Mortgage Checklist For the Best Mortgage Rates in CanadaCheck Your CreditBefore you even start, it is advisedto check your credit bureauinformation. There are anincreasing number of studies thatshow that over 79% of individualcredit scores have errors. This stepis completely optional. However, itis in your own best interest ifyou’re seeking a loan. You are allowed to order a free copy of yourcredit score from Equifax and TransUnion once per year. Check anddispute any errors before you submit your loan application. You can’tget the best mortgage rates in Canada if you have bad credit that isn’teven if your fault. If you’re reasonable certain your credit is correct,than you can skip this optional step.
Personal InformationObviously, your lender is going to want to verify who you are. You’regoing to need supporting documents to specify your date of birth,current address and phone number, marital status (if applicable),number of dependents (if applicable), addresses for the past 3 years,and of course, your social insurance number (SIN).Verify the Property If you aren’t already in the process of purchasing a property and are instead just seeking a preapproval, this will not be required. A mortgage preapproval is a great way to get your offer taken seriously. Lenders will typically ask for a copy of the purchase and sale agreement, copyof the MLS listing, address and description of the house if it is a privatesale with no MLS listing, current owner contact information to accessthe home (if applicable), new construction plans and specifications (ifapplicable), and your lawyer’s contact information (can be sorted later).Verify your employment/incomeYou know where you work but your lender may not. Depending on thetype of employment, you may need anything from a few paystubs and aletter of employment to NOA (notice of assessment) and T1 to verifyyour income. It used to be that two years of T4 statements was enoughbut the increasing amount of fraud, many lenders may now require anN1 and/or T1. It’s really at the discretion of the lender so there is noeasy answer. For salaried employees, most lenders only require yourtwo most recent paystubs. What you will require will depend largely onhow the lenders perceive your situation as a borrower so be mindful of
this. Lastly, if there is any employment gap in the last year, you’ll wantto provide a written explanation of that.Down PaymentNot only are you going to need to know exactly how much of a downpayment you have available, you’re going to need to verify your downpayment. In recent memory, some buyers andsellers were arranging for phone receipts andpapers claiming down payments that didn’t actuallyexist in order to commit mortgage fraud. Don’t bealarmed if your lender asks for bank records toverify the down payment.Determine the Best Type of LoanThere are numerous loan types of packages available. Your needs willvary with your own personal situation. If you’re unsure, the best thingto do is to discuss with an experienced professionally mortgage broker.Typically, mortgage brokers are paid a commission from the lendersdirectly so there is no cost to getting this kind of advice. You’ll want tonot only discuss the loans but the fees involved as many buyers canoften overlook them.MiscellaneousMost of this information is not required, although some lenders mayask for it. However, it’s a wide idea to be pre-emptive about yourmortgage. Lenders are just people and so if you look incrediblyprepared, it’ll make your loan easier to give the proverbial stamp ofapproval to and you can often actually get the best mortgage rates in
Canada. You can make a complete list of your assets, includingpersonal bank accounts verified by 3 months worth of statements,confirmation of that down payment, current value of any and allinvestments including RRSPs, value of life insurance and supportingdocuments, information on your cars including estimated value as wellas pictures and how much you owe, information on any significantproperty and/or real estate you own, and any information on financialgifts or bonuses you have received. You can also itemize your debts,provide a written explanation of any bankruptcies (if applicable), andwritten explanations of past credit problems. While these are notrequired, they can help make the banks understand your situationmore easily.Getting the Best Mortgages in Canada There are so many different lenders and loan packages that getting a top mortgage can seem overwhelming. Getting expert advice is paramount in getting the best mortgage rates in Canada. You can and should speakwith an experienced mortgage broker who can help shop your loan foryou. Another option is to use a mortgage search engine likeCanadaRates.ca which can search lenders for you. It’s a free mortgagesearch engine that connects people with hundreds of lenders. A lot ofpeople find that it’s by far the easiest way to get the best possible ratesin Canada. Whatever you do, be advised that your bank often has a“preferred rate” that they only offer to you once they know you’reshopping around. Be sure to let them know that you’re using a servicelike http://canadarates.ca or a professional mortgage broker and youcan get the best mortgages possible.