financing. In Canada, a minimum down payment of 5% is typically required for the purchase price of a home. However, a larger down payment can help you secure better mortgage rates and reduce your overall debt. Create a savings plan and consider various options, such as a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP), to accumulate the necessary funds for your down payment.

Step 3: Get Pre-Approved for a Mortgage: Obtaining a mortgage pre-approval will give you a clear understanding of how much you can borrow from a lender. This step involves providing your financial information, including income, assets, and liabilities, to a mortgage professional who will assess your eligibility. A pre-approval letter will demonstrate to sellers that you are a serious buyer and give you an advantage in competitive housing markets.

Step 4: Research and Compare Mortgage Options: Take the time to research and compare different mortgage options available to you. Consider factors such as interest rates, repayment terms, and mortgage types (fixed-rate, variable-rate, or hybrid). Consult with multiple lenders and mortgage brokers to ensure you find the most suitable mortgage product that aligns with your financial goals and preferences.

Step 5: Secure Your Mortgage: Once you have selected a mortgage product and lender, it’s time to secure your mortgage. You will need to provide the necessary documentation, such as proof of income, employment verification, and details about the property you intend to purchase. The lender will evaluate your application, conduct a property appraisal, and verify your financial information. If approved, you will receive a mortgage commitment outlining the terms and conditions of your loan.

Step 6: Hire a Real Estate Lawyer: A real estate lawyer plays a vital role in the home financing process. They will review your mortgage agreement, ensure all legal aspects of the transaction are in order, and facilitate the transfer of funds between parties. Engaging a reputable and experienced real estate lawyer will safeguard your interests and ensure a smooth closing process.

Step 7: Complete the Purchase: Congratulations! You have reached the final step of your home financing journey. On the closing day, your lawyer will oversee the transfer of funds, registration of the property in your name, and completion of all legal paperwork. Once everything is finalized, you will receive the keys to your new home. Remember to conduct a thorough inspection before taking possession and celebrate this exciting milestone in your life.

Conclusion:

Navigating the home financing process in Canada may seem complex, but by following these seven steps, you can streamline the journey towards homeownership. Assess your financial situation, save for a down payment, secure a mortgage, and consult with professionals to ensure a successful and rewarding experience. With proper planning and guidance, you’ll be well on your way to turning your dream of owning a home in Canada into a tangible reality. Happy house hunting!

Contact Us to help you get your mortgage financing needs at Dominion Lending Centres Better Rate Mortgage.

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

The Ultimate Guide: Navigating the Mortgage Process as a Newcomer to Canada

General Jay Vyas 11 May

Introduction: Moving to a new country is an exciting adventure filled with endless possibilities. As you settle into your new life in Canada, one significant milestone you might encounter is purchasing a home. Understanding the mortgage process is crucial for newcomers to Canada, as it can pave the way for achieving your dream of owning a house. In this comprehensive guide, we’ll walk you through the essential aspects of the Canadian mortgage process, empowering you to make informed decisions and embark on your homeownership journey with confidence.

Establishing Your Financial Foundation: Before diving into the mortgage process, it’s essential to assess and solidify your financial standing. Here are a few crucial steps:

a) Build Credit History: Establishing a good credit history in Canada is crucial. Begin by opening a Canadian bank account and obtaining a credit card. Make timely payments and keep your credit utilization low.

b) Employment and Income: Lenders will assess your income stability. Ensure you have a steady job or a consistent source of income, as it demonstrates your ability to make mortgage payments.

Understanding Mortgage Types: In Canada, you’ll come across different mortgage options. Familiarize yourself with the two primary types:

a) Fixed-Rate Mortgage: This mortgage offers a set interest rate over a specific term. It provides stability and allows you to plan your budget accurately.

b) Variable-Rate Mortgage: The interest rate for this mortgage fluctuates with market conditions. While it may offer lower rates initially, it can be riskier as your monthly payments can increase or decrease depending on interest rate fluctuations.

Mortgage Pre-Approval: Before beginning your house-hunting journey, obtaining a mortgage pre-approval is highly recommended. Benefits of pre-approval include:

a) Budgeting: Knowing your pre-approved mortgage amount helps you establish a realistic budget and focus your search on properties within your financial reach.

b) Negotiating Power: Pre-approval strengthens your bargaining position when making an offer on a property, as sellers perceive you as a serious buyer.

