So, you’re ready to finance your new home, or take an equity loan from your existing one – either way, you’re already focused on getting the lowest rate possible. Many people start their financing journey with a visit to the Canadalend Mortgage Calculator or any other tool that will accurately calculate monthly payment amounts and interest charges at various levels of borrowing.
While a Canadalend Mortgage Calculator calculates payments and budgeting, a deeper view will uncover savings opportunities that you do not want to miss; savings in the tens of thousands of dollars and the reduction of years off your mortgage.
The Best Rate Mortgage Calculator
The secret is really quite simple; pay your mortgage every two weeks on the day after you get paid from your employer. People often talk about the power of compound interest for savings, investing, and retirement planning; but the reverse effect can be yours on a lending product like a mortgage or home equity loan.
An honest, transparent mortgage professional will offer to show you how it works and advise you based on a balance of affordability and interest saving goals.
How to Guarantee a Mortgage Approval
The cardinal rule is to be realistic with what you can honestly afford. If deep down you know it’ll be a major stretch to meet all of the bills, chances are the mortgage underwriter will see that in the numbers. It’s the underwriter’s job to protect the assets of the lender, so you want to impress them, through your mortgage professional, with a deal that is within your affordability range.
Tip 1: Clear up all of your small balance credit cards; including the non-majors like retail stores and fuel; your approval ratios will include the assumption that your credit is at its maximum level; regardless of current levels.
Tip 2: Request a credit report from both Canadian bureaus; Equifax and TransUnion. A personal request will not affect your rating, so make sure to do this under your name. Often times, you’ll uncover reporting errors, or old credit that is no longer valid. Either way, clearing this up before it reaches underwriting will pay off.
Tip 3: If you are refinancing, the lender’s underwriter will request a current appraisal to be performed on your property. The process is generally a comparison of similar homes in your neighborhood, and their most recent re-sale values, along with a ‘drive-by’ visual inspection by the appraiser. You can follow this same process yourself and get a feel for what an appraised value might be.
So, with the 3 tips, a pad, paper and the Canadalend Mortgage Calculator, you can do a trial run in underwriting. Remember, the strength of your deal (its viability) will make a difference in the rate your mortgage professional will be able to negotiate for you. As always, doing homework up front pays off in the end!