This valuable certificate, available to many home buyers and sellers in the GTA, secures a mortgage amount at a guaranteed rate (for fixed-rate mortgages) for a specific length of time. If interest rates increase, your rate will not. If interest rates fall, you get the lower rate. You're under no obligation to purchase a home within the time period.
Why is it important to have a pre-approved mortgage certificate when buying a home in Ontario?
A pre-approved mortgage certificate allows you to shop confidently, and provides you with the security of negotiating a house price that fits comfortably within your budget. The fact that you already have your mortgage financing arrangements in place indicates to prospective vendors and real estate sales representatives that you are a serious buyer.
What do I need to get one?
Personal information, including identification such as your driver's license.
Details of your job, including confirmation of salary in the form of a letter from your employer.
Sources of income.
Information and details on all bank accounts, loans and other debts.
Proof of financial assets.
Source and amount of down payment and deposit.
Proof of source of funds for the closing costs (these are usually 1.5 to two per cent of the purchase price).
An Ontario REALTOR® can provide even more information on pre-approved mortgage certificates – as well as other useful tools and techniques that will help you get a great price for your ideal home. To contact the GTA realty sales representatives and brokers at Living Realty today, call us at the office closest you or CLICK HERE to fill out our easy-to-use online contact form.