Due to a stricter set of laws in Canada, their home mortgage industry emerged largely unscathed from the massive bank meltdown in the US and most of the Europe. Even though Canada is the largest trading partner of the US, and their banking sector is intimately connected, they didn’t display the liquidity problem of their southern neighbors. In Canada, a person with a good business relationship and verifiable banking history plus permanent resident status can usually get a good mortgage there.
You Can Get A Lower Mortgage Rate In Canada
While it is possible to get a mortgage with only a work visa in Canada, you’ll have a much higher down payment requirement, possibly 35% if you don’t have permanent residency. In some cases, the bank will also require a deposit equal to years worth of payments that will only be released if your residency application becomes approved.
But, having a job does give a person a certain amount of leverage in negotiations to ask for a lower down payment, but sometimes the cost is a higher interest rate instead. Interest rates are at historic lows now and have been for nearly eight years with a few ups and downs occasionally, caused by market forces.
The Way To Find The Best Mortgage Rates In Canada
You’ll want to get all of your paperwork in order as far as residency, down payment, and time on the job, then begin your search. There are two different paths one can take, either going directly to the lenders, or by using a mortgage broker that may have some better connections in the marketplace.
A mortgage broker is usually an independent advisor and will have many diverse outlets offering different types of mortgages to individuals with various credit challenges. The lender usually pays the broker for their services, but that money ultimately comes from the borrower one way or another.
Many Canadian migrants have found brokers to be the best way for them to get a good mortgage in Canada because the have less experience in the market, less time on the job, and fewer long-term banking relationships in Canada.
A Mortgage Officer At A Bank Can Only Offer Their Bank’s Mortgages
Since the loan officer at a bank is employed by them, they can only provide the mortgages from their bank. If the market is tight at the time, there may not be a good selection available so the borrower will need to be ready to apply to many different banks and not depend on just one in particular.
If you pre-apply for your mortgage before you go looking at homes to buy you’re in a better position when it comes to making an offer. You’ll already know how much you can borrow and what the interest rate will be, so you won’t waste time looking at homes that are out of your price range, only to be disappointed when applying for a loan.
Plus, those that are pre-approved can jump to the head of the line when other buyers are looking at the same house since they can take care of the paperwork and move on much quicker.
For more help on getting a great mortgage in Toronto or anywhere in Canada be sure to contact the Sherwood Mortgage Group today.