There are dozens of loan types and hundreds of loan programs available through thousands of mortgage brokers, bankers, lenders, finance companies, credit unions, even stock brokerage firms. Contrary to popular belief, finding a mortgage doesn't begin with an application.

Education is a better first choice. Web sites, topical newspaper articles, mortgage books, consumer seminars and workshops, financial planners, real estate agents, mortgage brokers and lenders are all available to assist you along the way.

First and foremost, determine how your mortgage payment will fit your current budget and, to some extent, your future obligations 15 to 30 years down the road. If you discover too late that you can't afford your mortgage, you'll not only face the possibility of losing the roof over your head, but you could also damage your ability to purchase a home later.


Examine Your Finances
If you can afford to buy a home, determine how much mortgage you can afford. Lenders are apt to put your loan application in the best light and qualify you for as much as they are willing to lend, which can be more than you can afford.

It's up to you to take stock of your income and expenses, both current and projected to determine what you can comfortably manage each month. Along with your mortgage payment, don't forget related insurance, taxes, homeowner association dues and any other costs rolled into the mortgage payment.


Using Your RRSP To Buy Your First Home
To qualify, you or your spouse must not have owned a home in the past five years. An individual may only utilize this program once in his or her lifetime. The maximum withdrawal is $20,000 per individual. The amount you are withdrawing from the RRSP must be in the RRSP for at least 90 days before withdrawal. You must complete your home purchase by October 1 of the year following the withdrawal. You should begin to pay back the money borrowed from your RRSP in the second year after you withdraw the funds. You have 15 years to repay the loan and if you do not repay 1/15 of the loan each year, that amount will be taxed accordingly. You will need a T1036 form, available from Revenue Canada or your lender, and a copy of your purchase agreement to file with your next tax return.


Check Your Credit Rating
Even if you're sure you have excellent credit, it's wise to double-check at the outset. Straightening out any errors or disputed items now will avoid troublesome hold ups down the road when you're waiting for mortgage approval.

You may see disputed items, in addition to errors caused by a faulty social insurance number, a name similar to yours, or a court ordered judgment you paid off that hasn't been cleared from the public records. If such items appear, write a letter to the appropriate credit bureau. Credit bureaus are required to help you straighten things out in a reasonable time (usually 30 days).