Buying a home is a major life decision. It’s a new place to live and likely the single most valuable asset you’ll own, once the sale goes through.
The high cost of real estate means most buyers apply for a mortgage. A mortgage specialist will help you through this important and sometimes complex process.
These professionals can answer a wide variety of questions. Mortgage specialists are always ready to talk about broadly relevant topics, like how good credit scores, employment history, and interest rates impact your mortgage.
They can provide helpful guidance for more unique situations, too, like getting a mortgage when you only have a temporary job. Additionally, they can walk you through each available type of mortgage and highlight the choices most relevant to your situation. An extra service to keep in mind: mobile mortgage specialists can work with you remotely.
Let’s look at some questions you may want to ask your mortgage specialist. We’ll start off with some questions that nearly every borrower can benefit from, then look at a few that have a more narrow application — but are especially important to the people who need to ask them.
1. Can I get pre-approved for a mortgage?
Mortgage specialists can offer pre-approval, which makes it that much easier to purchase a home. The Financial Consumer Agency of Canada explains that mortgage pre-approval helps you understand the total mortgage amount you could qualify for. It additionally provides an estimate of your potential monthly mortgage payment.
Pre-approval also sets your mortgage rate for a period of time (60-130 days). You won’t need to worry about interest rates changing and affecting the overall cost of your mortgage.
With pre-approval, it’s easier to narrow down the list of homes you’re interested in, and find one that aligns with your financial position.
Keep in mind that pre-approval isn’t a full, 100% guarantee that your application will be approved. However, your mortgage specialist can talk to you about the nuances of this process. Be sure to ask them about pre-approval.
2. What interest rates and terms are available?
Your mortgage specialist can access all of the information needed to answer this key question. Interest rates are dependent on many factors, according to the Bank of Canada. That includes:
- National and international economic forces and developments
- The Bank of Canada’s own policy interest rate
- Your own credit history
- The specifics of the mortgage you want. You may have to pay more to keep a fixed interest rate locked in for as long as possible, for example.
Mortgage specialists can explain the options their institution offers, as well as the influence of the factors outlined above. That helps you become more informed and supports good decisions when it comes to buying a home.
3. What types of mortgages does your institution offer?
Not every credit union, bank, or other lender has the exact same portfolio of mortgage products. For example, we offer a wide range of mortgages for everyone from first-time home buyers to those building a new home from the ground up.
Be sure to ask your mortgage specialist about the types of mortgages available and how each could benefit you as you buy a home.
More specific mortgage questions
If you fit into the circumstances detailed in the questions below, make it a priority to raise the topic with your mortgage specialist.
4. Can you get a mortgage after a debt management plan?
A debt management plan helps individuals address existing debt and, ideally, end the plan with a stronger credit score and more stable finances.
Recent completion of a debt management plan may discourage lenders to an extent. However, the note about completing a plan will drop off of a credit report after two years.
There isn’t a cut-and-dried answer to this question, so it’s especially important to bring it to your mortgage specialist.
5. How do I go about getting a mortgage in a different province?
Factors like property transfer taxes and fees and the need to show proof of employment can make buying a house in another province feel a little more difficult than the normal process.
However, it’s possible to secure a mortgage for a home in a new province as you plan your move or shortly thereafter. Talk to your mortgage specialist for more guidance.
6. Can you get approved for a mortgage after bankruptcy?
There’s no absolute rule or categorical denial that stops every person who went through bankruptcy from receiving approval for a mortgage.
However, lenders will want anyone who recently discharged bankruptcy to demonstrate things like a strong re-established credit score and manageable debt.
A mortgage specialist will help you better understand the requirements of their institution and things you can do to be seen as a more desirable borrower.
7. How can I get my first mortgage?
Innovation is proud to offer a first mortgage program that leverages the money-saving first-time home buyer incentive program, helping you buy your first home.
It all starts with opening a new account with us. Apply for an account in minutes!