COMMON QUESTIONS

WHAT SHOULD I DO AS A FIRST-TIME BUYER?

Step 1 is to get pre-approved for a mortgage. A pre-approval lets you know how much you can spend and locks you in at the current interest rate for 90 days or more, allowing you to shop with confidence. 

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Step 2 is to write down a list of the things that are important to you when it comes to your first house. Separate the list into two columns: “must-haves” and “would-be-nice.” The list will come in handy when viewing homes, especially if a particular property shows well, but doesn’t have the things that matter most to you.

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Step 3 is to keep an open mind. 

It’s rare for a first home to be a 10/10 in all categories; however, it’s quite possible to find a home you fall in love with, which is also one that checks most of the things off your wish list.

In fast-paced markets where multiple offers are the norm, it’s possible that you may miss out on the first home you’re drawn to. It’s important to remember that the right home for you is still out there, and in some cases, you’ll be relieved you missed out on an earlier home if you eventually find something better.

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Step 4 is to ask questions. Never be afraid to ask. There are no stupid questions.

DOES A HIGHER CREDIT SCORE MEAN A BETTER MORTGAGE RATE?

Your credit score is a measure of your financial health. According to the Government of Canada, your rating “indicates the risk you represent for lenders, compared with other consumers…The credit-reporting agencies Equifax and TransUnion use a scale from 300 to 900. High scores on this scale are good. The higher your score, the lower the risk for the lender.” Thus, a higher rating will typically secure a better mortgage rate, since you’re considered to be more likely to make your scheduled payments.

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If you have a poor rating, do some damage control before you apply for your mortgage.