HOW TO PASS THE STRESS TEST FOR FIRST TIME HOME BUYER OTTAWA

The stress test has been imposed by the government of Canada to reduce the people falling into debt traps. Getting a first time home buyer mortgage in Ottawa is not easy, especially if you have bad credit or are self employed. This stress test for first time home buyers looking for a mortgage in Ottawa is pretty stringent. They need you to be up to date and financially secure within all aspects and make sure that you will be able to pay off your first time home buyer mortgage from Ottawa easily!

What is a stress test?

A stress test is basically a method to see if you could survive the rise in rates and would be able to keep up with mortgage payments even if you lose your income or get demoted. First time home buyer mortgages are a simple process since such borrowers do not have much debt to their name. But now-a-days it has become harder for people to obtain such a mortgage because of the stress test. It tests your financial stability and endurance under stressful situations to make sure you can pay off your mortgage easily.

How to pass a stress test?

First time home buyer mortgages in Ottawa require you to meet certain requirements.

Your credit history and debt to service ratio are supposed to be well maintained.
Your income and financial position come under heavy scrutiny and are put under real pressure to see if you and your financed will be able to make it through difficult times and make payments for your first time home buyer mortgage in Ottawa.
Ottawa rules are getting pretty strict and hence it is of utmost importance that you come prepared for a meeting with your lender for a first time home buyer mortgage!

Ottawa rules state that, for a first time home buyer mortgage, you require your credit score to be excellent to avail the benefits of a normal score mortgage plan. The rates are currently on the rise and hence you can be sure to qualify for a lesser amount than you had originally planned. If you have too much debt, you need to work hard to make sure it is reduced from your first time home buyer mortgage application in Ottawa. It is better to work on your finances before you apply for your first time home buyer mortgage from a lender in Ottawa!

If you have bad credit or are self employed, you can opt for a private lender. This can help you escape the stress test entirely. But if you want to apply for a traditional plan, you really need to bring your finances up to the mark. That is probably the only way to pass the stress test easily. You can always take help from your broker. They can help you access proper deals and maybe even the mortgage amount you need with a better plan. Ready your finances to match the stress test and you are good to go!

To talk with our mortgage Advisers you can visit:Platinum mortgage Ottawa

Buying a home can be a tedious job no matter how many times you have done it. As the transaction value is too high and there are many government regulations that are to be considered, buying a home is always a big task. Especially for first time home buyer in Ottawa, it can be an overwhelming task to shortlist your options into home-ownership. Other than the location rates there are many dimensions of viewing a deal subject to the market scenario, home analysis, mortgage rates and opportunity costs. We understand a first time home buyer to opt for the first time home buyer mortgage as well as the mortgage lending options in Ottawa very well and can help you have the best mortgage rates.

Mortgage Pre-approval for the First Time Home Buyer in Ottawa

First Time Home Buyer in Ottawa can opt for mortgage pre-approval as it helps you shortlisting and also locking your rates. A Mortgage Pre-approval is nothing but an evaluation by a mortgage lender of how much you can afford and at what rate. By getting your mortgage pre-approved as in first time home buyer mortgage, you simply get an idea of the maximum value of a home that your current income can support. First time home buyers in Ottawa can get their mortgage pre-approved and also get eligible for a pre-approved rate. By fixing the rate, you can be covered from any future upward fluctuations in the rate as well as get benefited from any future decrease in rates. If a first time home buyer gets a pre-approval from a mortgage lender, the rates are fixed only for that particular lender and are not applicable for other mortgage providers.

first time home buyer mortgage

Tips to get Best Rates for a First Time Home Buyer Mortgage in Ottawa

To get the first Time Home Buyer Mortgage, it is necessary to know some small steps that can make a big difference in your mortgage eligibility and offer you a variety of penny-saving options. More than 90% of the homes in Ottawa are owned through a Mortgage. Usually, a minimum of 20% of the value of the home is paid as a down payment and 80% of it is mortgaged. As you pay off your mortgage payments at the pre-decided rate, you increase your equity in your home.

To get yourself the best rate you need to allow the maximum down payment that you can afford. By doing so you not only buy a smaller mortgage, but also save a huge amount flowing towards interest. Longer your mortgage more the dollars represent interest payments. Being a home owner for the first time can be overwhelming, but avoid regretting for paying extra dollars by opting for an expensive mortgage deal. Platinum Mortgages Ottawa serves you best with home purchase – from first time buyers to seasoned investors. Platinum mortgages gets the options and products available to those who are looking for mortgages save time and money. For those who are self employed and for clients with bruised or no credit, we provide the possible solution.

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