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Mortgages Guelph 2019

Compare the best lenders in this region:
ProviderRating
4 / 5
Pylo Finance 4 / 5
Fresh Start Finance 4 / 5
Marble Finance 5 / 5
Money Mart 4 / 5
Payday King 2 / 5
Private Loan Shop 5 / 5
Progressa 3 / 5
My Canada Payday 5 / 5
Mr. Payday 4 / 5
Money Provider 5 / 5
Loan Express 3 / 5
Meridian Credit Union 5 / 5
Loan Away 4 / 5
Loan & Go 5 / 5
Lendful 3 / 5
LendDirect 5 / 5
Health Smart Financial Services -
GoDay 4 / 5
iCash 5 / 5
Focus Financial Inc. 2 / 5
FlexFi 5 / 5
Eastern Loans 5 / 5
DMO Credit 5 / 5
Capital Cash 2 / 5
Cash 4 You 2 / 5
Credit 700 2 / 5
Credit Club 5 / 5
Credit2Go 3 / 5
Ledn 5 / 5
Amber Financial 5 / 5
Affirm Financial 5 / 5
310 Loan 2 / 5
Newstart Canada 4 / 5
Ferratum 5 / 5
SkyCap Financial 4 / 5
Fast Access Finance 5 / 5
Fairstone 2 / 5
Lending Mate 4 / 5
Consumer Capital Canada 4 / 5
Lamina 3 / 5
Loans SOS -
514 Loans 5 / 5
CashCo 5 / 5
UrLoan 5 / 5
Loan Me Now 4 / 5
Captain Cash 4 / 5
BC Loans 4 / 5
Urgent Loans 4 / 5
Easy Financial 3 / 5
Mogo Finance 4 / 5
Cash Money 5 / 5
Borrowell 5 / 5
Magical Credit 5 / 5
ProviderRating
SharpShooter Funding 5 / 5
First West Credit Union 5 / 5
PACE Credit Union 5 / 5
Meridian Credit Union 5 / 5
DUCA Credit Union 5 / 5
Laurentian Bank of Canada 5 / 5
HSBC Bank Canada 5 / 5
National Bank 5 / 5
Desjardins 5 / 5
Canadian Imperial Bank of Commerce (CIBC) 5 / 5
Scotiabank 3 / 5
Bank of Montreal (BMO) 3 / 5
Royal Bank of Canada (RBC) 5 / 5
CWB National Leasing 5 / 5
Money Line Capital 5 / 5
Money in Motion 5 / 5
Lease Link 5 / 5
FundThrough 5 / 5
Econolease Financial Services Inc. 5 / 5
Easylease Corp 5 / 5
Capify 5 / 5
Canadian Equipment Finance 5 / 5
Capital Key 5 / 5
Cashbloom 5 / 5
BFS Captial 5 / 5
BDC 2 / 5
Baron Finance 5 / 5
B2B Bank 5 / 5
AOne Financial Solutions 5 / 5
Borrowell 5 / 5
iCapital 5 / 5
Lendified -
IOU Financial 5 / 5
Company Capital 5 / 5
OnDeck 5 / 5
Evolocity 5 / 5
Lending Loop 5 / 5
Thinking Capital 5 / 5
ProviderRating
Canada Car Loans -
Car Loans Canada -
Car Creditex -
Auto Capital Canada 5 / 5
Carfinco 5 / 5
Canada Drives 5 / 5
Prefera Finance 5 / 5
Prudent Financial Services 5 / 5
Dixie Auto Loans 5 / 5
Approve Canada 5 / 5
2nd Chance Automotive 5 / 5
Newstart Canada 4 / 5
SkyCap Financial 4 / 5
Splash Auto Finance by Rifco 5 / 5
Carloans411 5 / 5
AutoArriba 5 / 5
ProviderRating
Newstart Canada 4 / 5
Fast Access Finance 5 / 5
BHM Financial 5 / 5
ProviderRating
CMLS Financials -
CHIP Reverse Mortgage -
CanWise -
Centum 5 / 5
Broker Financial Group Inc. 5 / 5
Bridgewater Bank 5 / 5
Alpine Credits 5 / 5

Living in Canada has many great benefits, but it can also be very expensive in some places. In particular, home prices are quite high in most cities around the country, which can make becoming a homeowner difficult for many consumers. While everyone knows Toronto and Vancouver have expensive homes, even home prices in Guelph and many other smaller cities have been on the rise in recent years. 

