Whether you are a novice in buying homes or a seasoned buyer, we guarantee you can greatly benefit from the expert guidance of the team at Coastal Mortgages. Coastal Mortgages understands the specific needs of individual buyers and will help you make decisions that will positively influence your success in the real estate market.
The purchase of a home is the largest, single purchase most people make during their lifetime. At Coastal Mortgages, we want to make every buyer aware of the many mortgage options available to them prior to their purchase and closing date. Now, more than ever, financial institutions are regularly launching new products and programs, making it easier to get into a new home sooner. Today, interest-only loans, self-employment programs, rental purchase programs, vacation property programs, and a host of other innovative financing alternatives are being created to make home ownership a reality for more people than ever. If you have excellent credit, Coastal Mortgages has access to the very best products and rates available across Canada. Alternatively, if you are like so many others and have less than perfect credit, we also have flexible alternative financing to help you get into the housing market.
A pre-approval is an approved mortgage amount held for the approved client at a specific rate for normally 90-120 days. There is a difference between a rate hold, and a firm pre-approval. Although a rate hold, or rate guarantee, is very important especially during times of increasing rates, it is only holding a rate, rather than fully pre-approving the client and their required documents. Once you are pre-approved, the only thing left to approve is the property. We strongly encourage our clients to get pre-approved because not only is it extremely important to hold rates, it is imperative that you understand your maximum mortgage amount. The amount you will be pre-approved for will depend on your credit bureau, your income amount and your monthly debts. The criteria is normally that your monthly mortgage payments and housing costs can not be more than 32% of your total qualifying monthly income (Gross Debt Servicing Ratio or GDS). In addition, your monthly mortgage payments, housing costs, credit card and loan payments combined, can not be more than 40% of your total qualifying monthly income (Total Debt Servicing Ratio or TDS).
The documents required from you to have a firm pre-approval include:
- Credit bureau report
- Income confirmation
- Down payment confirmation
Preparing yourself with a pre-approval well ahead of the buying process allows you the time to review, in detail, the mortgage approval, and the lender’s terms and conditions of the mortgage. A well-informed client makes better decisions.