Looking to get a mortgage and need some guidance?
You’ve probably been doing a lot of research online looking tips and best practices to make sure you don’t make any mistakes. How much income will you need to afford the house you want to buy? How much debt can I carry without getting into trouble? What sort of guidelines do the banks and the government have in place? These are all questions that you should be asking and getting answers for.
A mortgage is a big commitment and not something that you can easily get rid of, so making sure you are getting the best deal (and not getting into trouble) is worth the extra time and research when it comes to getting your first mortgage.
Most first time homeowners will go the conventional route when getting their first mortgage, which usually means going through a bank or mortgage broker. Some first time homeowners may have poor credit or unusual circumstances, which means they may need to look for alternative financing for their mortgage.
Jeffrey Hristovski, President/Principal Broker of Mortgagemeister.com, a private mortgage company in Toronto, does not recommend the private mortgage route for first time homebuyers, but to spend more time saving for a down payment and improving their credit scores as a private mortgage usually comes with higher rates and additional risks, which is more suited for experienced homeowners and real estate investors.
If you do not have a mortgage broker or bank to work with and are unsure, most quality real estate agents will have a list of high quality and trustworthy mortgage brokers they can recommend. Our real estate agent in Vaughan recommended the mortgage company we ended up using and we were very happy with the service and went on to use them two more times over the years.