Financing a new home is challenging because most lenders and banks offer different interest rates. However, according to industry experts, there are eight ways to save cash on a mortgage.

Credit Scores and Payment Plans

Maintain a Good Credit Score

If your credit score is great, the interest rate on your mortgage is likely to be lower. To maintain
an excellent score, it’s important to pay your debts on time (credit cards and loans), and also
monitor your score and take note of any changes. Errors should be reported and corrected
before any new loan is processed.

Seek a Long-Term Mortgage

A typical mortgage in Canada has a 5-year term with a 25-year amortization period. By
choosing the longest possible amortization period of 25 years (as opposed to 20 years for
example) you will reduce your scheduled payment amounts, however, because the time frame
is longer your total interest charges over the life of your mortgage will be higher.

Financing with the Long Term in Mind

Build Loyalty

By consuming other banking services, the staff will know that you are a long-term client, and
may be in a position to secure you a better mortgage rate. Typical services worth considering
include insurance coverage, savings and TFSA accounts and retirement investments.

Shop Around

Don’t simply go to your own bank for financing. Instead, shop around on-line and by contacting
a mortgage broker. It may be that your bank will match any other offers you receive, but it’s
good to educate yourself on all the possibilities.

Carefully review all fees involved in the loan process

To secure cheap financing, you must consider other things during the loan process, such as
hidden fees which can increase your costs fairly quickly. This is why you must review every
contract carefully and thoroughly.

Ensure accuracy and show a strong work history

When filling out a loan application, ensure accuracy when detailing your investments or your
salary. Errors or discrepancies, if discovered, could put a potential loan in jeopardy.
Lenders also like to work with people who have stable employment. If you have worked
consistently for two or more years, you will have a better chance of obtaining a loan.

Get a Co-Signer

In some cases a lender may provide a better lending rate if you have a strong co-signer.
However, finding a co-signer is not easy because a loan is a huge responsibility. To avoid future
financial problems, you should strive to set clear guidelines before signing any contract with
another party.

How can Alair Homes help?

Reputable builders who have been in the business for years should have developed a network
of local banking and mortgage broker contacts. If you’re new to an area, or you want to shop
your mortgage around, make sure to ask us at Alair Homes North Vancouver for recommended contacts. We
want you to have to the best financing in place for the beautiful place that you call home.