5 Things to Avoid Before Your Closing Date When Buying a Home


When buying a home and getting approved for a mortgage, it's important to review any major changes with your mortgage broker first to assure that it will not affect your mortgage approval.


5 Things to avoid Before Your Closing Date When Buying a Home


Changing Your Employment

Even if a promotion is available, it’s important to review the new employment opportunely with your mortgage broker. If you are changing from base salary, for example, to contract, hourly, bonus and so on, that can affect your approval.

Also, if there is a probationary period at your new employment, many lenders will want to see this period over, before the closing date.

All of this can have a potentially dramatic effect on your application.


Applying For New Credit

With your new home closing date approaching, the purchase of furniture and other items can be very enticing. Especially with stores offering one year with no payments. Sadly this debt will have to be taken into account in your mortgage application and may affect your debt to income ratio. Even if you are not making payments on the debt for a year, a lender will still need to use 3% of the balance of the debt in their calculations.

A car loan is a major item to avoid before your closing date when buying a home, without talking to your mortgage broker in Ottawa first.

Also, with more credit checks, this will lower your score and it may drop below the minimum guidelines.

Learn more: How to Get a Free Copy of Your Credit Report
Learn more: Equifax.ca


Missing a Bill Payment

Home inspections, visiting your real estate lawyer, packing and so on, can be very over whelming and a little distracting before your closing date. Just one late payment can have a large negative impact on your credit score. Be sure to keep track of the minimum payment amounts and the due dates on a calendar so you do not miss one.


Changing Details Without Telling Your Ottawa Mortgage Broker

Sometimes there is the opportunity to change your closing date, for example, only to find out on the closing date that the mortgage isn’t there. If you change your price or closing date, your mortgage broker is not automatically notified. Therefore, it is important to inform them of the changes. This will help assure a smooth closing for you.


Co Signing For a Loan

Even though you are not making payments on the loan, the debt will have to be added to your liabilities and will affect your debt to income ratio. This may results in increasing the ratio above the allowable limit.

Learn more: Co Signing for a Mortgage

andrew thake about

About Andrew Thake

Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.

Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.

Why not make your mortgage experience a comfortable one?

Book an Appointment