Your first step should be to consult with a mortgage broker. A mortgage broker has a wide range of lenders and products to choose from and best of all, there is no cost to the borrower for this service unless, of course, there are credit problems or extenuating circumstances (like unverifiable income). The mortgage broker will determine the mortgage amount you qualify for based on credit, income, assets and liabilities. Note that the borrower must have a minimum of 5.00% of the purchase price available for down payment. While in the past, 100% financing was available, this is no longer the case because of the new mortgage rules implemented by the Federal Government in October of 2017.
One mistake people make is contacting a number of institutions or brokers. By doing this, you become what the industry calls a ‘shopped loan’. Too many applications and credit checks hurt your chances of obtaining the the best product for your needs. An experienced mortgage broker can help you determine whether a fixed rate mortgage or a variable rate mortgage is for you based on your risk tolerance.
Choosing an experienced, qualified mortgage broker can save you thousands of dollars. It’s similar to choosing a financial planner. Remember that a mortgage broker works for you, not the bank.