Getting a mortgage; where to start?

[Ducay]

Hey all, figured Id ask CP for some input before Id blindly walk into a bank and look like a putz.
Just looking for some input into how the whole system works and any other opinions.
So basically, Im looking to get my first home come this summer, most likely looking for a condo/apartment/townhouse.
Anyone in the industry? Whats it like out there for younger people now?

[Phanuthier]

Have you thought about going to a mortgage broker?

[Ducay]

I have, but don't really know where to start. I was hoping someone here could shed some light. I know I could just go make an appointment with one, but Id rather get a decent feel for the whole thing first. (aka, what sort of chance do we stand).

[JiriHrdina]

Mortgages are a lot more flexibile now than they were in the past. When I got mine I was self-employed, and had been in school for the 2 previous years, so my income level was not great, based on the previous years. But even with those factors I had no problems, largely because my credit rating was strong.

Going through a broker is the best route - because they are charged with the responsibility of looking after your interests, as opposed to a bank that ultimately has a limited range of products they can offer you.

I have a good broker, if you want the name PM me. If memory serves though there may even be a broker here in CP.

[Ducay]

Originally Posted by fotze

and because as we are finding out, the banks would give a golden retriever a mortgage if it walked in with a wallet duct taped to its collar.

This is what I am curious about. Some friends of ours were having issues getting approved for a decent mortgage. I wasn't sure if it was them, or if the mortgage market is insanely risk adverse right now.

[Slava]

Lending is beginning to tighten to say the least. The lenders are definitely more risk adverse than they were a year or two ago. Of course the amortization periods are shortened and you need to put more down, but that is the tip of the iceberg.

I would recommend using a broker as well though; they will get you the best rates and will shop things around for you so that you don't have to.

[Table 5]

Mike Oxlong (not his real name) has been more than helpful with my mortage. As someone who is basically in the same boat as you Ducay (young, buying first home, mentally stunted when it comes to home ownership) I'd recommend talking to him...

[Russic]

When my wife and I started going to a financial adviser he turned us on to a mortgage broker based out of BC. She was absolutely awesome and I'd recommend her to anybody. She got a really good deal and also has connections to the other necessary people in the home buying chain (realtors, lawyers etc.). I'll pm you her info.

[GoinAllTheWay]

Originally Posted by Table 5

Mike Oxlong (not his real name) has been more than helpful with my mortage. As someone who is basically in the same boat as you Ducay (young, buying first home, mentally stunted when it comes to home ownership) I'd recommend talking to him...

X2, the man knows his stuff. Send him a PM, sure he would be happy to help you out.

[Mike Oxlong]

Thanks for the kind endorsements Table and GATW.

Ducay I got your PM and sent you back my contact info.

As Slava mentioned lenders have tightened up on lending policies recently but that's not to say there aren't still lots of options out there for you.

It is tougher for Golden Retreivers to get mortgages now even with wallets taped to their collars. But if they have decent credit and good income it can happen.

Obviously I am biased but it is definitely to your benefit to use a mortgage broker. We have access to a bunch of lenders and we can shop your application around to find the best deal for you in the same time it takes you to set up an appointment with your bank. Plus your bank is only going to present you with a limited number of options, most that benefit them more than you.

Best part of all is my services are totally free to you.

[GGG]

The other thing to do is read through all of the pages of fine print in your mortgage documents and ask questions if something doesn't make sense. We don't have the crazy resetting morgages that the US had but if you are looking at variable rates understand how your payments will be recalculated and how it will affect your Total Cost of borrowing. Also take a look at any repayment penalties and penalties to get out of your mortgage early if something happens.

Be informed when you sign the documents.

[Ducay]

Thanks for all the replies and PM's guys, looks like Ive got about a half dozen of brokers recommended to me lol.

I think the main thing I need to figure out is whether or not we'll be able to get a mortgage in the summer when our job contracts dont start until sept (although we'll be working elsewhere during the summer).

[MoneyGuy]

I send all my clients to mortgage brokers (or refer them to Manulife One, depending on the situation). ONe of the brokers I use have managed to get mortgages for clients when they had been told by other lenders they couldn't do it.

[metal_geek]

I've been through 6 mortgage processes over the last 12 years, and have spoke with a few mortgage brokers during the process and there are some good things and bad things about them. I don't want to bash mortgage brokers, but some a just horribly shady... Any CP mortgage broker excluded of course

I recently obtained a mortgage on another property, albeit tiny, but was crazy hard to obtain compared to anything I've done in the past. Credit history and debt service ratio not being an issue, I would have thought it would be way easier then it was. Granted this was for a second property so that may have thrown up flags in the current enviroment. I was turned down by a conventional bank, had a mortgage broker offer me a mortgage that I turned down, went to another conventional lender and got excatly what I wanted.

Whatever way you decide to do it, sit down and figure out your monthly debts and income. Get a copy of your credit report. Write down your employment history, and current employment status. Know what the current intrest rates and mortgage options at "conventional" institutions are. Learn about Terms, Down payments, High/Low ratio mortgages and the fees involved with each. Find our what your Debt service ratio is. Don't think you have to take a mortgage cause you were "lucky" enough to get one, if you don't like the deal either don't do it or find another deal.

It's always best to apply when you have been working for a while previous, and can show steady income in the past few months. Its better to apply while you are working, then when you are NOT. It's better to apply BEFORE you stop working then just after you start...

[Ducay]

More great info everyone. Looks like I'll start getting into the process come the new year. From what I gather I may need someone to co-sign on the loan as I wont have started my full-time career then.