Direct Mortgages
in Canada
Learn about the advantages of mortgage direct, a new and innovative way to secure financing for your dream home.
The Advantages of Direct Mortgages
Getting a lower interest rate isn’t the only reason to refinance a mortgage. Mortgage refinancing can also be used to access equity in your home, and to consolidate your debts.
Lower Fees &
Interest Rates
By eliminating the middleman, direct mortgages often offer lower fees and interest rates, which can save you thousands of dollars over the life of your mortgage.
Greater
Flexibility
Direct mortgages also offer greater flexibility, with direct access to the lender, allowing you to choose the mortgage term and payment options that best suit your needs.
Faster
Processing Time
The elimination of the middleman also means that the loan processing time is often faster, allowing you to secure your financing and purchase your dream home more quickly.
How Direct Mortgages Work
A direct mortgage is a type of home loan that is provided directly by the lender, without the use of a mortgage broker. This means that the lender is responsible for all aspects of the loan process, from origination to underwriting and servicing. To obtain a direct mortgage, you simply need to apply directly to the lender and provide the necessary documentation and information.
What You Need to Know Before Applying
Before applying for a direct mortgage in Canada, it is important to understand the eligibility requirements and to do your research. Some factors to consider include:
Credit Score: To be eligible for a direct mortgage, you typically need to have a good credit score. You can track your score with Equifax or Transunion in Canada.
Income: You will also need to have a stable and sufficient income to support the mortgage payments.
Down Payment: A higher down payment than traditional mortgages may be required.
Debt-to-Income Ratio: Your overall debt-to-income (DTI) ratio is the amount of debt you have relative to income – including your future mortgage payments.