Quickfire Mortgage Solutions are licensed with DLC Brokers For Life.

The Gist:

• When it comes to mortgages, it’s important to get things approved as quickly as possible, especially at the preferred price point that you are looking to buy in. As the dollar is stretching more than before, an early conversation with the experts can open up an array on options that you may not have thought of otherwise.

• Due to COVID-19, there is a significant change in the utility of a home. Previously, people would buy property to live out of, where as now with working and schooling from home, you need a home to live in. Therefore, there are some different characteristics that are more important when buying a home lately.

• The value of a house is comprised of where it is, what it is, and how well it has been taken care of. Since commute is being considered less and less, buyers can focus more on the characteristics and condition.

One dominating aspect related to getting approved for a mortgage is qualifying with the “Stress Test”

• The Canadian governments required rate to qualify for mortgages has slightly decreased in recent times due to COVID-19. This gives potential buyers an idea of what they’re going to pay during an increasing rate market, which is what we’re in right now.

• At a balanced market, the mortgage interest rates are around 4.25%, which is pretty low against historical rates. COVID-19 is the only reason for the current sharp decrease, which is going to climb again in the future.

• At the present rate, if a buyer has a mortgage of $100,000, the monthly payment is around $500. This is making it easier for buyers to buy a larger house with lower monthly payments.

The Mortgage Process

• Buyers often wonder about the amount of time and energy they’re going to be committing to the whole mortgage process. In reality, educating the buyer is 99% of the job, and getting the mortgage is the remaining 1%. The education enables the buyers to be confident about what they can afford and what they’re getting into.

• Quickfire Mortgage Solutions keeps the buyers comfort in mind when it comes to choosing lenders, with access to 30 different lenders including the majority of big banks.

Performance Related to the Pending Period of a House Purchase Gets Most of the Focus These Days.

• Sellers are taking advantage of competition among buyers in the market, and can put them into a narrow space for pending periods.

• If you seek out the right experts, getting financing approved can be a quick one-hour process.

• Experts at Quickfire Mortgage Solutions take care to get approval in place well in advance. Since they work in high volume with the lenders, they’re in a position to handle right conditions for approvals, ask for exceptions, and help with timelines.

• The process takes a lot of back and forth communication among the different parties involved, but buyers can just sit back while the experts take care of it, until they get handed the keys to their new house.

There are a few things buyers should be aware of before getting approved for a mortgage

• Learn about the restrictions on the ability to move the mortgage within the specified time period. Some ultra-low discounted rates come with restrictions on the ability to move the mortgage without first selling the house.

• Compare how the penalties are calculated at different lenders. A big difference between monoline lenders and big five banks is their penalty calculation process. For big banks, the penalties are somewhere between $24,000 and $60,000 if you want to break the mortgage early.

• If you’re thinking of having a second suite in your house, you have a few additional options available to you. During calculation, half of your potential income from that suite can be added back to your monthly income even before you make that purchase. This increases your purchasing power and you can go for multiple suites if you want to with your potential income.

• If you have a condo in mind, you should revisit that strategy. If you go for a mortgage for a house instead of a condo, you can put that condo fee — which is detrimental to qualification — into the mortgage and that would give you lots of leverage.

🏡 Want to get started on your home search?

Here is where to start:

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