Which bank is best for mortgage?

General Amritjot Saini 6 Sep

Which lender should I go to for mortgage? – Compare Mortgage Banks

No doubt the big 6 including Scotiabank, TD, CIBC, HSBC, National Bank and RBC are best in mortgage lending. But each banks have different product line and rates. Well, most recommend to just go to the bank’s website and check the mortgages section. However, this will only give you general details Plus it’s not tailored as per your requirements. Sure, banks have mortgage advisors. But they don’t know what competitors offer or sometimes, they’re not experienced in their own programs.

How do you make an educated decision? How do you compare mortgage banks? What things you should avoid discussing with the banks? How do you get firm approval at the best rate?

Well, the simple answer is it is very hard to compare the mortgage products. All lenders follow the same guidelines but do the business and underwriting differently. The best thing for you to do is to find a friend who has inside connections and will discuss your numbers to give a specific answer. All this without disclosing your identity. This is where I can help.

I am a Licenced Mortgage Agent who works for my clients. Get trusted mortgage advice and professional lending sourced from largest Canadian banks and lenders. As soon I see a deal, I know which bank will approve it from the get go. So do not waste your time and efforts in finding the right lender as it is next to impossible to know each and every guideline of every lender. Just dial (647) 568-5120 and let me tell you what will help you get the mortgage.

Avoid this:

  • Going to multiple lenders – Each time your credit is pulled, your score takes a hit. Secondly, the more inquiries you have, the more of a credit seeker you look like.
  • Applying without enough information – It’s better to know exactly which banks deal with new immigrants, work permit holders, salaried, self-employed, business owners or commerical investors. If you do not filter down the list of what your situation is and then find a lender, you expose yourself to more declines.
  • Understand rates is not everything – Getting the lowest rates is an achievement for many real estate buyers. You want to boast about your new investment at the best rate in market but when it comes to mortgages, there’s more to it. Prepayment penalties, terms flexibility, refinancing penalties and deferrals are some of the factors that most people overlook, end up paying hefty penalties.
  • Thinking you have income – You recently got hired at a lucrative package and now can afford the house you’ve always dreamed of. Banks still may say NO. The income may not be qualifying as you are on probation. I know exactly which income qualifies: fixed, variable, salaried, seasonal, contractual, business or investments.
  • Just got the down payment – You got the down payment from a loved one or just completed saving it but sorry, that’s not enough. Mostly the the down payment is required to be saved for minimum 30-90 days before you can apply for the mortgage.

Mortgage Loan Insurance Rates

General Amritjot Saini 10 Aug

Mortgage Loan Insurance Rates

Mortgage loan insurance is an insurance for lenders for the mortgage amount funded. But, this is usually applicable when your downpayment is minimum. Furthermore, you may add the mortgage premium in your mortgage or pay as lump sum. And the lender will pay the insurer directly the mortgage premium.

How much is the mortgage loan insurance premium? How to avoid paying hefty premiums?

The premium is calculated as a percentage of the mortgage. And it is based on the size of down payment (loan to value ratio). The key to saving premium is buying putting more downpayment.  Here is the premium chart showing charges for premium (sourced from CMHC):

  • 0.60% premium for loan up to 65% of home value.
  • 1.70% premium for loan up to 75% of home value.
  • 2.40% premium for loan up to 80% of home value.
  • 2.80% premium for loan up to 85% of home value.
  • 3.10% premium for loan up to 90% of home value.
  • 4.00% premium for loan up to 95% of home value.

Learn more about minimum downpayment requirements. As you might’ve heard, CMHC, Genworth and Canada Guaranty are the 3 mortgage insurers in Canada. While CMHC is government owned crown corporated insurer, the other 2 are privately owned. Indeed, all the 3 insurers charge the same premium rate.

Why insure mortgage if I am putting 20% downpayment?

One of the reasons is insured mortgages are offered discounted rates. Hence the lower rates decrease interest payments and cost of borrowing. The difference in interest rate may supersede the cost of paying some extra premium. Secondly, lenders may ask you to get mortgage insurance depending on their guidelines. For example, in some cases of commercial and high risk residential mortgages.

Recent Changes

CMHC lowered the capacity for home buyers putting less than 20% down. Because the GDS and TDS were lowered to 35 and 42%. Thereby, decreasing the purchasing power of home buyers by 12%.

However, good news is Genworth and Canada Guaranty’s GDS and TDS max still remains at 39% and 44%.

Note: It is good to have at-least one borrower have a credit score of 680 or more. Secondly, non-traditional sources of downpayment (borrowed downpayment) are no longer considered equity for insurance purposes.

Have any questions about mortgage? Contact now (647) 568-5120.

Tips to GET APPROVED

General Amritjot Saini 9 Aug

5 Tips to Get Mortgage Approved

Here’s the 5 Golden tips to get mortgage approved.

1. Check your credit score, utilization and payment history.

The credit score ranges from 300 to 900. To get the best rates, it’s best to have at least one applicant with a credit score of 680 or more.

Along with the credit score, your credit utilization shows your credibility and ability to repay your debts. But the credit reports also shows your history about late payments, number of accounts open, limit and balance owing. It’s always a good idea to pay your existing high debts including auto loans, student loans , line of credit, etc.

There are 2 providers of credit reports in Canada: Equifax and TransUnion. It’s recommended to check your credit sore quarterly so your credit report is top notch.

2. Save Down payment

Find out the minimum downpayment requirements..

Having a larger downpayment makes your application stronger and more lenders will provide competitive rates to get business from you. Plus more downpayment means less borrowing, which means you’ll pay lesser interest during the mortgage term.

Whenever you put less than 20% down, you need to buy mortgage insurance from CMHC, Genworth or Canada Guaranty. But, this premium can be included in the mortgage, which might increase your monthly mortgage payment.

Want to test your downpayment, income and other factors for mortgage? Use these calculators or download my app.

3. Get your qualifying income right

Lenders always require proof of income and income stability for atleast the last 2 years. With a full-time job, the process gets easier as you have the required documents from your tax filings. But many Canadians are self-employed. Don’t worry, there’s solutions for all. Read this article to see if your income type and numbers are qualifying. For any questions about your income, feel free to reach me.

5 tips to get approved for mortgage

4. Get your pre-approval

Pre-approval is basically submitting your an application based on numbers to the lender to get approved for a set mortgage amount, interest rate and term. The rates can be help for up to 120 days. And once you have your pre-approval, you can house hunt with confidence and the final application submission becomes easier as the lenders are already notified.

5. Work with a Licenced Mortgage Agent

It’s quite clear that you’re busy with getting the above 4 things right and it’s very challenging for you to shop around for the best mortgage product. Well, I’ve the solution you need. I am a Licenced Mortgage Agent dealing with over 90 lenders, with great connections. So let me take the load off your head and find you the best rates and mortgage product. Your benefit is you get a Mortgage Expert working for You for Free!

As I bring millions of dollars of business to the banks, the discounts and cashback offers on rates I get are unbeatable. Whether you’re a first time home buyer or an investor, I’ll guide you through the mortgage process with the best trusted mortgage advice and provide professional lending experience. And I like to maximize benefits for my clients in terms of rebates and tax savings.

You can check my published rates. To get access to the unpublished rates with discounts, call me directly (647) 568-5120.

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