How to Improve Your Credit Score to Get a Better Mortgage Rate in Canada

Mortgage Tips Alex Seleznev 10 Apr

If you’re looking to get a better mortgage rate in Canada, it’s important to have a good credit score. Here are some tips to improve your credit score:

  • Try to use less than 35% of your available credit: This means that you should try not to use more than 35% of the credit that you have available to you. For example, if you have a credit card with a limit of $10,000, you should try not to use more than $3,500 of that credit.
  • Increase the length of your credit history: This means that you should try to keep your credit accounts open for as long as possible. The longer your accounts are open, the better it is for your credit score.
  • Review your credit report at least once a year: This means that you should check your credit report at least once a year to make sure that there are no errors or inaccuracies on it.
  • Correct any errors on your credit profile: If you find any errors or inaccuracies on your credit report, you should contact the credit bureau and have them corrected.

 

Cleartrust is a Canadian mortgage brokerage that can help you find the best mortgage rates in Canada. They offer personalized advice and can help you navigate the complex world of mortgages. You can contact Alex Seleznev at alex.seleznev@cleartrust.ca or call (416) 357-6311 for more information. You can also book a 30-minute meeting with Alex at https://calendly.com/alex-seleznev.

5 Tips for First-Time Homebuyers to Secure a Mortgage

Mortgage Tips Alex Seleznev 10 Apr

5 Tips for First-Time Homebuyers to Secure a Mortgage

  1. Get a real pre-approval Getting pre-approved for a mortgage is an important first step in the home buying process. A pre-approval will give you an idea of how much you can afford to spend on a home. It will also help you determine what type of mortgage you should be looking for.
  2. Know your numbers Before you start shopping for a home, it’s important to know your credit score. Your credit score will play a big role in determining whether or not you qualify for a mortgage.
  3. Don’t let FOMO be your main motivation It’s easy to get caught up in the excitement of buying your first home. But it’s important to remember that this is a big financial decision that should not be taken lightly. Don’t let the fear of missing out (FOMO) cloud your judgment.
  4. Future-proof your buying decision When buying your first home, it’s important to think about the future. Consider things like how long you plan to live in the home, whether or not you plan to start a family, and how much space you’ll need as your family grows.
  5. Don’t be too proud to ask for help as a first-time home buyer Buying your first home can be overwhelming. Don’t be afraid to ask for help from professionals like real estate agents and mortgage brokers. They can help guide you through the process and answer any questions you may have.

If you have any questions or would like more information about securing a mortgage in Canada, please contact Alex Seleznev at alex.seleznev@cleartrust.ca or call (416) 357-6311. You can also book a 30-minute meeting with Alex at https://calendly.com/alex-seleznev.

A Comprehensive Guide to Mortgage Types for Homebuyers in the Greater Toronto Area

Mortgage Tips Alex Seleznev 10 Apr

There are many types of mortgage options available in Canada. These include:

  • High Ratio vs Low Ratio
  • Fixed Rates
  • Closed Payments
  • Convertible Mortgages
  • Hybrid Mortgages
  • Reverse Mortgages

High Ratio vs Low Ratio mortgages are based on the amount of down payment you can afford. A high ratio mortgage is a home loan in which the buyer’s down payment is less than 20%, meaning they have to borrow more than 80%. A low ratio mortgage is a home loan in which the buyer’s down payment is more than 20%.

Fixed rate mortgages are constant for the duration of the term. This means your rate is set for the first five years of your loan.

Closed payments usually limit the amount of extra money you can put toward your mortgage each year. Your lender calls this a prepayment privilege and it is included in your mortgage contract.

Convertible mortgages allow you to convert your mortgage from a variable rate to a fixed rate at any time during your term.

Hybrid mortgages are a combination of fixed and variable rates.

Reverse mortgages allow homeowners 55 years and older to convert their home equity into either a lump sum payment or monthly cash payment(s), generally for living expenses.

It’s important to work with a reputable mortgage lender who can help guide you through the process and answer any questions you may have. If you’re in the Greater Toronto Area, Alex Seleznev is a trusted mortgage broker with years of experience helping clients find the right mortgage for their needs. You can contact Alex at alex.seleznev@cleartrust.ca or (416)357-6311 for more information.

 

To book a 30-minute meeting with Alex and get personalized advice on which mortgage type is best for you, you can use this link: Calendly.com/alex-seleznev. Good luck with your home buying journey!