It can be tricky to get a mortgage application approved because there are still many factors to consider. A borrower’s spending and budget needs to generate a positive outlook for lenders and mortgage brokers operating throughout Canada.

In Canada, there are certain things to consider when wanting a mortgage application to be successful. Here are 7 different ways to ensure a mortgage will be given.

Save For a Larger Down Payment

Save for a larger down payment to ensure a lower interest rate and a better deal. As a mortgage can not be obtained without a down payment making a large down payment can provide great assistance and a better deal.

Have a Steady Income

Credit lenders will look at a person’s monthly income to ensure there are no risks in lending the money. Without proof of being able to pay the mortgage instalments, lenders will not give a mortgage. Having a steady income will improve the chances of receiving a mortgage easily.

Get a Pre-Approval

A mortgage pre-approval means that your mortgage amount, term, and the interest rate has already been approved. Pre-approvals are usually valid between 90 and 120 days, providing a lot of time to look for a dream home. This also makes it easier to submit an offer quickly on the house.

Finnish Paying Off Existing Debt

By taking up a mortgage, the borrower will have a long-term debt to pay off. To make things easier, current existing debt should be paid off before applying for a mortgage. Paying the mortgage off will be much easier when there is no other debt to pay off. Lenders also look at current debt and may push interest up due to it being seen as a high-risk mortgage.

By following this guide and considering all the important factors, it will be easy to obtain a great deal with lenders and a mortgage that is affordable. Applying for a mortgage is a big decision and needs to be done with a budget in mind knowing it can be afforded.