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Top Tips for Getting Your First Mortgage

Taking out a mortgage is likely one of the most significant financial decisions you will ever make. With the rising property prices in Canada, more people are looking to take out a mortgage to purchase their first home.

If you’re currently looking to buy a new property, here are some top tips to improve your chances of being approved for a mortgage.

Improve Your Credit Score

Credit scores are categorized as poor, fair, good, very good, and excellent in Canada using a scoring system between 300-900. The category you fall into depends on your previous financial decisions. Being in debt and having several late payments will lower your score, making it less likely for your application to be accepted. 

Mortgage lenders will use your score to determine how financially trustworthy you are. They want to lend to people who will be reliable in making their monthly repayments. You can check your credit score for free online to see whether or not you need to improve it. 

There are a few things you can do to increase your credit score

●       Pay your bills on time

●       Avoid overspending

●       Pay off any existing debt

●       Avoid applying for more credit than you need

Start Saving

To get a mortgage and buy a property, you will need a deposit. The higher your deposit, the lower your mortgage will need to be, and the less interest you will end up paying. It’s worth saving as much as possible before you approach a mortgage lender for this reason.


Maintain a Stable Income

You will be asked to provide proof of finances and current income so the lender can be sure that you can afford your monthly repayments. The process involves providing bank statements and wage slips from the past year or two. For this reason, it’s a good idea to keep your day job if you want a mortgage. A long-term, stable income works in your favour. 

If you’re self-employed, your situation is a little more complicated because your income may be inconsistent. You will need to provide additional details regarding several years of your previous income, but it’s still possible to get yourself a mortgage.

Get Professional Advice

Getting a mortgage is a significant investment, so it’s worth taking the time to speak with a financial advisor who will guide you through the process from start to finish. They will advise you on the best mortgage options for you based on your current finances. Professional advisors can also help you find the best mortgage rates across the country, making it easier for you to be approved.

Final Thoughts

Before you apply for a mortgage, you need to focus on getting your finances in check. Work to improve your credit score and pay off any remaining debts. Even if you’re not ready to buy a property right now, being prepared for when you do want to invest is one of the best things you can do.

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