How to Get a Mortgage in British Columbia
Most mortgages in British Columbia are obtained through a bank, credit union or a mortgage broker who can find lenders you might not be able to find on your own. You can apply with several lenders and find out which one will give you the best mortgage rate. However, if you plan on applying at various institutions, consider using a mortgage broker. They will ask for your credit history only once. This can benefit you because having your credit history requested multiple times in a short time can affect your credit rating.
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Instructions
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Meet with a mortgage broker or other lender to discuss your particular financial situation and history. There are mortgages in B.C. for borrowers in different situations, including no (or small) down-payment, bad credit and self-employed borrowers.
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Fill out the application information--do it with your mortgage broker if you're using one. The broker or lender will need detailed information about your past credit history, financial history and employment history. Your application will need to be reviewed, and you may get pre-approval for a mortgage.
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Discuss the different mortgage rates and variables. There are many types of mortgages available in British Columbia, including variable and fixed-rate mortgages. You will need to figure out what type of mortgage suits your needs.
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Look for a home. Once you have been pre-approved for a mortgage you can take your pre-approval to a real estate agent and start looking for a home in your price range. Most pre-approvals are good for 60 days.
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Tips & Warnings
How much you qualify to borrow depends on your gross income. Most lenders will lend between 32 percent and 44 percent of your gross income.
If you can put 15 percent to 25 percent down, you will have a much better chance of getting a mortgage. However, there are programs where 5 percent or less is all that's necessary.
Outstanding debt will work against you getting a mortgage.
If you have a rental suite in your future home, you may be able to count it as income and get a larger mortgage.
References
- Photo Credit house for sale image by Soja Andrzej from Fotolia.com
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Comments
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This is good advise, however it does not always work this way. If you are buying an apartment make sure that the bank will also finance the place that you like. If the bank does not approve the condition of the apartment, you are out of luck.
