Today’s lending environment is more complex than it was a few years ago. Interest rates are higher than historic lows, and lenders are placing greater emphasis on affordability and borrower stability. For first time buyers, preparation is key.
Interest Rates and Affordability
Rates continue to influence buying power. Even small rate changes can affect monthly payments, so it is important to understand what you can comfortably afford rather than focusing only on the maximum approval amount.
Mortgage Qualification
Lenders assess credit score, income stability, debt levels, and employment history. Strong credit and manageable debt can improve both approval odds and interest rates.
Down Payment and Costs
Most first-time buyers need a minimum down payment, along with funds for closing costs. Planning ahead helps avoid last-minute financial stress.
The Mortgage Stress Test
Buyers must qualify at a higher rate than their actual mortgage rate. This reduces borrowing power but helps ensure long-term affordability.
Fixed vs Variable Rates
Fixed rates offer payment certainty, while variable rates can fluctuate over time. Choosing the right option depends on comfort with risk and financial flexibility.
Pre-Approval Matters
A mortgage pre-approval clarifies your budget and strengthens your offer when you find the right home.
Final Thoughts
Understanding today’s lending environment helps first time buyers move forward with confidence. With the right preparation and professional guidance, navigating the mortgage process becomes far more manageable.
Kerry Parsons, 5-Star Review, via Google
“FABER stands for fabulous! Scott and Cal went above and beyond expectations to help us. Unfailingly competent, available, reliable and trustworthy. We were promised that they would find us a home and, in a difficult market with challenging constraints, they delivered what they promised. From start to finish they were with us all the way. These guys set a high bar for the industry. We are grateful and happy to recommend their brand of service to you.”
Faber Real Estate Group
Royal LePage Coast Capital Realty
📞 250-244-3430
📧[email protected]
ℹ️ Scott Faber Personal Real Estate Corporation
ℹ️ Cal Faber Personal Real Estate Corporation
Vanessa Wood & Zachary Parsons
“Building Lasting Relationships, One Home at a Time.”
