{"id":9829,"date":"2021-03-05T06:39:10","date_gmt":"2021-03-05T06:39:10","guid":{"rendered":"https:\/\/diamondlaw.ca\/?p=9829"},"modified":"2022-01-04T17:02:25","modified_gmt":"2022-01-04T17:02:25","slug":"tips-to-help-you-qualify-for-a-home-mortgage-loan","status":"publish","type":"post","link":"https:\/\/diamondlaw.ca\/real-estate\/tips-to-help-you-qualify-for-a-home-mortgage-loan\/","title":{"rendered":"Tips to Help You Qualify For a Home Mortgage Loan"},"content":{"rendered":"

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It may seem daunting at first, but qualifying for a home mortgage<\/a> loan in Canada is easier than you might think.<\/span><\/p>\n

The minimum requirements list can make you lose hope long before the financial advisor even looks at your application. Thankfully, there are many changes you can make to your day-to-day life that\u2019ll help you.<\/span><\/p>\n

The national and global economies are still trying to recover from the global pandemic. Although it created a buyer\u2019s market for property hunters, it also means lenders are even more selective in handing out credit.<\/span><\/p>\n

That doesn\u2019t help the average person qualify for a home mortgage loan. Your application needs to be pristine — but we are here to help you make that happen.\u00a0<\/span><\/p>\n

Stabilize Your Income<\/b><\/h2>\n

Buying a home is a huge step in any person\u2019s life. You need to plan for it and take the proper steps leading up to your first application. You can start planning for your mortgage application years in advance. Buying a home is a long-term commitment, so your planning leading up to your first offer should be, also.<\/span><\/p>\n

It\u2019s essential to prove your repayment capabilities. This means the longer you are with one employer, the better your chances are for approval. Yes, a home is a fixed asset, and banks use it as a surety, but they want to prevent any foreclosure as much as you do. If you (and your partner, if applicable) have stable full-time employment, it adds immense value to your application.<\/span><\/p>\n

Also, the ongoing pandemic has placed a strain on financial institutions, just like it has on individuals, and they want to minimize any additional risk. If you can deliver proof that your full-time employment is secure to see it through the pandemic, it\u2019ll increase your chances further.<\/span><\/p>\n

People without that kind of stable employment can still apply for a home mortgage loan but expect to pay non-preferential rates that can add thousands more to the cost of your home.\u00a0<\/span><\/p>\n

Things get a bit more tricky if you\u2019re self-employed. If that\u2019s the case, you will have to prove that your business is going to stay afloat. If your company has been operating for a couple of years, it gets easier. Either way, you\u2019ll have to deliver a complete set of financials to set the lenders\u2019 minds at ease.\u00a0<\/span><\/p>\n

Whichever boat you\u2019re in, it\u2019s a good start to contact <\/span>Diamond and Diamond<\/span><\/a> for a free consultation to help you better prepare for your application.<\/span><\/p>\n

Aim for a Larger Down Payment<\/b><\/h2>\n

The one unchangeable aspect of all mortgage applications is that you need a down payment. It\u2019s a good investment as it\u2019ll decrease your repayment installments and interest paid.<\/span><\/p>\n

In Canada, the size of the down payment depends on the home\u2019s price:<\/span><\/p>\n