Questions to Ask a Lender

In your search for a mortgage, you should meet with several lenders to interview them and discuss the terms and process. During this time, you need to properly gauge the terms they are offering and the advice they are giving to guide you through the process. Not all lenders are created equal and the key is to come ready with the right questions to ask.

Here are three questions every applicant should ask a lender during their first conversation.

How to Decide Between Fixed or Variable Interest Rates?

One of the biggest decisions you will make, outside of choosing a home and making an offer, is what type of interest rate to choose. Your lender must have the market knowledge and a sense of how the banks will act to guide you to the best decision for your situation. There’s no one size fits all.

A fixed interest rate means the rate will stay the same throughout the duration of your mortgage. This is a good option if the rate is low and there are signs that it will spike at some point. A variable rate is volatile and can increase or decrease based on what The Bank of Canada does. Typically, you are signing up for a higher rate with the hope that it will drop at some point, meaning you can put more towards the principle.

Can I Pass the Mortgage Stress Test? 

The stress test has been a popular point of discussion since late 2017.  Every lender you meet with should outline the parameters of the stress test. They should also honestly evaluate whether your application could pass with flying colours. A lender should acknowledge when an applicant could have trouble passing the stress test and then offering advice on how to better their application.                                                                        

What’s the Pre-Approval Process?

Finally, inquire about the steps it takes to be pre-approved for a mortgage. Your first conversation with a lender should give you the tools to prepare the best application, as these things are rarely straightforward. Get a list of everything you will need so that you can create a comprehensive checklist. Be sure to ask if there are any tips that can help you get approved.

Contact us today to put these tips into practice and to get more information about mortgage approvals.

x

Apply Online in 60 Seconds & Get Approved Now!

Please note * are required fields

Loan Details

*Purpose of Loan
* Do you currently own a home?    Yes   No

Personal Details

*Title
*First Name
*Last Name
*Date of Birth
*Email Address
*Current Address
*City
*Select Province
*Postal Code
*Residential Status
*Home Phone
Cell Phone

Agent/Comments

Preferred Agent
*Please tell us where you heard about us?

Sign Up for Free Promotions*

Would you like to sign up for FREE newsletters, offers and special promotions from CanadaLend? You may later unsubscribe.

 

Terms & Conditions

I Agree

We respect your privacy

Please note, if necessary, we may require further information from you to process your application. By clicking "Apply Now" you are consenting to receiving future such e-mails from us with regards to your application.

* Your consent is sought by CanadaLend.com 675 Cochrane Dr, #104, West Tower, Markham, ON L3R 0B8
info@canadalend.com