Here’s how you can increase your chances of getting the best rates.

1. Boost Your Credit Score

Your credit score plays an important role in determining how much mortgage you qualify for. High credit scores show lenders that you are a responsible borrower, which can lead to lower credit scores. To improve your score, be sure to pay bills on time, reduce credit card balances, and avoid applying for additional credit before applying for a mortgage. Regularly checking and correcting your financial statements for errors can also help.

 2. Save to Pay Large Premiums

Larger down payments reduce the risk for lenders and can lead to the lowest mortgage rates in Canada. If possible, aim to save at least 20% of the home’s purchase price. Not only does this help you avoid paying mortgage insurance, but it also increases your chances of qualifying for a better rate.

3. Reduce Your Debt and Income

Lenders look at your debt-to-income (DTI) ratio to determine your ability to pay a mortgage. A low DTI ratio (meaning you have few debts relative to your income) makes you an attractive lender. Pay off existing debts such as credit card debt and personal loans to improve your DTI ratio.

4. Get Pre-Approved for Limited Payment

Pre-approval shows lenders that you are interested in buying and have the means to do so. It also gives you a better idea of ​​what rate you might qualify for. Pre-approval can give you an edge when negotiating debt with lenders.

5. Shop Around

Don’t settle for the first mortgage offer. Lenders have different rates and terms, so it’s important to compare options. Consider using a mortgage broker who can help you get the lowest mortgage rates in Canada available from multiple lenders.

You should focus on these above points, you can improve your chances of qualifying for the lowest mortgage rates in Canada, making your home purchase more affordable.