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Whether you approach your bank for a mortgage or challenge tradition by seeking the guidance of a licensed broker, now is a great time to buy a home or invest in real estate. Rates are just points off the historical lows of 2016 but the down payment rules still apply - 5 percent for a house priced less than $500,000. While banks and credit unions offer the products of their institution, broker services include creative solutions for buying a home, including mortgages for first time home buyers, renewing or switching your mortgage to a new financial institution, renovation financing, debt consolidation and credit repair. RRSP and real estate investing are two more options offered by licensed mortgage brokers.

If you are one of thousands of self-employed entrepreneurs in BC or new to Canada, securing a mortgage can be particularly challenging. Mortgage brokers may be able to arrange financing for those of us having trouble getting approved by a bank, but have you considered rent to own as an option?

Seek Professional Advice Before Signing a Contract

It goes without saying [we all know this] that it is best to talk to a financial advisor or a licensed mortgage broker to review options and develop a plan unique to your life-goals – investments, retirement planning, home buying and selling. Given the dynamic and challenging times we live in and recent changes in micro and macroeconomic climates, seeking investment advice from industry professionals can save you anxiety and hard-earned assets. For those of us who see home ownership as a goal, rent-to-own purchasing may be the answer.

Does Your Credit Score Affect Your Interest Rate?

Simply put, yes, your credit score does affect your interest rate. With ever-changing mortgage lending rules there ends up being some increased complexity in the mortgage marketplace.  One of those changes that has happened over time is risk-based pricing. Basically, lenders are beginning to offer different rates based on a borrower’s credit score. This has not been adopted with every lender yet, but will likely become a lot more common.

Hiring a Mortgage Broker

Whether you are a first-time buyer or an experienced buyer with excellent credit, licensed mortgage brokers have access to the very best products and rates available across Canada. Mortgage Brokers, work for you, for free and are paid a finder’s fee by the lender. Brokers only pull your credit once, preserving your credit score, because although a few inquiries are okay, having multiple inquiries over a short period of time can have a negative impact on your credit rating.

Refinancing and Mortgage Renewals

Refinancing can offer many benefits, including a lower monthly payment, the ability to withdraw equity for renovations or to consolidate your debt. Brokers can negotiate on behalf of their client for customized solutions. If your mortgage renewal is coming up, it is a good idea to start shopping for a new term between four and six months before your current mortgage term expires. Many lenders send out your renewal letter very close to the time that your term expires and this does not give you ample time to arrange for a mortgage term through a different lender. Before you hear from your lender about renewing your mortgage term, have a licensed mortgage professional shop around for you. The savings may be substantial.

At Rosso mortgages we think it’s a great time to renew your mortgage. Rates have never been this low. Contact us to see what we can do for you. Email: mortgages@wesrosso.com Phone: 250-317-5360

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