Welcome to January! For many, this is the time to kickstart new resolutions to get back to fitness. While you may be doing a physical work out, why not apply the same strategy to your finances? When the time is right for you to buy a home, make sure you are financially fit and eligible for the best mortgage rate possible.

How to get the best mortgage rate

Whip it. Whip your credit rating into shape: pay your bills on time… every time. Keep your oldest credit card for its history, and make sure it is always paid on time. Try not to apply for new credit, especially at the checkout when they offer you a discount for applying.

Follow the 33% rule. Never run up a credit card or line of credit past 33% of its available limit. If you’ve got a $3000 limit, then $1000 is your absolute ceiling. Consider your budget and expenses if this is a challenge.

Cash is king. Gather up the maximum downpayment possible. The more money you put down on a home, the better. Can you give up your daily Starbucks to save for your home?

Be prepared. Put together a file folder with the following: pay stubs, or proof of self-employment income, list of debts and assets, and current bank statements. We can advise what you’ll need.

Start a dialogue. Talk to us about your plans. Find out if you can pre-qualify, and ask about how you might qualify for the best possible rate.

The process of qualifying for a mortgage begins long before you decide to buy a home! You know you want the best mortgage rate possible, so make a plan to improve your financial fitness. You’ll have no shortage of lenders willing to compete for your business.

Looking for some help with your downpayment? You can use a portion of your RRSP towards your downpayment with Home Buyers Plan for first time home buyers.