Shopping for a mortgage can help assure you get the best options. Also that you get the best interest rates for mortgages.
An Ottawa mortgage broker can usually beat a bank’s mortgage rate. The mortgage broker may give access to more discounts on the bank’s mortgage. There are a variety of reasons for this. One reason is, the broker does not have any of the overhead that the bank branch has. Overhead such as operating the branch and the staff salaries.
Think of this as shopping online for a product, versus going to a store. The online price, such as with Amazon, will be lower for the exact same product.
A bank will only be able to offer you one lender option, their own. A mortgage broker in Ottawa has access to dozens of lenders to cater the mortgage to your exact needs. Also, to find you the best mortgage rate in Ottawa.
Your credit score is a major factor in the mortgage review. Lenders will look to your score right away and depending on your score, this will affect your results, mortgage amount, interest rate and more.
Some banks are not able to provide you with a detailed breakdown of your credit report. So if declined due to your credit, you may be left in the dark as to what the specific credit reason was.
An Ottawa mortgage broker can review your entire credit bureau with you and offer you tips to build your credit score and to find any bumps that may be in your credit history. That way the bumps can be addressed right away.
Learn more: Build Your Credit Score
Each time an application is done and your credit is checked, this costs you valuable credit points. A mortgage broker in Ottawa can pull your credit and use this one pull at all the lenders to save you points. As opposed to having each bank check it.
If you are non-salaried income or salary plus others, such as self-employed, base plus bonus, commission and so on, lenders will typically use a two-year average of your taxable income from your Notice of Assessment or T1 General.
With that, it’s important to have your income taxes up to date. A lender will also want to see that you do not have any income tax in arrears.
When mortgage guidelines change, typically your mortgage pre-approval is no longer valid. This could be seen for example when the stress test rule was introduced.
A mortgage broker can stay on top of these changes for you. This will help assure your pre-approval is always in line with current guidelines.
YouTube: Mistakes to Avoid When Shopping for the Best Mortgage Rate in Ottawa