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Repeat Home Buyer
Applying For Your Second (Or Third, Fourth, Fifth) Mortgage
Whether you’re upgrading, downsizing, or simply moving, you may find yourself in a position to buy another home. That means taking advantage of your mortgage borrowing history to get the best mortgage rates and set your next home purchase up for success. But, how do you really get the most out of your financial position in order to secure the best home loan interest rate? That’s where a mortgage agent comes in. If you want to find out how I can help, contact me anytime. If you want to learn more about what you should be looking out for as a repeat home buyer, continue reading below.
What Should I Consider Before Applying For Another Mortgage?
While you may feel like a seasoned, professional home buyer, you shouldn’t get ahead of yourself. Besides the usual motions like finding a real estate agent and listing your current home for sale, applying for another mortgage carries both opportunities and considerations.
1. You Still Need A Down Payment
Remember the first time you saved up for a down payment long, long ago? Well, you may have to do that again. You may have equity saved already or have plans to sell your current home and use the earnings as a down payment — both of which will work just fine. But remember: although the standard for most lenders is 20% of the home’s value, through the Canadian Mortgage and Housing Corporation (CMHC), you may be eligible for mortgage loan insurance. This allows you to put down as little as 5% down, and while it’s especially helpful for first-time home buyers, it may suit your situation as a repeat home buyer, too.
2. Have You Checked Your Credit Lately?
If you’ve been making your mortgage payments on your current home, then your credit is likely in good standing. But, never forget the impact that other forms of debt can have on your score. Credit cards, school loans, car loans, and lines of credit can all seriously impact your borrowing ability, and it’s important to pay off as many debts as possible before you apply for a second mortgage.
3. Timing Is Everything
There is often a bit of juggling required when going between a home sale and a home purchase. If your home sale will be completed prior to your purchase, then you shouldn’t have any issues. However, if your purchase date falls before your sale date, you may require a bridge loan to cover the gap. These are all things that you can easily plan out and coordinate when speaking to a mortgage agent.
Why Choose A Mortgage Agent Vs A Big Bank?
Big banks are great for personal finances, but mortgage agents do one thing and one thing only: work hard to get you the best mortgage rate. Canadian mortgage brokers have access to a wide selection of mortgage lenders, which means that, in many cases, mortgage broker rates are lower than bank mortgage rates. It doesn’t stop at low rates, though. There are many more reasons why a mortgage agent is the best choice for your mortgage — find out what else sets us apart.
Contact Me
The Best Mortgage Rates Are Here
Do you have questions about your mortgage eligibility? Or, maybe you’re ready to apply for a mortgage or get a mortgage quote? Contact me anytime via call, text, or contact form. Find out why so many people trust mortgage agents to handle their home loans.