The mortgage market has changed significantly in recent years. The number of mortgage products available is much smaller than the first, 90% LTV mortgages have almost disappeared, and lenders generally become much more cautious.
No longer do they allow a mortgage equal to 6 times your annual income, and for customers with bad credit rating, getting a mortgage has become very difficult. Despite the credit crunch, there are still some great mortgage deals available in the market. To know more about competitive mortgage rates in Windsor, Ontario, you can explore online sources.
We give you tips to help you get the best mortgage rate:
1. Make sure you have large deposits: while 90% LTV mortgage may still be available from some lenders, the best mortgage rates are usually available in less than 75% LTV product. Make sure you save as much as you can for your upfront deposit.
2. The large deposits go away for remortgages as well: because of decline in property prices, you may find that the LTV for your property is higher than when you applied for your first mortgage. An option could be to use the money in your savings account to deposit to get a better remortgage deal.
3. Check your credit record: buyers who are most affected by the credit crisis are the people with bad credit, also known as "sub-prime".
If you have bad credit, available for your level will be significantly higher as lenders want to protect themselves against the risk of lending money to someone with bad credit records. Make sure you check your credit record and take corrective measures to bring things back on the right track.