Getting Pre-Approved

When you are pre-approved for a mortgage, it means a lender has looked closely at both your credit report and your income and determined that you qualify for a mortgage. The lender will tell you the maximum amount of loan it will make, which loan programs you qualify for, and will discuss the interest rates it will offer for different types of mortgages.

If you are considering buying a home with less than 20% down payment - your mortgage application is required by law to be insured by the Canadian Mortgage and Housing Corporation or Genworth Financial Canada. Mortgage insurance makes it possible for you to purchase a home using a lower down payment. Since it protects lenders and investors against loss if the mortgage loan is not repaid, it allows the lender to approve your mortgage with as little as a 5% down payment. There are some financial institutions that offer 0% down payment programs - speak to your lender or mortgage broker about their available options.

Once you're pre-approved you can go shopping for a property with confidence about your buying power. To a Seller, a pre-approval identifies you as a serious buyer. Being a pre-approved buyer may also give you some leverage when negotiating for price with the Seller. It may also make your offer more appealing over competing offers from other buyers who are not pre-approved.

If you are considering the option of building your home or restoring a vintage home, Gina is experienced and knowledgeable when it comes to new home construction and home improvement financing. She will work with you to help you choose your home or building location and help you work with your mortgage professional to amortize improvements, renovation or construction.

Next: Choosing a Home