Why you should get your mortgage with an online lender

Buying a home is a big decision and oftentimes it can feel a little overwhelming, especially when you’re trying to figure out where to begin when it comes to securing financing. However, thanks to advances in technology, it's now easier than ever to apply for a mortgage and get the financing you need to purchase your dream home. 

And one of the easiest ways to simplify the process is by working with an online mortgage lender. 

Why you should opt for an online mortgage lender

It’s more convenient

One of the biggest benefits of working with an online mortgage lender is the convenience factor. With an online lender, you can apply for a mortgage from the comfort of your own home, at any time of day or night. This means that you don't have to take time off work or schedule appointments to meet with a lender in person. Instead, you can fill out an application online and submit it electronically, which can save you a lot of time and hassle.

You’ll have a higher chance of getting lower interest rates or pay less

Another advantage of working with an online mortgage lender is that they often have lower overhead costs than traditional brick-and-mortar lenders. This means, as direct-to-consumer lenders, they can offer lower interest rates and fees–or even no fees–to their customers. 

For example, if you choose to secure your mortgage with Pine, you’ll have your appraisal fees reimbursed. 

They can offer a faster and flexible process, compared to traditional banks

Online mortgage lenders often have streamlined processes that allow them to process loan applications more quickly than traditional lenders. This means that you can get approved for a mortgage and close on your home more quickly, which can be especially important in a competitive housing market. 

Working with an online mortgage lender can also give you more flexibility when it comes to the application process. For example, some online lenders may allow you to submit and sign documents electronically, which can save you time and hassle. 

You can check on your application status anytime, anywhere

One of the great things about working with an online mortgage lender is that you can access your account and check your loan status 24/7. This means that you can track your loan progress, make payments, any time, from anywhere.

Tips for getting a mortgage in Canada

Get your finances in order

The first thing you need to do is get your finances in order. Lenders in Canada look at a variety of factors when deciding whether or not to approve a mortgage, including your credit score, income, and debt service ratios. Make sure your credit score is as high as possible by paying your bills on time and keeping your credit card balances low. It's also important to have a stable source of income and keep your debt levels low.

Save for a down payment

One of the biggest hurdles to getting approved for a mortgage is saving for a down payment. In Canada, you need to have a down payment of at least 5% of the home's purchase price (but 20% if you’re buying a home $1 million or more). 

If you can save more than 5%, you'll be in a better position to get approved for a mortgage with a lower interest rate–plus if you’re able to put down at least 20%, you can opt out of having to get mortgage insurance. 

It's also a good idea to save money for closing costs and other expenses associated with buying a home.

However, if you’re unable to get a mortgage on your own due to potential financial constraints: there is strength in numbers. It may be an opportune moment to consider getting a guarantor or co-borrower to help you get into the real estate market–and building equity–sooner than later. 

Shop around for the best rate

Once you're ready to apply for a mortgage, it's important to shop around for the best rate. Different lenders in Canada offer different interest rates, so it's worth doing some research to find the best deal. You can use online comparison tools to compare rates and terms from multiple lenders. Keep in mind that a lower interest rate can save you thousands of dollars over the life of your mortgage.

Consider getting a mortgage pre-approval

Getting pre-approved for a mortgage can also help you get approved when it's time to buy a home. Pre-approval means that a lender has reviewed your finances and determined how much they're willing to lend you. This can give you a better idea of how much of a home you can afford and can also make the homebuying process smoother and less stressful.

Should you get your mortgage with an online lender? 

If you're in the market for a mortgage in Canada, working with an online mortgage lender can offer a number of benefits. From ease of convenience to lower fees, online mortgage lenders are making it easier than ever to secure financing for your dream home. Whether you're a first-time homebuyer or a seasoned real estate investor, the flexibility and convenience of working with an online lender can help you save time and money while getting the financing you need.

Of course, it's important to do your research and compare different lenders to find the one that best fits your needs. Look for lenders with a solid reputation and positive customer reviews, and be sure to compare rates and fees from multiple lenders to find the best deal.

Ultimately, whether you choose to work with an online lender or a traditional brick-and-mortar lender, the key is to make an informed decision and choose a lender that you trust and feel comfortable working with. By doing your due diligence and weighing your options, you can find the right lender and secure the financing you need to purchase your dream home in Canada.

And, if you’re ready to take the plunge, apply online with Pine and we’ll connect you with one of our mortgage agents to help you get the lowest interest rate today–no negotiating needed.