I have realized that since lately it harder to get a mortgage these days. I wonder if it is due to the financial crisis in the US at the moment. Here are a very interesting article regarding the mortgage crisis with questions and answers.

Is it harder to get a mortgage these days?
The short answer is yes! If your credit is beat up, you’re buying a beat up house, you’ve got too much debt, no down payment, or you can’t prove your income it’s tough to get a mortgage. Otherwise, it’s easy!

The nature of the current mortgage market is that credit is more difficult to come by for lenders – therefore, they’re stingier than they have been in the recent past because they can’t afford to take any more risk. The good news is that, for 80% of people out there, they’ll still qualify easily for a mortgage. There is always demand for qualified applicants and good homes. That is simply being accentuated because of the current economic environment. Don’t forget, lenders make money by lending money…so they want to lend it to you. You just have to be able to pay it back.

I heard that rates have shot up! Is this true?
Actually, not really. Without getting technical, rates have both decreased AND increased – at the same time. From a technical standpoint, rates have decreased…however, borrowing has gotten much more expensive, so the spreads between the true cost of borrowing and what lenders are paying have increased. The net result is a slight increase in some rates – but nothing serious. In fact, interest rates are still very low on a historic basis and we’re likely to continue to see rates that are affordable for Canadians who have good jobs and are not carrying too much debt.

Read More at [Edmonton Blog]

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