Thankfully, mortgages in Guelph help ease the burden of buying a house and allow residents to fulfill their homeownership dreamers.

How to Compare Mortgage Offers

Whether you are looking at mortgages in Guelph or another city in Ontario, there is a good chance there are several mortgage providers who will be happy to work with you. However, not all mortgage offers are created equally. Each lender and agreement will have its own unique terms, rules, and conditions. So how do you compare one mortgage offer to another to figure out which works best for you?

Of course, the big thing to consider when looking at mortgage offers is the interest rate. The interest rate you pay will have a huge impact on how much the mortgage will cost you over the entire amortization period. Even a single percentage point difference in your interest rate can represent thousands of dollars by the end of your mortgage. So be sure to shop around and find a good interest rate. 

However, in addition to a good interest rate, there are several other things to compare and consider. These include:

  • The length of the term
  • Potential pre-payment options or penalties
  • Amortization period
  • Fixed or variable rate
  • Closed or open mortgages

All of these are important details all consumers should consider when choosing the best mortgage for their needs.  Different people will have different wants and needs, some will want a longer mortgage with smaller payments and a variable rate, while others will want a shorter amortization period with a fixed interest rate. There is no such thing as the “right” mortgage offer to consider, it all comes down to your wants and needs.

Cost of Buying a House in CanadaInterested in the cost of buying a house in the rest of Canada? Click here.  

How to Save For a Down Payment 

No matter where you get your mortgage in Guelph from or which provider you work with, you’ll be required to have a down payment. The amount you will put toward a down payment will depend on what you can afford. Generally, most down payments are between 5% and 20%. The larger your down payment, the cheaper your mortgage will end up being.

Not only will having a large down payment mean you need to borrow less, but it could also save you from having to pay mortgage default insurance. If you put 20% down or more, you will not be responsible for paying mortgage insurance, which can often add up to thousands of dollars. While it’s not always viable to be able to afford 20% down, it is a goal you should strive for if you’re able, as it will save you more in the long run.

Now that you know how much to save for a down payment, how can you go about saving for one? There are many different things you can do to help save for a down payment, including:

  • Pay off any high-interest debts as soon as possible
  • Reduce your monthly bills or payments if at all possible
  • Work extra hours or find other ways to make money on the side
  • Set up automatic transfers into a savings account if you have trouble saving
  • Borrowing from your RRSPs

By doing all of these things, you will be well on your way to building up a significant down payment for when you want to buy a home. 

Everything you need to know about getting a down payment in Canada, click here.

Credit Score Required for a Mortgage in Guelph

Any time you borrow money, for a home, car, or simply a personal loan, your credit score will come into account. Your credit score is a snapshot of your overall credit situation. Credit scores range from 300 to 900. The higher your credit score, the more likely you’ll be able to borrow money. Not only that, but a higher score will often get you access to better deals, better terms, and a better interest rate. 

As you could image, your credit score could play a large role in getting a mortgage in Guelph. A high score will prove to a potential mortgage provider that you are able to pay off your debts successfully. But just what sort of credit score is required in Guelph and the rest of Canada to get a mortgage?

Generally, a credit score of around 640 is required to get a mortgage in Canada, but depending on your lender, anywhere from around 620-680 may suffice. Of course, the rest of your finances and financial situation will have a bearing on whether you get approved or not. Things your income and debt levels might have an impact, too. 

