Most home buyers today need a mortgage, and in todays market there is good reason to get an early start to organising your finances.

By using the services of an independent mortgage broker you not only are able to access all lenders and products to get the best fit for you, but in the majority of instances, the service is free!

Your consultation with a broker is without obligation and it will put you in a strong position to offer on a property when you find the right home.

By taking time to meet with a mortgage professional you will go through a pre-approval process which will result in a “conditional pre-approval” or, more accurately, a “120 day rate hold”.

'Subject to receiving and approving financing’ – key words to remember

It is important to realise that although you may now be pre-approved at a certain rate there will remain a number of Lender conditions to be met. In addition, the Lender still needs to approve of the property which you wish to purchase.

For these reasons never offer on a property without inserting a ‘subject to receiving and approving financing’ clause.

Be ready to make your move

Once you have met with your mortgage broker you will be on a forward footing and know:

• What price range of home you should be looking at;
• What your monthly mortgage payments will be;
• How much deposit you will need to come up with;
• What your various purchase costs are likely to be including Property Transfer Tax;

Start dealing with any ‘wrinkles’

Your discussion with your Mortgage Broker will also let you know:

How strong your credit score is and whether you need to take any remedial action;

Whether you need to arrange Gift letters (if a family member is helping with your deposit); NOA’s; letters of employment and so on.

Whatever you do…

Do not enter into any new credit card or financing arrangements until you have purchased your new home. A $100 monthly credit payment will reduce your purchasing power by $100,000!