In today’s market, renters and even homeowners in Canada are seized by the desire to save enough funds for down payments. The reason is simple. Canadian mortgage rates are going down and real estate prices are in full swing.

For instance, the Canadian brokering company in Montreal, Multi-Prets Hypotheques is currently offering their customers a five-year Canadian mortgage rate of 5.1 per cent. This is low compared to other banks posted Canadian mortgage rate of 6.5 per cent. This allows consumers to save thousands of dollars in Canadian mortgage rates and interest rates alone over the life of their loan.

Buying home has become very easy nowadays with a variety of residential mortgage options available in the market. Many people prefer to buy a house than to go for a rented one. But before going for any deal on residential mortgage, you have to have all the updated knowledge.

Five Dos for residential mortgage: -Try and make all your loan and debt payments on time. Every 30-, 60-, or 90-day delinquency on a loan or credit is going to reduce the credit score the lender ends up considering as part of the loan file. The score in turn will determine the residential mortgage loan you get.

-If missing something becomes essential, miss the credit card payment first, followed by the installment loan payment and finally the existing residential mortgage loan. Credit scoring systems look at the performance of similar loan first before deciding the type of score to assign.

-Try to pay off all the debts and put down a smaller amount at the time of closing. This leaves the borrower with larger mortgages but also allow them to replace non tax-deductible, high-interest rate debt with lower-rate residential mortgage debt that features deductible interest.

-If multiple financial obligations are going to pop up in the near future, get the residential mortgage first. Certain credit enquiries such as new applications for credit cards can hurt a borrower’s credit score, especially if they are filed in the months prior to the home loan review process.

-Try to increase the size of the down payment on your residential mortgage through solid savings. Putting the savings into something volatile like individual stock is highly avoidable. This is also advisable to evaluate money market or other accounts that offer reasonable rates of return, automatic payroll deductions or other financial incentives to save.

Five don’ts for residential mortgage: -If you have just got into a residential mortgage deal, then it is highly recommended to avoid any big purchases over the next couple of months. This might make less money available for the down payment that might also end up to another loan.

-Don’t go for a very expensive house if your budget doesn’t support. If you start with a relatively small monthly housing payment and move to a huge one, it will end up covering too much loan with too small money.

-Don’t try to get pre-qualified for your residential mortgages rather get pre-approved. Before getting pre-approved, you must also allow the lenders to pull credit reports, check debt-to-income ratios and also to perform other underwriting steps. This might put you closer to obtain a loan.

-Don’t forget your money personality while getting a residential mortgage. Save and accumulate equity faster by going with the shorter term and higher payment if possible.

-Don’t forget the burden a homeownership brings. The cost of defaulting on a residential mortgage loan is might be much greater than the penalty of missing a rent payment. If you have too many black marks on the financial history, the interest credit will rise higher than you can ever handle.