Canadian Credit ScoreCheck out this infographic for more information about credit scores. 
If your credit score is low and you’d like to build it up before applying for a mortgage in hopes of getting approved, that is entirely possible. There are many different things you can do to improve your credit score, such as:

  • Making all of your payments in full and on time
  • Using credit responsibly
  • Keep your balances low
  • Don’t constantly apply for new credit
  • Keep old credit accounts open

While these won’t lead your credit score to skyrocket overnight, they will certainly have an effect over time. It can be a lengthy process to improve your credit score but is certainly worth it. 

Avoid these common mortgage application mistakes. 

Mortgage Options for Bad Credit Consumers

While all might seem lost if you have bad credit and are looking to get a mortgage, that’s not the case. There are options for those with bad credit to still be able to get mortgages in Guelph. One of the best and most common options is to use a cosigner. Having a cosigner basically means that they agree to pay the loan if you are delinquent and miss your payments. 

Getting a mortgage with a cosigner can provide you access to better rates and terms, but there is also a lot of risk for the cosigner, so normally only close friends or family members will be willing to co-sign a loan for you. However, it is important to be careful when getting a cosigner. If you take advantage of their kindness and helpfulness, it could potentially ruin a relationship. So if you have a cosigner, work as hard as you can and do all you can to always ensure you pay your bills. 

Also, there is the option of using a bridge loan. A bridge loan is a short term solution that aims to help you improve your credit and get access to better loans in the future. These are often provided by private lenders and are great for those who were unable to get loans or mortgages from a standard bank. 

To learn more about bridge loans, take a look at this infographic. 

Hidden Costs of Buying a Home in Guelph

When purchasing a home, there are many large costs we are aware of. This includes your mortgage, your down payment, and the interest rate. However, these are far from the only costs that you are responsible for. Many of these are costs we don’t think about, even though we should.

These types of costs include:

  • Various taxes including property, school, land transfer and others
  • Home inspection costs
  • Moving costs
  • Cost of potential renovations
  • Maintenance
  • Mortgage insurance (if you need to pay it)
  • Hook-up fees
  • Potentially new furniture and other household items 

Without thinking about these aforementioned costs and others like them, you might not have a good or accurate idea of how much your home will cost. If you don’t account for these costs, you could find yourself in deep financial trouble for a long time. While the mortgage itself is obviously the biggest cost, there are many other “hidden” costs that should be in your mind when deciding how much you can afford. 

If you are in need of a mortgage in Guelph or want to learn more information about lenders in your area, be sure to reach out to Loans Canada. We are confident that we can help you out and answer any question or concern that you might have. 

FAQs

What happens if I miss a mortgage payment?

  • Missing a mortgage payment will affect your finances in two ways. A missed payment will be reported to the credit bureaus and negatively impact your credit score. And your lender could potentially charge you a late fee. If you know you won’t be able to make a loan payment on time, make sure you speak with your lender.

What is home equity?

  • Home equity is the percentage of your home that you actually own. As you pay down your mortgage (or if the market value of your home increased), your home equity or the percentage of your home that you own goes up. Home equity is valuable because you can use it as collateral to borrow against.

What credit score do I need to qualify for a mortgage?

  • Generally speaking, in Canada most banks and traditional lenders will require a minimum credit score that falls somewhere between 620 and 680.

How do I find out how much equity is in my home?

  • In order to gain access to your home equity via a home equity loan, HELOC, second mortgage, etc. a professional appraisal must be performed, which will determine the value of your house. But, if you’re interested in having a general idea of the amount of home equity you’ve built up, subtract your remaining mortgage balance from the price you paid for your house.

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After dipping his toes into freelance writing while still enrolled in school, Kale decided to pursue freelance writing as his career after earning his Bachelors degree from the University of Regina. In his six-year career as a professional writer, Kale has focused on writing about finance, technology, cryptocurrency, entertainment, and sports. Kale work has been published on Yahoo, RentHop, the Regina Leader-Post, and ReboundFinance.com. Kale loves to create a wide variety of personal financ...

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