When it comes to securing a mortgage, most borrowers focus solely on getting pre-approved or choosing the right lender. But getting the best possible mortgage deal requires paying close attention to key personal and financial factors that lenders scrutinize. If you’re planning to buy a home or refinance in Surrey or the Greater Vancouver area, here are five important elements you should monitor closely to get the best mortgage rates and terms.
1. Your Credit Score
Your credit score is one of the most influential factors in determining the mortgage rate you’ll receive. A higher score tells lenders you’re financially responsible, which often results in lower interest rates and better loan options.
- Aim for a score of 680 or higher for the best rates.
- Pay off outstanding debts, avoid late payments, and limit new credit inquiries.
- Check your credit report regularly to catch and dispute any errors.
As a Surrey mortgage broker, I often help clients review their credit reports before applying for a mortgage, ensuring they’re in the best possible shape.
2. Debt-to-Income Ratio (DTI)
Your debt-to-income ratio compares your total monthly debt payments to your gross monthly income. Lenders use this to evaluate whether you can manage your current debts along with a new mortgage.
- Try to keep your DTI under 39% for most conventional mortgage programs.
If you’re unsure how your finances measure up, I can help you calculate your DTI and determine your borrowing power.
3. Down Payment Amount
The size of your down payment directly impacts your mortgage terms. A larger down payment typically means:
- Lower monthly payments
- Lower loan-to-value ratio (LTV)
- Avoiding CMHC insurance on mortgages with 20% or more down
In Surrey’s competitive housing market, saving up a strong down payment not only improves your approval chances but also gives you more leverage when negotiating with lenders.
4. Stable Employment & Income
Lenders look for steady income and job stability when approving mortgages. If you’ve recently changed jobs or are self-employed, it’s important to provide detailed documentation.
- Provide T4s, Notice of Assessments, pay stubs, or financial statements.
- Avoid major career changes during the mortgage process.
- If you’re self-employed, having two years of consistent income is often required.
As a mortgage expert in Surrey, I work closely with both salaried and self-employed clients to package their income in a lender-friendly way.
5. Interest Rate Trends & Timing
Mortgage rates in Canada can fluctuate based on Bank of Canada announcements, inflation, and other market factors. Timing your mortgage application can make a significant difference.
- Monitor market news or consult with a broker regularly.
- Consider rate locks if rates are rising.
- Explore both fixed-rate and variable-rate options depending on your goals.
With access to multiple lenders, I help my clients in Surrey secure competitive mortgage rates, even during market volatility.
Get Expert Help for a Better Mortgage in Surrey
Getting a great mortgage isn’t just about filling out an application. It’s about understanding and optimizing the key factors lenders care about—and that’s where a trusted professional makes all the difference.
As an experienced mortgage broker in Surrey, I help homebuyers and homeowners just like you make smart, informed decisions. Whether you’re buying your first home, refinancing, or investing, I’ll guide you through every step of the process to get the mortgage that truly works for you.
Ready to take the next step? Contact Neeraj Kathuria today for a free consultation and personalized mortgage strategy.