Working with a Mortgage Broker: Consider enlisting the services of a mortgage broker, who acts as an intermediary between you and the lenders. Here’s why they can be valuable:

a) Expertise: Mortgage brokers have in-depth knowledge of the industry, staying updated on the latest mortgage options, interest rates, and policies.

b) Comparison Shopping: Brokers can access multiple lenders, enabling them to compare mortgage products and find the best terms and rates tailored to your needs.

Down Payment Requirements: In Canada, a down payment is required to secure a mortgage. The minimum down payment varies based on the purchase price:

a) Less than $500,000: Minimum 5% down payment. b) Between $500,000 and $999,999: 5% down payment on the first $500,000 and 10% on the remaining amount. c) $1 million and above: Minimum 20% down payment.

Additional Costs: Apart from the down payment, there are other expenses associated with buying a home in Canada:

a) Closing Costs: These include legal fees, appraisal fees, land transfer taxes, and home inspection fees. It’s important to budget for these costs to avoid any surprises.

b) Property Insurance: Lenders require insurance to protect their investment. Research and obtain quotes for home insurance policies to factor this into your budget.

Conclusion: Navigating the mortgage process as a newcomer to Canada may seem overwhelming at first, but armed with the right knowledge and guidance, you can confidently embark on your homeownership journey. Take the time to understand the intricacies of the Canadian mortgage system, work on establishing a solid financial foundation, and seek professional assistance when needed.

Contact Us to help you get your mortgage obtain if you are new to Canada at Dominion Lending Centres Better Rate Mortgage.

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

What does it mean to renew your mortgage in Canada?

General Jay Vyas 4 May

If you’re a homeowner in Canada, you may have heard the term “renewing your mortgage.” But what does it mean to renew your mortgage, and why is it important? In this blog, we’ll explore what mortgage renewal is and what you need to know about the process.

What is Mortgage Renewal?

Mortgage renewal is the process of signing a new mortgage agreement with your current lender. When you first obtained your mortgage, you likely signed a contract that specified the length of the mortgage term, which is typically between one and ten years. When the term is up, you’ll need to renew your mortgage if you want to continue borrowing from your current lender.

Why is Mortgage Renewal Important?

Renewing your mortgage is an important part of the homeownership process, as it ensures that you continue to have access to the funds you need to pay for your home. Failing to renew your mortgage can result in defaulting on your loan, which can lead to foreclosure and the loss of your home.

When Should I Renew My Mortgage?

Most mortgage agreements have a set term length, typically between one and ten years. You’ll receive a renewal notice from your lender a few months before your current term expires, which will give you time to review your options and make a decision about whether to renew your mortgage or look for a new lender.

What Are My Options When Renewing My Mortgage?

When it’s time to renew your mortgage, you have several options. You can choose to renew your mortgage with your current lender, or you can look for a new lender who may offer better rates or terms. Here are a few things to consider when deciding which option is right for you:

1. Check Current Mortgage Rates: It’s important to review current mortgage rates to ensure that you’re getting the best deal possible.

2. Negotiate Your Rate: When you receive a renewal notice from your lender, they may offer you a rate that is higher than what you’re currently paying. Don’t be afraid to negotiate for a lower rate, especially if you have a good credit score and payment history.

3. Consider Other Lenders: It’s always a good idea to shop around and see if other lenders are offering better rates or terms.

4. Review Your Mortgage Terms: Take a close look at your current mortgage terms to ensure that they still meet your needs. If your financial situation has changed, you may need to adjust your mortgage terms accordingly.

Final Thoughts

Renewing your mortgage is an important part of homeownership in Canada. It’s important to review your options and make an informed decision about whether to renew with your current lender or look for a new lender. By taking the time to research and negotiate your mortgage terms, you can ensure that you’re getting the best deal possible and can continue to enjoy your home for years to come.

Contact Us to help you get your mortgage renew at Dominion Lending Centres Better Rate Mortgage.

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

I am Self Employed, Can I still qualify for mortgage?

General Jay Vyas 26 Apr

If you are self-employed in Canada, you may feel that getting approved for a mortgage is a daunting task. However, with the right preparation and documentation, it is possible to qualify for a mortgage as a self-employed individual. In this blog, we will discuss the steps you can take to improve your chances of getting approved for a mortgage.

