Frequently Asked Questions About Explanation of Mortgages in Canada
Do I absolutely need a pre-approval in order to get a mortgage or home?
No. You do not need to have a pre-approval for a mortgage to get a home but it is highly recommended. This will ensure that you have secured funding already, have an amount you’re safely able to spend, and can purchase a home because you’ve done all of the financial footwork to do so.
What exactly will I need to qualify or to show the mortgage company to get the loan?
You should be prepared to show proof of a lot of things in your life, such as your income, place of residence, proof that you can pay for the closing costs and down payment on the home, the level of debt you have, any other assets yu might have, and proof of employment.
Some institutions might ask for more or less, depending on who you’re going through so it is important to be prepared in the event that something specific is needed to secure your mortgage.
Are there other costs associated with the mortgage?
Yes. There are other costs that you will have to cover when it comes to getting a mortgage. Depending on the amount you’re borrowing, you will have to put a percentage down on the loan. This will be calculated depending on the size of the loan and the specific mortgage you’re getting.
Consider these extra costs associated with a mortgage:
- Moving costs
- Closing costs
- Down payment on the home, depending on the size of the loan, this amount varies
- Legal fees
- Ongoing maintenance and repairs for the home