5 Mortgage Myths Debunked

Mortgage myths

1) Myth -> Buying is Better than Renting

Why pay someone else’s mortgage when you can pay your own is one of the most common questions in the world of real estate. This is a valid question, but here at Mortgage Winners we don’t advise you to purchase a home that you simply cannot afford. We want to see you swim, not sink to the bottom. Many think that monthly rent payments are almost the same as monthly mortgage payments, which is simply not true. Monthly mortgage payments are about 40% more than rent payments. Not to mention the utilities and maintenance fees that are not covered in your mortgage payments.

Buying a home is a wonderful venture to embark on, and is very rewarding in the long run, if you can take on the full responsibility.

2) Myth -> Your Home Equity has a Return Rate

We are very sorry to burst your bubble, but the return rate for your home equity is ZERO. That’s right, zip, nil, nothing! Don’t pull out the tissues and fat free ice cream just yet though. Your equity can initiate wealth as long as you invest it in a different project.

Make sure you do loads of research first and invest in the right venture or you’ll end up with nothing.

3) Myth -> My Bank Will Give Me the Best Mortgage Rate Possible

“Should I stick with my bank, or hire a mortgage broker?” This is a question that most new homebuyers have. It’s an important question too, because who you choose can be the difference between getting a great deal or falling victim to an agreement that you may not be happy with.

Big banks are great to deal with if you are an excellent negotiator and really know your stuff. However, if you don’t have the greatest credit score or aren’t an expert on mortgages, you may need a little help, or a push in the right direction. Mortgage brokers have access to a world of connections that they can make available to you. They are mortgage experts and do all the negotiating for you. They can get lenders to approve you, even if your credit rate isn’t great. Best of all, they value you as their client and create a meaningful relationship so that they can better cater to your unique needs.

4) Myth -> I Can’t get a Mortgage if I Have Bad Credit

You are not alone! Countless Canadians have fallen into the uncharted territory of bad credit. You may think that having a low credit score means that you can’t get that dream home, but don’t worry, Mortgage Winners is here to help.

Banks will definitely not approve you if you haven’t been discharged from bankruptcy yet. So if you have recently filed for bankruptcy, you’ll have to do a little bit of waiting. For everyone else who just has some bad credit, you will probably need to hire a mortgage broker to find you the best rates possible with respect to your situation. They will find you an alternate lender if banks won’t approve you. Your interest rates may be slightly higher, but they will do their best to get it as low as possible.

Bad credit isn’t the end of the world. Everyone deserves a second chance, and mortgage experts can help you get that chance.

5) Myth -> Down Payments Can’t be a Loan

Most people dip into their savings or sell their assets to come up with their down payment. While that’s all fine and dandy, don’t be scared to come up with different ways to get money.

You can receive monetary gifts from family, as long as that family member gives you written verification of the transaction. A family inheritance is another source of income that has become more common in recent years. You can also dip into your Registered Retired Saving Plan (RRSP) and not accumulate interest, just as long as you repay the amount within fifteen years.

There’s a lot of misconception regarding mortgages, so it’s always good to get a little bit of expert advice if you think need it. That’s what we’re here for!

 If you have any questions or would like us to steer you in the right direction, feel free to contact us directly or through any of our social media platforms today!

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