This just in from one of Home Mortgages Calgary’s lenders: Due to a new 5 year rate of 4.09%, Canadian 5 year bond yields are up 14bps to 2.71. It was only a month ago that 5 year bond yields were at 2.07.
With this new 5 year rate the spread dropped dramatically to 1.39%, indicating that another interest rate jump can be expected in the near future. In fact, it’s being predicted that we might see an increase of up to 25bps.
So, what does this mean for consumers? If you’ve been considering a mortgage or a pre-approval, get your mortgage application in soon!
When you visit your Calgary mortgage broker for the first time to obtain a mortgage pre-approval, there are certain documents and information you should bring with you so your mortgage application is as complete as possible:
General Information and Documents Required for a Mortgage Pre-Approval
– Pay stub and job letter: The mortgage amount that you will qualify on is based on how much income you make. Therefore, to get the best estimate of your gross annual income possible, you should bring your pay stub and job letter with you to your pre-approval meeting.
– Social insurance number: Lenders also take your credit score into consideration when qualifying you for a mortgage, since your credit score is an indication of how well you repay your obligations. In order to look at your credit history, your mortgage broker will need your social insurance number.
– Previous address information: In addition to your social insurance number, your mortgage broker also needs a three-year residence history. This is to make sure that your mortgage broker isn’t obtaining credit for the wrong person.
– Driver’s license: Mortgage fraud is becoming a problem, so your broker will probably request that you have your driver’s license as a primary form of identification.
– Know your down payment source and amount: Knowing your down payment amount and where it is coming from (savings, a gift, etc.) will allow your mortgage broker to more accurately pre-qualify you, since certain mortgage products require you to put a certain amount of money as a down payment. Also, some lenders restrict what source you can use for your down payment, especially if you’re self-employed.
– An idea of your price range: If you know approximately how much you’d like to pay for a home in Calgary, your mortgage broker will be able to tell you (unofficially) if that amount is feasible, or possibly if you qualify for a larger loan amount than you thought.
– Questions: The best educated mortgage consumer is someone who arrives at the first meeting with their mortgage broker armed with questions. Your mortgage broker is there to answer any questions you might have to ensure that the mortgage process is as easy and stress-free as possible, and asking any questions you might have helps with that.
Overall, the best way to go about things is to have a sound understanding of your own financial situation and have a good idea of what you’re looking for in a home (price, style, etc.) And always, always be sure to ask questions!