Get Protection From A Pre-Approval
Josh Perez • January 8, 2025
There is no doubt about it, buying a home can be an emotional experience. Especially in a competitive housing market where you feel compelled to bid over the asking price to have a shot at getting into the market.
Buying a home is a game of balancing needs and wants while being honest with yourself about those very needs and wants. It’s hard to get it right, figuring out what’s negotiable and what isn’t, what you can live with and what you can’t live without.
Finding that balance between what makes sense in your head and what feels right in your heart is challenging. And the further you are in the process, the more desperate you may feel.
One of the biggest mistakes you can make when shopping for a property is to fall in love with something you can’t afford. Doing this almost certainly guarantees that nothing else will compare, and you will inevitably find yourself “settling” for something that is actually quite nice. Something that would have been perfect had you not already fallen in love with something out of your price range.
So before you ever look at a property, you should know exactly what you can qualify for so that you can shop within a set price range and you won’t be disappointed.
Protect yourself with a mortgage pre-approval. A pre-approval does a few things
- It will outline your buying power. You will be able to shop with confidence, knowing exactly how much you can spend.
- It will uncover any issues that might arise in qualifying for a mortgage, for example, mistakes on your credit bureau.
- It will outline the necessary supporting documentation required to get a mortgage so you can be prepared.
- It will secure a rate for 30 to 120 days, depending on your mortgage product.
- It will save your heart from the pain of falling in love with something you can’t afford.
Obviously, there is nothing wrong with looking at all types of property and getting a good handle on the market; however, a pre-approval will protect you from believing you can qualify for more than you can actually afford.
Get a pre-approval before you start shopping; your heart will thank you.
If you’d like to walk through your financial situation and get pre-approved for a mortgage, let’s talk. It would be a pleasure to work with you!
As a self-employed business owner, getting approved for a mortgage can feel like an uphill battle. If you’ve been heading straight to the bank for help, it’s time to rethink that approach. There are two main reasons why this could be a bad idea: the people you’re dealing with and the products they offer. Let’s break down why these two factors can cause problems for self-employed individuals seeking a mortgage. The People: Lack of Expertise There’s a growing trend in banks today, one that’s getting worse with every passing year: more and more bank employees are lacking the necessary experience in financial planning, particularly when it comes to understanding business owners. This leads to a crucial misunderstanding of how businesses operate, which can directly impact the approval process for a mortgage. When you go to the bank, the person you’re dealing with may not ask the right questions or dive deep enough into your business’s financial health. They might focus too heavily on what you personally take out of your business, instead of getting a full picture of how your business operates and its potential for growth. The lack of this understanding means your mortgage application could be misjudged, leaving you without the approval or terms you need. The Products: Not Designed for Business Owners The second issue is the products that most banks offer to business owners. Traditional bank products often base their qualification process on the personal income a business owner takes out of their business. For many entrepreneurs, this creates a problem because it’s often in their best interest to leave more money within the business rather than withdrawing it personally. This is especially true when trying to grow a business sustainably. By focusing solely on personal income, banks miss a huge part of the picture. A business owner’s true financial strength is not just in the salary they pay themselves, but in the overall health and future potential of their business. When banks ignore this, they miss opportunities to offer better mortgage products that take into account the business’s long-term financial viability. The Alternative: Working with a Mortgage Broker As a mortgage broker, my role is to work with a wide variety of lenders who take a common-sense approach to self-employed business owners. Instead of just looking at personal income, we dive deep into the overall financial health of the business itself. This involves looking at how the business operates, understanding its financial structure, and making sure that your business’s potential for growth is properly recognized. One of the biggest benefits of being a business owner is the ability to retain earnings within the company. By doing this, you can avoid the highest personal tax rates and use the extra funds to grow your business sustainably. But when you go directly to a bank, they might penalize you for not taking out large amounts personally. A mortgage broker, however, can work with you to ensure that your business’s growth strategy is taken into account, helping you secure a mortgage that fits your long-term goals. In Conclusion If you’re self-employed and you’re planning to get a mortgage, it’s time to stop going directly to the bank. Instead, work with a mortgage broker who understands the unique needs of business owners. A mortgage broker will help you navigate the complexities of self-employment and find mortgage products that are more in line with your business’s health and future potential. Don’t let banks’ limited understanding of your financial situation stand in the way of your homeownership goals. Take the smart route and get the right support to secure a mortgage that works for you and your business.
Bank of Canada holds policy rate at 2¾%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario April 16, 2025 The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%. The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations. Pervasive uncertainty makes it unusually challenging to project GDP growth and inflation in Canada and globally. Instead, the April Monetary Policy Report (MPR) presents two scenarios that explore different paths for US trade policy. In the first scenario, uncertainty is high but tariffs are limited in scope. Canadian growth weakens temporarily and inflation remains around the 2% target. In the second scenario, a protracted trade war causes Canada’s economy to fall into recession this year and inflation rises temporarily above 3% next year. Many other trade policy scenarios are possible. There is also an unusual degree of uncertainty about the economic outcomes within any scenario, since the magnitude and speed of the shift in US trade policy are unprecedented. Global economic growth was solid in late 2024 and inflation has been easing towards central bank targets. However, tariffs and uncertainty have weakened the outlook. In the United States, the economy is showing signs of slowing amid rising policy uncertainty and rapidly deteriorating sentiment, while inflation expectations have risen. In the euro area, growth has been modest in early 2025, with continued weakness in the manufacturing sector. China’s economy was strong at the end of 2024 but more recent data shows it slowing modestly. Financial markets have been roiled by serial tariff announcements, postponements and continued threats of escalation. This extreme market volatility is adding to uncertainty. Oil prices have declined substantially since January, mainly reflecting weaker prospects for global growth. Canada’s exchange rate has recently appreciated as a result of broad US dollar weakness. In Canada, the economy is slowing as tariff announcements and uncertainty pull down consumer and business confidence. Consumption, residential investment and business spending all look to have weakened in the first quarter. Trade tensions are also disrupting recovery in the labour market. Employment declined in March and businesses are reporting plans to slow their hiring. Wage growth continues to show signs of moderation. Inflation was 2.3% in March, lower than in February but still higher than 1.8% at the time of the January MPR. The higher inflation in the last couple of months reflects some rebound in goods price inflation and the end of the temporary suspension of the GST/HST. Starting in April, CPI inflation will be pulled down for one year by the removal of the consumer carbon tax. Lower global oil prices will also dampen inflation in the near term. However, we expect tariffs and supply chain disruptions to push up some prices. How much upward pressure this puts on inflation will depend on the evolution of tariffs and how quickly businesses pass on higher costs to consumers. Short-term inflation expectations have moved up, as businesses and consumers anticipate higher costs from trade conflict and supply disruptions. Longer term inflation expectations are little changed. Governing Council will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. Our focus will be on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. This means we will support economic growth while ensuring that inflation remains well controlled. Governing Council will proceed carefully, with particular attention to the risks and uncertainties facing the Canadian economy. These include: the extent to which higher tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer prices; and how inflation expectations evolve. Monetary policy cannot resolve trade uncertainty or offset the impacts of a trade war. What it can and must do is maintain price stability for Canadians. Information note The next scheduled date for announcing the overnight rate target is June 4, 2025. The Bank will publish its next MPR on July 30, 2025. Read the April 16th, 2025 Monetary Report
