Pre Approve yourself | Qualifying for a Mortgage | Where to Start?
How much Mortgage can I qualify for? You may be asking yourself where do I even start?! Beyond the 5 C’s of credit which which we discuss in another article. There are 3 basic components to Qualifying for a Mortgage:
- Keep your credit score strong! A score of 680 or greater and you are a home run applicant. Don’t ask the bank to pull your credit, but do it yourself like we suggest on our site. There are plenty of online sites that do this for free now a days like CreditKarma.ca and Scotiabank.
- Save 5% Cash Down. In Canada this is the minimum required. There are creative ways to bypass this like the Home Buyers Plan RRSP Strategy we talk about on our site. Or what is called the “flex down” borrowed money mortgage program; but we highly discourage this as you could be potentially be trapped in high interest payments! Set a goal and SAVE MONEY, make a list of daily, weekly, and monthly things you could sacrifice and get there!
- Keep a job for at least 1 year. Or if you are self employed, you must be so for at least 2 years. Some banks will make exceptions for this rule if for example: You are graduating with some sort of degree, or you transferred jobs to a new city or employer with the same line of work. It’s best to contact us to tell us what your story is if it’s not conventional as we which banks will make exceptions where and how.
Be In Control and work towards these three steps for Qualifying for a Mortgage and you will be ready in no time!