Friday, January 19, 2024     Erin      Real Estate Market

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Finding The Best Mortgage in Canada 

When it comes to getting a mortgage in Canada it’s a process and should be taken very seriously. Purchasing a new home for the first time can come with a lot of questions and other important factors to consider. One of the most important things you’ll need to do is have a down payment and a mortgage. 

In this blog, we’ll review what a mortgage is and how you should go about getting one. We’ll also include some tips for those who are looking for a mortgage in Canada and then at the end of this blog we’ll explain how the VanDinther Team can help you make the right moves. 

Tips for Getting the Best Mortgage 

Sure this is both an exciting time and a stressful time, taking the big step in becoming a homeowner. The first step is to look for a mortgage provider and then make sure you have enough for the down payment. 

Over time you’ll be paying off your mortgage to the lender and this mortgage is a legal and binding agreement. This means that your home is the collateral and if you fail to pay your mortgage, the lender will take the house – let’s make sure that doesn’t happen. Listed below are some tips we think you might want to consider when taking this step and becoming a homeowner.

  1. Research Mortgage Interest Rates 
    • According to the recent article by RE/MAX Canada, “There is no one-size-fits-all approach to getting a mortgage. There are a few different types of mortgages, each of which will impact the interest rate you receive…” 
    • This means that you will be able to choose from some different types of mortgages, for example a prime mortgage is a lower interest rate and will be able to help you save more over the lifetime of your loan. Speaking with a professional is the best way to choose the right mortgage for you. 
  2. Decreasing Debt-to-Income Ratio
    • The best way for you to reduce debt-service ratio, which represents your gross monthly income that’s used to pay off your debts.
    • It’s been recommended by the Canada Mortgage and Housing Corporation that you should keep your gross debt service below 39 percent and your total debt service below 44 percent. 
  3. Improved Credit Score
    • This can be accomplished by making bigger payments to any outstanding debt that you might currently have. 
    • You might want to also pay off any collections as well, as this greatly improves your credit score. Keep in mind that you need to continue to stay on top of your bills and other credit card debt to continue to have a good credit rating. 
  4. Income Stability 
    • According to the article by RE/MAX Canada, “Income stability signals to a lender that you’re less likely to default on your mortgage. First, sit down and run an honest assessment on how much money you bring in every month versus how much you spend, to improve your income stability.”
    • Try figuring out how to spend less money, budget your weekly and monthly spending and open a savings account. This will allow you to save for that down payment and also give you a sense of security. 
  5. Employment History 
    • It’s very important to have your employment history available for a mortgage lender to review. This is because the lender needs to know that you’re capable of paying for the mortgage. 
    • Your employment history is how you show the lender that you have current employment that you will have in the future . 
  6. Saving for the Down Payment
    • When you contribute more to the down payment you’re helping to reduce the size of your mortgage therefore helping you get a better interest rate. 
    • If your down payment is greater than 20 percent you’ll usually receive a better interest rate. 
  7. Savings Account 
    • Lenders will want to take a look at your banking to make sure you have enough in case you need to dip into your savings. This will further ensure them that you’re able to take on the mortgage. It also helps when getting a good mortgage rate. 
    • RE/MAX Canada has recommended that you have three to four months worth of savings available when shopping for a mortgage. 
  8. Interest Rates 
    • Right now interest rates are low – RE/MAX Canada recommends trying to time the purchase of your home when the interest rates are lower. This is to reduce your monthly payments and the interest paid over the lifetime of your mortgage. 
  9. Low vs. High Ratio Mortgages   
    • When you have 20 percent to put toward your down payment, it’s required that you also get mortgage loan insurance. This insurance is also some security for your mortgage lender, in case you default on your payments. 
    • This fee can be added to your mortgage monthly payments, RE/MAX Canada recommends that you save up at least 20 percent so that you won’t need this mortgage insurance. 
  10. Shop Around for the Best Mortgage 
    • Once you’ve successfully completed all of the above steps you can start shopping around for the best mortgage for you. There will be some lenders that can offer you better rates – know all of your options before you commit. 
    • You might want to consider working with a mortgage broker, they can help you secure the best mortgage to suit your needs and financial situation. Plus they can shop around for you, with their expertise and help we know that you’ll be in good hands. 
    • The mortgage broker doesn’t require any fees on behalf of the borrower (you) – this is a win-win sort of situation. 

This might be an overwhelming process at first but hang in there and follow through with each step. You’re just that much closer to becoming a homeowner and it’s a very big step in life. Working with an experienced real estate agent is also another step you can take once you’ve secured a mortgage. Working with the VanDinther Team is a great way to start this process, learn more about this in the final section of this blog. 

Contact the VanDinther Team at We Sell Millcroft 

The VanDinther Team is available to help you make the right moves in order to find the best home. Working with experiences and knowledge real estate professionals is highly recommended and means you will have help securing the home of your dreams. 

Each real estate agent at We Sell Millcroft is highly qualified to find you a home in this very sought after neighbourhood, located in Burlington, Ontario. Millcroft is located near the major highways, making it a convenient place for those who commute into Toronto. Plus the neighbourhood offers some of the best schools in the city as well as parks and other amenities. 

If you would like to work with the VanDinther Team please contact them directly by phone at 905-632-2199 or by email at If you've been wondering what your home might be worth, give our "What My Home Worth" calculator a try! The entire team is looking forward to working with you and helping you find the perfect place to call home. 

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We Sell Millcroft Team