Get your financials in order

As a self-employed individual, you will need to provide proof of income to lenders. This can be challenging if you do not have a steady income stream or if your income fluctuates. To address this, you should ensure that your financials are in order. This includes:

  • Keeping accurate records of your income and expenses.
  • Filing your taxes on time and having up-to-date tax returns.
  • Keeping your personal and business finances separate.
  • Having a good credit score.

Provide a larger down payment

Providing a larger down payment can help to offset any concerns that lenders may have about your income stability. A larger down payment also reduces the amount of money you need to borrow, which may increase your chances of being approved for a mortgage. The minimum down payment required in Canada is 5% for homes under $500,000 and 10% for homes between $500,000 and $1 million.

Get pre-approved for a mortgage

Getting pre-approved for a mortgage is a good way to know how much you can afford and to demonstrate to lenders that you are serious about buying a home. It also gives you an advantage when negotiating with sellers.

Provide additional documentation

When applying for a mortgage as a self-employed individual, you will likely need to provide additional documentation. This may include:

  • Your business license or registration.
  • Proof of income, such as tax returns, financial statements, and contracts.
  • Proof of employment, such as client contracts or invoices.
  • Bank statements showing your business income and expenses.
  • A letter from your accountant or financial advisor confirming your income.

Consider alternative lenders

If you are having difficulty getting approved for a mortgage from a traditional lender, consider alternative lenders. These lenders specialize in working with self-employed individuals and may be more willing to consider your unique circumstances.

In conclusion, getting approved for a mortgage as a self-employed individual in Canada requires preparation and documentation. By getting your financials in order, providing a larger down payment, getting pre-approved, providing additional documentation, and considering alternative lenders, you can increase your chances of getting approved for a mortgage and achieving your dream of homeownership.

Apply Now for Your Mortgage Today!

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

What should you consider If you are refinancing?

General Jay Vyas 17 Apr

Refinancing your home can be a great way to save money, reduce your monthly payments, or even tap into your home’s equity. However, there are several things to consider before making the decision to refinance. In this blog post, we’ll explore what you should consider if you are refinancing.

  1. Your credit score

Your credit score is one of the most important factors that lenders consider when deciding whether to approve your refinance application. A good credit score can help you secure a lower interest rate and better terms. Before applying for a refinance, it’s a good idea to check your credit score and take steps to improve it if necessary.

  1. Your current mortgage

Before refinancing, it’s important to understand the terms of your current mortgage. For example, are there any prepayment penalties? What is your current interest rate? How much equity do you have in your home? Understanding these details can help you determine whether refinancing is the right choice for you.

  1. Your financial goals

It’s important to have a clear idea of your financial goals before refinancing. Do you want to lower your monthly payments? Do you want to pay off your mortgage faster? Do you want to access your home’s equity for home improvements or other expenses? Understanding your financial goals can help you choose the right type of refinance and the best terms.

  1. The type of refinance

There are several types of refinance, including rate-and-term refinance, cash-out refinance, and streamline refinance. Each type of refinance has its own pros and cons, so it’s important to choose the one that aligns with your financial goals.

  1. The costs of refinancing

Refinancing can come with costs, including closing costs, appraisal fees, and loan origination fees. It’s important to understand these costs and factor them into your decision-making process. In some cases, the costs of refinancing may outweigh the potential savings.

  1. Your income and employment status

Your income and employment status are important factors that lenders consider when approving a refinance. Before applying for a refinance, it’s important to have a stable source of income and a steady employment history.

  1. The current market conditions

The current market conditions, including interest rates and the housing market, can impact your decision to refinance. If interest rates are low, refinancing may be a good option to secure a lower interest rate and save money. On the other hand, if the housing market is volatile, it may be better to wait until market conditions stabilize.

In conclusion, refinancing can be a great way to save money, reduce your monthly payments, or access your home’s equity. However, it’s important to consider several factors before making the decision to refinance, including your credit score, current mortgage, financial goals, type of refinance, costs, income and employment status, and the current market conditions. By doing your research and making an informed decision, you can take advantage of the benefits of refinancing while minimizing the risks.

Apply Now for Refinancing Your Mortgage Today!

Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage

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