Don’t be caught without an accurate Mortgage Pre Approval. It’s a song I’ve sung for years. Online calculators are a great place to start, but blessed assurance comes when these numbers are validated by a professional. It’s time for a confidence boost!
Where To Find The Best Calculators
Using the tools available to you online will help. They will provide you with a general idea of your ability to qualify for a mortgage. Here are some of the better ones available to you:
1. CMHC Mortgage Affordability Calculator – This calculator runs you through the steps necessary to find a Mortgage Pre Approval for Ontario residents looking to purchase a home. The filter they use is through the eyes of a mortgage insurance company. This will only provide numbers that fit within the government’s mortgage restriction guidelines.
2. Financial Consumer Agency of Canada – Remarkably, this is actually a pretty accurate tool. It will give you a general idea of your ability to qualify for a mortgage or not. What it doesn’t provide is how individual bank and lender policies overlay and how lenders calculate your debt repayment minimums per month.
3. Purchase Plus Improvements Calculator – This calculator runs you through the Mortgage Pre Approval process and compares it to if you were to improve your new home immediately after purchase. A handy tool for those buying in the resale market.
Find out more about all the things you need to know about your Mortgage Pre Approval.
What A Pre Approval Calculator Misses
So you have completed your calculations on not one but multiple websites using the calculators provided. But you are receiving different answers or haven’t felt confident that you are able to act on this information. Well congratulations on trusting your gut on this one!
There are many additional filters that your Mortgage Pre Approval must go through in order to have what I call a ‘Fully Reviewed Mortgage Pre Approval’. I want to be your calculator validator. To validate that your numbers hold weight and that you will be able to take action on them.
Here are a couple of crucial filters that Mortgage Pre Approval Calculators will miss:
1. Mortgage Insurance Filter
Very quickly, mortgage insurance is not your home fire insurance policy. It is an insurance product that protects the lender and gives you access to better interest rates.
The calculators will not be able to tell whether mortgage insurance is a good option for you and if it is then the premium is added to the mortgage and this affects your overall numbers.
2. Lender Policy Filter
Every mortgage lender has their own set of lending criteria that varies slightly, and at times greatly, from the next lender. There are lenders who will provide a higher amount of your income towards the mortgage qualification, effectively increasing your maximum purchase price.
Quick example – Your bank’s mortgage calculator approves you for a mortgage of 250K based on your income of 60K per year. Another bank that we speak to is able to offer you a mortgage of 322K based on all the same numbers.
It’s tough to find accurate numbers and someone who can help relate what they mean to you. My clients have not only received actionable intelligence but a relatable human to hear your story as well. It is my goal that you feel validated and confident to make your best mortgage happen smoothly.
Fully Reviewed Ready To Be Approved
In this real estate market, you can’t afford any self doubt. A moment’s hesitation may lose you that perfect property.
Using the calculators available to you online and then getting your data validated is a powerful confidence boost. Once this is completed, you will be poised and ready to seize the day. Purchasing that perfect property. I stand ready to affirm you by contacting me today.