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How to Prepare for a Mortgage Application: A New Year's Checklist

Reflecting on the rollercoaster of rates Canada witnessed in 2023, a growing number of homeowners are now looking forward to a potential decrease in mortgage rates in 2024, hoping it will pave the way to their dream mortgage. 


If you're ready to dive into your mortgage application, here's a New Year’s checklist designed to guide you towards securing the best rate for you.


✅ Save for a Down Payment 

The down payment required for your home purchase depends entirely on the property you choose. In Canada, the minimum is a 5% down payment, but if you can aim for a 20% down payment, it can significantly help you bypass extra insurance fees that might be included in your mortgage. 


Once you've determined the necessary down payment percentage for your chosen home, you can then customize your savings plan and budgeting techniques to meet this goal. 

To kickstart your savings journey, you might want to consider options like automated savings plans or high-interest savings accounts.


✅ Understand The Mortgage Landscape  

Take the time to familiarize yourself with fixed rate, variable rate, and adjustable rate mortgages to determine which one aligns best with your financial goals and circumstances. 

Additionally, staying informed about the current mortgage rates and their trends in Canada is key. By keeping a close eye on these rates, you can make a more informed decision that could save you money in the long run and ensure you choose a mortgage that truly fits your needs. 


✅ Gather Your Documents!   

Once you have secured the necessary down payment savings and have a firm grasp on the mortgage landscape, you are ready to start your application! The first step to beginning your mortgage application, is to gather all necessary documents. 


Make sure to gather key documents such as pay stubs, tax returns, employment letters, and bank statements. These items provide lenders with a clear picture of your income and financial stability. 


Having these documents ready and organized will streamline the application process and help lenders assess your financial health accurately. 


✅ Get Pre-Approved    

Remember the importance of shopping around for lenders. Don't simply settle for the first offer you come across. Take the time to compare the rates and terms offered by various lenders to find the best deal that suits your financial needs. 


Equally important is understanding the terms of your mortgage pre-approval. Be clear about how long the pre-approval is valid for and any conditions that may be attached to it. This due diligence will not only potentially save you money, but also ensure you are well-informed about the commitments you're about to make. 


✅ Stay Positive and Educated!     

The mortgage application process requires patience. It can be a lengthy journey, but maintaining focus on your end goal is vital. Throughout this process, remember that continuing to stay educated about the current market landscape will help you to better understand your rate. 


Don't hesitate to reach out to us for guidance and assistance. Our support and advice can be invaluable in navigating the complexities of mortgage applications and keeping you motivated towards achieving your dream of homeownership. 


Start Your New Years’ Checklist with Arise Mortgage

By following this checklist, you can enter the New Year ready to tackle the mortgage application process with confidence. Remember, the key is to start early and stay informed!


Get in touch with our team today, to begin checking everything off your New Years’ mortgage application checklist!

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