Mortgage Myths Debunked
FALSE: You can get a mortgage with no money down
Sorry. Not any more. That ended in 2012. Now you must have a minimum downpayment of 5%.
FALSE: I need at least a 25% downpayment
In many cases, the higher the downpayment the better. It allows you to consider paying off your mortgage faster. It also means that your monthly mortgage bill will be lower and allow you to live more comfortably. But no, a 5% is a generally acceptable downpayment
FALSE: I work for myself. I’m self-employed. Banks avoid me like the plague. There’s no way I can get a mortgage
Although it can be more difficult to get a mortgage if you work for yourself, it depends on your income history. At Balance Mortgages, we’ve been there. We know what those of you who work on your own go through. You’re essential to the health of the economy and we know how to obtain mortgage financing for your situation.
FALSE: My credit’s bad. There’s no way I qualify for a mortgage
You will qualify, provided you improve your credit rating. We have great advice on the steps you need to repair your personal credit. Follow our advice, improve your credit rating, and mortgage approval will follow.
FALSE: My bank knows me. My folks have been with them for 50 years. I trust them. Why would I go elsewhere?
Your bank is still only concerned with their side of the ledger. They make sure they don’t lose. They don’t have reward programs and they’re apt to penalize you if you want to break the terms. And – they don’t have the access to multiple rate choices that your Balance Mortgages broker does.