We are mortgage brokers who help people from all sorts of financial backgrounds get the best mortgage rates available in London, Ontario and across Canada. What we find is that many of our clients have received bad advice--or worse, no advice--from other mortgage brokers when it comes to how to avoid common mortgage mistakes. Because we’re mortgage specialists dedicated to helping you with your finances and not just making a quick deal, we like to take the time to educate you on how you can easily structure your mortgage and other financial products in ways that make the most sense (and cents!) for your situation.
We’ve seen a lot of financial mistakes in our many years of helping people, but here are some of the top ones that you should try to steer clear of:
1) Choosing a mortgage product that’s not right for you
Not all mortgage products are equal. Take the time to learn your options. Learn the difference between a fixed and variable rate, for example, and which option might work better for you. There’s no need to get overwhelmed! As London, Ontario’s favourite mortgage brokers, we are here to help you become informed to make the best decision for you.
2) Automatically renewing your mortgage
Even if you got the best deal in the mortgage market at the time that you bought your house, when it comes time to renewing your mortgage, you’ll likely be surprised to find that you can find a better rate elsewhere or with terms that are more suitable to your current financial situation. According to a 2011 survey, almost ⅔ of Canadians stay with their current mortgage and don’t negotiate their mortgage renewal, which are two mistakes that can cost you a lot of money over time.
3) Signing on the dotted line right away
Sure, it’s easier to just sign away and get the deal done, but before you agree to the terms of your mortgage, make sure you fully understand what the agreement entails. Read every document through thoroughly, and of course, feel free to ask away if there’s anything you don’t understand.
4) Maxing your credit limits
This one seems like common sense, but maxing your credit cards and lines of credit can often make it really difficult to qualify for the mortgage you want. Lenders look closely at your debt-to-income ratio, so taking a bit of time to pay down your debts can make a big difference when you’re getting ready to apply for a mortgage.
5) Having a long-term financial plan
We aren't just mortgage brokers. We’re also here to help you realize all your dreams with the help of some strategic financial planning. One critical mistake that you want to avoid is making large purchases, such as a car, if you are hoping to qualify for a mortgage in the foreseeable future. Wait until your home purchase is complete before looking for your car, as your debt-to-income ratio will be negatively affected if you do it the other way around, and could hurt the amount of a mortgage that lenders see you being able to afford.
Come talk to us to learn more about these and other common mistakes and how we can help you get a mistake-free mortgage!
Thanks for reading!
Your London, Ontario Mortgage Brokers at Dominion Lending Centres Forest City Funding FSCO# 10671