TOP 10 TIPS for getting a Mortgage

The ten principles of applying for a Mortgage
 

1. Do not change jobs, become self-employed or quit your job.

A strong and steady employment history is essential.
 

2. Do not buy a car, truck or van (or you may be living in it!!)

Some lenders will check your credit just prior to funding the mortgage. If anything shows up that hinders your ability to repay their new mortgage to you, such as a new car loan, they could refuse to fund the mortgage.
 

3. Do not use credit cards excessively or let current accounts fall behind.

If there have been substantial changes in any of your credit cards, bank loans or lines of credit, this could alter your purchasing power.
 

4. Set aside money for closing costs at the start of the process.

In addition to the down payment on the purchase, you will need to pay the lawyer/notary all of the closing costs. Closing costs include: Property Transfer Tax (if applicable), property tax adjustments, strata fee adjustments, and the legal fees.
 

5. Do not omit debts or liabilities from your loan application.

They will show up on the credit bureau.
 

6. Do not ‘go shopping’ for a mortgage with multiple applications.

Submitting a second application with a different broker will have negative results. If you have questions, ask your broker!
 

7. Do not originate multiple inquiries into your credit.

If you have applied for a couple of new credit cards or accepted the new bank account with a large overdraft privilege, you may appear as a ‘credit seeker’ and that could compromise your ability to repay a new mortgage.
 

8. Do not make large cash deposits or transfers without checking with your mortgage broker.

9. Do not change bank accounts.

Financial history has to be provided for down payment funds, in some cases up to 90 days
 

10. Do not co-sign a loan for anyone else.

If the person you co-signed for is unable to make their payments (for whatever reason) that lender is coming after you for the payments and/or the balance of the loan.