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Unlock Your Dream Home: 5 Proven Tips to Get Pre-Approved for a Higher Mortgage in Ontario

Are you looking to buy a home in Ontario, but the pre-approval amount is lower than you expected? Don't worry! With a little effort and the help of a Mortgage Broker like me. Using a mortgage broker, you can increase your pre-approval amount and achieve your dream of homeownership. Here are five tips to help you get pre-approved for a higher loan amount.

1 Lower your Debts

If you have outstanding debts, your debt-to-income ratio may be too high, making it difficult to qualify for the mortgage amount you want. Try paying off or down your high-interest consumer debts before applying for a mortgage. This can increase how much you can afford in a mortgage, giving you a higher pre-approval amount.

2 Increase your Credit Score

Lenders look closely at your credit score and repayment history when pre-approving you for a loan. If your credit score is fair or poor, you may not qualify for as much as you hoped. Check your credit and make changes to increase your score, like bringing any late payments current and lowering your credit card debt to decrease your credit utilization rate.

3. Change your Mortgage Terms

Sometimes, the mortgage terms may be limiting your pre-approval loan amount. For example, choosing a variable rate may lower your pre-approval amount due to higher rates. Work with your Mortgage Broker to explore which loan offers the best options for your situation.

4. Make a Larger Down Payment

Consider putting more money down on the home. A larger down payment means borrowing less from the lender, which may increase your pre-approval amount. If you don't have the money saved, consider a gifted down payment from family or government assistance programs like the First-Time Home Buyer Incentive.

5. Find a Co-Signer

If you have close friends or family with great credit, consider asking them to co-sign your mortgage. They can add to your capability to pay for the mortgage, but be careful to choose someone with a high income and low debt. Remember, when someone co-signs your loan, they are as financially responsible as you for the payments.

So, getting pre-approved for a higher amount is possible with a little work and time. Remember, before requesting a higher amount, ensure you can afford the higher payment. Work with a Mortgage Broker like me to find the best mortgage terms for your situation. With these tips, you'll be able to achieve your dream of homeownership in Ontario! Want to book a call? Click here.


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