Looking for some advice on whether we should wait before applying for a mortgage or move ahead now.
We’re in Alberta looking at an ~$800k new build home. (Build time 8 months)
Current situation:
- 10% down payment saved
- Household income: $210k
- I recently finished probation after switching jobs (same field)
- My Equifax score is around 610
- Partner’s TransUnion score is around 740
- My Credit utilization is currently about 60% due to unexpected emergencies over the past months
- I had late payments on a car loan about 4 years ago, but everything was paid and closed years ago
- No recent missed payments
- Partner is newer to Canada on PR but has stable employment in the same field
Builder suggested, we speak with their mortgage partner. RBC mortgage agent said they should be able to proceed with my situation, but they haven’t reviewed everything formally/on paper yet.
The builder for this new build is asking for a firm mortgage approval at contract signing, which makes me nervous about moving too fast before knowing exactly where we stand.
Main questions:
- Should we wait a few months for my utilization/score to improve before applying?
- Or does one’s better score usually offset the weaker score enough?
- Would waiting likely make a significant difference in mortgage rates/approval odds?
- Any risks with signing a new build contract before a full underwriting review is done? But an underwriter won’t review until a full mortgage application is made right?
- would we get significantly higher rates? Compared to better credit profiles?
Anyone in Alberta or Canada recently go through something similar?
Would appreciate honest advice or experiences.