How to Get a Mortgage in Ottawa: A Beginners Guide

How to Get a Mortgage in Ottawa

How to Get a Mortgage in Ottawa: A Beginners Guide

If you’re looking to buy a home in Ottawa, you may be wondering how to get a mortgage as a first-time home buyer. While the process can seem overwhelming at first, with some planning and research you can make it happen. Getting approved for an mortgage is not easy and will involve gathering lots of documentation and satisfying lender requirements. You will need to put together an application which shows your housing history, income, credit score, etc…

If this sounds like something you’re ready to take on, read on for our beginner’s guide on how to get a mortgage in Ottawa.

What you need to get a mortgage in Ottawa

There’s no one-size-fits-all mortgage, but there are some basic requirements most lenders will look for in an application. – You need to be a Canadian citizen or permanent resident: While immigration and refugee status are not factors in mortgage approval, your citizenship does matter. You can apply for a mortgage only if you’re a Canadian citizen or a permanent resident.

You need to be employed: Lenders will want to see proof of income in your application, such as pay stubs or employment letters. You’ll also need to show proof of income history for several months at minimum. This means you’ll have to show proof of employment for the last 12 months.

You need to have collateral: In the case of a default, the lender can take your house and sell it to recoup their losses. While you should always make your payments on time, you don’t want to leave your lender with no way to make up for a missed payment. If you have a down payment of less than 20 percent, you’ll likely need a collateral-backed mortgage.

You need to have savings: Lenders will want to see that you have savings set aside for housing costs, maintenance and repairs. You’ll need to show proof of funds in your application, such as a bank account statement.

You need to have good credit: Lenders will look at your credit history and score when reviewing your application. Make sure to pull your credit score at least 90 days before you start the mortgage application process, so you have time to improve it if it’s not at its best.

Meet with a mortgage broker

Many people only deal with a bank for a mortgage, but there are many different lenders in the market and each has different lending policies. By working with a mortgage broker, you can shop around for a lender offering the best terms and rates. A mortgage broker works with several banks and lenders, so they can help you navigate the process of applying for a mortgage. They can also advise you on which lenders are best suited for your credit history and financial situation. Working with a mortgage broker will allow you to compare different lenders, account for your credit score, and make sure you’re getting the best deal possible. There are many different types of mortgages out there, such as fixed-rate, variable-rate, open term, closed term, etc…

It’s important to know which type of mortgage you should be getting. A mortgage broker can help you make an informed decision on what type of mortgage is best for you. They will be able to help you decide on the best type of mortgage for your needs.

Check your credit score

One of the first steps of getting a mortgage is to check your credit score. This will give you an idea of how lenders will see you. Having a good credit score is key to getting a good interest rate on your mortgage. Most lenders will want to see a credit score of at least 680. There are a few ways you can go about checking your credit score, but the most reliable method is to sign up for a credit monitoring service. A credit monitoring service will give you a detailed report on your credit score, along with information on what factors are affecting it. You may have to pay for a credit monitoring service, but in the long run it’s worth it. Having a good credit score means you’ll have more options when it comes to lenders. You’ll also have a better chance of getting a lower interest rate with a better payment plan.

Get an appraisal

An appraisal is a process where a third party will assess the value of your home. Lenders will want to see an appraisal on your home, so they have an idea of what it’s worth. Appraisals vary in cost, so you may need to set aside some cash to cover the expense. Your mortgage broker can help you find a reputable appraiser who will accurately value your home. The appraisal process can take anywhere between a couple of weeks and a few months, so keep that in mind when getting an appraisal. Depending on the value of your home, lenders may require two appraisals. This is common when the value of the home is high, as it provides a level of assurance that the mortgage amount won’t be more than the value of the home.

Know your lender and the loan type

Not all lenders are created equal, and they will each have their own lending policies. So, it’s important to do your research and find a lender that best suits your needs. Make sure you pick a lender that offers the type of loan you’re looking for. If you’re in the process of getting a mortgage, you may want to jot down the name of the lender you’re working with. This way, you’ll have one lender to focus on instead of applying to as many lenders as you can. Different lenders will have different mortgage rates and terms, so do your research and make sure you apply for a mortgage that works best for you. You can start by taking our quick quiz to find out which lender is best for you.

Conclusion

Getting a mortgage can be a stressful experience, but it doesn’t have to be. By practicing good financial habits and making sure your credit history is in order, you can get the best mortgage terms possible. By following our beginner’s guide on how to get a mortgage in Ottawa, you can take the first steps towards owning your dream home. You will need to gather lots of documentation and satisfy lender requirements. And while it may seem like a daunting task, it’s one that can be accomplished with the right amount of preparation.

We here at Capital Mortgages in Ottawa look forward to assisting you with all your Ottawa mortgage broker needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

Ottawa Mortgage Brokers: Capital Mortgages

Ottawa Mortgage Brokers: 3 Questions To Ask Before Choosing One

Capital Mortgages specializes as a service-oriented brokerage that prides itself on integrity and maintaining a service level second to none in the industry. Whether you are looking to purchase a principal residence, a revenue producing property, or are preparing to refinance existing loans and mortgages, our team of mortgage brokers and agents will offer seamless solutions.

What To Ask Before Choosing A Mortgage Broker

We’ve taken this article from our blog and applied it to two groups of clients and business owners. Sellers – Looking to sell your property or have a limited budget? Well, unfortunately, mortgage brokers are not the places to turn to when you’re trying to sell your home. Why? Because your best option is to sell your house to a local buyer, like a family member or your roommate. Let’s face it, if you are selling your home to a buyer in another province, you are probably not going to qualify them, which leads to your house sitting on the market for a very long time. In the long-run, this could also negatively affect the value of your home. Do not sell your house to a mortgage broker.

Why Choose Capital Mortgages for your Ottawa Mortgage?

Our team of mortgage brokers and agents have years of combined experience servicing client’s mortgage needs. We pride ourselves in our ability to effectively deliver on both your time as well as a process that is timely and transparent. Our team is highly knowledgeable and transparent. We offer personalized mortgage services. This means that we take the time to understand your needs, and then we work with you to provide solutions that work best for your specific situation. We also take the time to get to know the market, so that we can advise you of what is available to meet your needs. Our entire brokerage consists of qualified mortgage professionals that are available 24/7 via phone, email or in person.

How To Get Started With Capital Mortgages: Ottawa Mortgage

You need a loan. The first step in the process of purchasing a home is obtaining a mortgage. The second step is determining which mortgage option is best suited for your individual needs. Whether you want to obtain a variable, fixed, or 15 year mortgage, we at Capital Mortgages can assist you. You can also contact us to discuss financing of other purchases like a vacation home or investment properties. But how do you make sure you choose the right mortgage? 1. Rent out your existing property. Before you can finance a home, you need to be able to rent it out. Depending on your personal situation, this could be a good idea. However, if you have kids in school, do not own any pets, are a renter yourself, and are retiring, renting out your home may not be possible.

Conclusion

Mortgage brokers that follow the above rules should be able to provide comprehensive advice for borrowers and clear, concise communication that answers any concerns that might arise. Investing in a good brokerage experience is worth the extra time and effort that you might have to spend at closing.

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.