Obtaining home ownership is one of the most important phases of your life. The process is difficult, stressful and demands careful analysis. Even a slight misjudgment can prove to be too much for you in the long run. Here are a few tips which can somewhat ease up things for you.

• Conduct a thorough search for the best deal

A mortgage loan is offered by many banks and agencies. However, there are numerous differences in the contract which can affect a different aspect. So finding a deal that will suit your needs cannot be done without a search.

Visit multiple banks and mortgage agencies and carefully study the offers they are making. Do not only consider the mortgage rate. You should assess other factors as well such as the term period, payment schedule and so on.

• Ask your current bank for details

The banks in Canada are quite famous for offering great mortgage rates to existing customers. Contact the mortgage representative at your bank and find details about their mortgage products. Repeatedly tell them that you are expecting a good deal from them since you are already a part of their clientele.

If you have studied mortgage deals of other organizations, you would also have an average idea of the market rate. Use this as a basis and try to negotiate the offer with your current bank.

• Save enough funds so that you can make a down payment of 20%

A down payment of 20% is not mandatory, but is highly recommended because then you will not have to buy CMHC insurance. If you pay less than this amount, you will be obliged to purchase insurance as well. Moreover, a high down payment lowers the mortgage rates and the monthly payments.  This little step can help you save thousands of dollars.

• Avail the Home Buyers Plan

If you can qualify as a first time home buyer, then do avail the Home Buyers Plan or HBP. This will allow you to withdraw money for your down payment from your RRSPs. No taxes are incurred in this process and you do not have to pay an interest amount. The maximum withdrawal limit is $25,000.

• Get a Pre-Qualification or Pre-Approval

Before searching for a house, talk with some of the lenders. You’ll come to know the maximum value which you can afford and you will also be able to apply for a pre-qualification or pre-approval. This gives you a rate hold which is valid for 1 to 4 months depending on the lender.