First you considered what type of mortgage is right for you. Now you have to understand what type of mortgage customer you are. For example, are you an AAA client? Or maybe you have a spotty credit history, or you cannot verify all your income. Knowing this in advance allows you to be realistic in terms of seeking out the right mortgage. You shouldn’t hang your hat where your hands can’t reach.
This is not my first time, and I have no major issues
You’ve been through the buying process before, and you have some idea what to expect. Because you have ‘no major issues’ (see below) you should be able to choose from the very best of mortgages. All you need to do is decide which factors are important to you, and select your mortgage accordingly.
I am a first time buyer
It’s all new to you. It’s exciting and a little scary all at the same time. You really should work with lists to make sure you forget to take care of something important. You need to figure out who will help you buy a home; who you will use as a real estate lawyer; how to move all your stuff; how to deal with utilities hook ups; how to properly insure your new home; and how to get the best possible mortgage for your circumstances.
I am new to Canada
You are most likely also a first time buyer. But because you are a recent immigrant, there may be different mortgage lending guidelines which apply to you. Be sure you work with a mortgage specialist who is familiar with cases such as yours.
It’s hard to verify all my income
Many people who are self-employed do not report sufficient net income to qualify for a mortgage. Others may be commissioned, or have part time employment, lots of overtime, or maybe earn a fair amount in tips and cash. You are in a different category of borrower, and while it is still possible to qualify for a mortgage, you need someone experienced in your corner to ensure your interests are well served.
I have damaged credit
Not everyone has an excellent credit history. Some have had issues in the past – could be an argument with the cable company; or late payments on a credit card, or maybe even a personal bankruptcy or a consumer proposal in your past. Some lenders will still consider you an “A” type borrower, if the misdeeds are not too serious. Or, you may need to work with an alternative lender, who specializes in “B” type deals, or even a private lender if necessary.
I am retired and I am house rich and cash poor
Often pension income and OAS are not enough to get by on once you retire. You can alleviate this concern with either a Home Equity Line of Credit, or possibly even a reverse mortgage. Both can address the problem, though they are quite different approaches.
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