Buying a Home Despite Economic Doom and Gloom

Posted: September 18, 2009    Categories: calgary mortgage broker

A recession hit us.  I know, I know, brace yourself.  That’s a bit of surprising news, isn’t it?

Sarcasm aside, there’s no denying that the global economic crisis (AKA, the recession) really put a lot of people in positions they weren’t used to being in.  For many people born post 1980, a “recession” was an entirely new, completely foreign concept.  For others, it was a case of lather, rinse, and repeat.

However, how you feel about the recession doesn’t change the fact that it has made life a little more difficult for those looking to obtain a loan or mortgage.  Before the recession, banks and lenders alike seemed to hand out zero-down mortgages like candy.  Now?  Well, be prepared to save some cash.

Obtaining a Mortgage Post Recession

People can still get mortgages, and unless you have absolutely no income, no credit, and no cash, there’s a good chance that you can get one too.  Many banks have dramatically tightened their purse-strings, which is why Calgarians looking for a mortgage may find that using a Calgary mortgage broker is the way to go, but that doesn’t mean that they’re impossible to obtain.

Your credit is more important than before, but it doesn’t have to be squeaky clean for a lender to provide you a mortgage (especially if you’re using an experienced calgary mortgage broker).  As always, make sure that you have your ducks in a row:

• Clean up your credit - Pay off as much of your debt as possible a few months before approaching a lender.  This will make you more applicable for credit as your debt:income ratio will have been reduced.

• Build a down-payment – Save money to be used as a down-payment.  The more you have, the better your chances of getting a mortgage (and the more you may be able to get approved for).

• Show consistency and stability in your lifestyle - If a lender runs your credit bureau and sees that you’ve been trying to get a ton of credit in a very short period of time it makes you look like a serious risk.  Avoid seeking any more credit than you absolutely need.

Are the Days of Zero-Down Long Gone?

For some people, yes, the days of zero-down mortgages are over.  However, these people are also the people that likely should not have necessarily obtained a mortgage in the first place (due to financial/economic reasons, stability reasons, or otherwise).

As always, your mortgage broker will let you know about what your best options are and how they’ll work for you.

About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage broker please contact us today!

The Purcell Mortgage Team are experts on Calgary mortgages!