Lethbridge Mortgage FAQ
Where can my down payment come from?
Your down payment can come from the following sources: bank account savings, investments/RRSPs, family gift, inheritance, sale of an asset (vehicle, etc), sale of your home, HELOC (home equity line of credit), Unsecured line of credit, and the lottery (if you are very lucky).
How long do I have to work at my job to get approved?
Technically, ZERO days! If you are taking a new position at a completely different position, but it happens to be in the same industry or same type of position you may not need work more than a month. As long as there is no probation period, and either your hours are guaranteed, or on a salary, you shouldn’t have much trouble. It comes down to reasonability. Can we give the bank a solid reason to believe your new position/job is safe, secure, and consistent.
How many credit cards should I have for good credit?
TWO! No more, no less. The trick I tell my clients is, use one credit card for day to day expenses, etc. This keeps your credit score active and building. The other credit card is just for looks. It is the make-up for your credit bureau. Once you activate the second credit card, you can cut it up if you want and throw it in the garbage. Why? You do not plan on using it, so get rid of the temptation to use it, or the risk of losing it. The purpose of the second card that is un-used, is to prove to the bank and credit companies that you are able to have access to debt and still choose not to use it. Make sure there are no annual fees to the card. Email firstname.lastname@example.org for my Tips and Tricks document on building and maintaining credit.
What makes me the best mortgage applicant?
Credit. Income. Downpayment. Their importance is ranked in that exact order.
What is the best rate?
The best rate is the lowest interest rate combined with the best product for your needs. The “lowest rate” could be the worst product for you, and therefore cost you thousands of dollars because you made an emotional decision on the low interest rate. The best rate is the one that is the lowest available interest rate on the ideal product for your real estate goals and needs.
How much down payment do I need to have?
5% down is the minimum down payment. As long as you are buying an owner occupied home (you live in it), you just need 5% down. Even if you own 25 rental properties, as long as you are moving into it as your primary home or a vacation home, 5% is all you need.
Cost of a mortgage broker?
How does your Mortgage Team work?
My team is are licensed mortgage brokers that have a specific role in the mortgage approval process. They are specialists at closing deals with banks and handling all the paperwork under the sun! You will meet and get pre-approved by me (Graham). You then make an offer or refinance which makes your mortgage become a “live” active mortgage. This is where my team comes in. They will take the paperwork and information I have on your file and start working with the banks negotiating with many lenders ensuring we get the best product and rate. I will oversee the process and once it is approved we will meet in person or over the phone. We will go through the your approval, and the remaining paperwork will continue to be handled by my capable team. All documentation is provided directly to my team for efficiency and they will ensure you close your mortgage on time and easily. They will also make sure that your lawyer has everything needed. Before you know it, the whole mortgage process is over!
Mortgage brokers just use online and broker-only banks?
There are dozens of banks we work with. We will suggest the best product and rate possible for you, because that is our job. Although, if you request a specific bank such as ATB, TD Canada Trust, Scotiabank, First Choice, etc, we would be more than happy to use them for you. We understand the value of having all of your mortgages and banking under one roof. You can always request a specific bank or mortgage lender if you would like.