Get a pre-approved mortgage

By Laurent Fontaine

May 27 2008

Make an appointment with a bank, financial institution or mortgage lender before you start shopping for a home in order to discuss your options and get a pre-approved mortgage. That way, you’ll know exactly how much you can spend on your new home.

Most financial institutions offer pre-approved mortgages, whereby the lender commits to giving you a mortgage loan at a specified interest rate guaranteed for approximately 60 days.

The mortgage process can be difficult to understand. To avoid getting bogged down by details such as whether to choose a 10- or 25-year amortization period, a fixed or variable rate mortgage, a non-negotiable closed term with fixed payments or an open or convertible loan with higher interest rates that may fluctuate and the option to make accelerated payments, take the time to learn about all of the options and how they will affect your monthly rate.

Be sure to ask lots of questions and compare various institutions’ rates and products. In addition, try to negotiate your mortgage rate - you may get a deal!

See related articles

Choosing the right location
Start by making a list of all the features you want in your new home, then use the list to target your search.
Exploring the neighbourhood
Once you have started narrowing down your choices, explore every nook and cranny of the neighbourhood. Take the time to visit the area at different times during the week, and ask yourself the following questions.
Your credit rating is your best ally
Unless you’re independently wealthy and can pay for your home in cash, you’ll need to take out a mortgage. Before granting you a loan, your financial institution will conduct a credit check to determine your creditworthiness, which is reflected by your borrowing and repayment history.