House hunting – the very definition of looking for a house that suits your every fancy – is full of unexpected surprises that will “kill you with overwhelming caveats” that you just cannot take for granted. In other words, you are as helpless as driftwood on a seabed full of traps and sinister surroundings that will entrap you if you are not careful.
But fear not! You are not driftwood and you are not alone in your quest to find a dream home. Many of you are your own version of driftwood that is hapless and mindless at things relevant to home buying and home mortgaging.
In fact, a number of you might even settle where you are right now and just let the waves of opportunities pass by.
Our topic is about getting a bigger mortgage should you decide to push your limits further and target a house that carries a higher price tag. While this may not be an easy thing to do – most especially if you are a first-time home buyer – it is not also this difficult to achieve provided you know these steps in realizing your goal.
Read on and have an inside scoop on our tips to get you that higher-valued mortgage easily.
Tip-Top Tips to a Larger Mortgage Deal
We have been complementing your knowledge with countless advice, techniques, tips, and tricks to get you by in purchasing your new house or striking an irresistible deal with your lenders.
Our topic today is one that is closest to our hearts because it involves four personalities helping one another to achieve a common goal: YMCA.
YMCA stands for You, Mortgage contract, Creditors, and Advisors. These four personalities all play an important role in helping you apply for larger home mortgage loans as you will see below:
Tip #1: Make a larger down payment – if you want that house so bad, extend the effort to generate a bigger amount to initially pay your house seller.
You cannot allow this opportunity to pass by; hence, show initiative in producing the money needed to reserve the house you want to purchase.
Find means of increasing your budget and make it a point to maintain your current financial well-being (i.e. good credit score).
To give you a bird’s eye view of Canada’s down payment rules, see the table below:
a. Homes priced under $500K = 5% down payment required
b. Homes more than $500K but less than $1-M = 5% of 1st $500K plus 10% of the remaining purchase price
c. Homes more than $1-M or above = 20% flat down payment
Tip #2: Increase your income – if you find it challenging to satisfy tip #1, increasing your income may help you out of this dilemma. There are many means to upgrade your take-home pay but you have to make sure that your percentage increase in salary or in wage will go only to the procurement of a larger valued mortgage and never for anything else.
Tip #3: Pay off your debts – this is probably the most common knowledge tip we have in all of our blogs. Your lenders will make certain that you are responsible for settling your debts not only in time but also in earnest.
The better your credit score is, the higher the level of trust your creditors will afford you in your request for a pre-approved bigger mortgage. This is one of many requirements for a mortgage that you have to pass with flying colors to be properly accommodated.
Tip #4: Find a lower mortgage rate – this is quite tough considering the current economic situation we are in at the moment. The pandemic scare is also to blame for the dipping of house prices and lower interest rates.
Do your research into the different lending institutions and mortgage products they have available and choose wisely. One perfect example is the mortgage rates dominion lending is offering to house hunters like you.
Take note, however, that many lenders will pay more close attention to your payment of the principal instead of the interest. Read and understand your mortgage contract carefully before signing it.
Tip #5: Improve your credit score – it goes without saying that a good credit score is your key to a better and larger mortgage loan amount. Lenders will gauge your ability to pay on time, your attitude toward money, and your skill in monitoring your expenditures.
We suggest that you request a credit report to check your status and if you see any erroneous data, do not hesitate to call the attention of your nearest credit bureau office(s) and have this corrected at once.
Final Thoughts
Getting a pre-approved mortgage loan for a higher amount is simple. Be vigilant and be prepared financially to move forward with your plans. Your dream house is a mortgage contract away but you have to ensure that your credit is satisfactory.
Follow our tips enumerated above and you can be certain to have your mortgage loan request approved without any hassle. We recommend talking to a professional mortgage advisor so that he/she can give you a proper walk-through about the mortgage plan that suits you best.
We are your trusted mortgage solutions experts based in Canada founded by Faizal Garasia in 2019. We have access to more than 90 lenders including the largest banks, credit unions, trust firms, and financial institutions across Canada.
We help you understand and resolve issues regarding mortgages, finances, taxes, and other loan-related payments that impact your real estate plans.
Contact us at (416) 825 0142 or send an email to faizal.garasia@dominionlending.ca today for more information.
