It is like a buyer's market in real estate term and you are the buyer.

If you have good credit and a good job, you are on top of the world. You should be able to get the lowest and best mortgage deal possible.

If your credit status is less than desirable, do not despair. You are still on top of the world because there are many lenders who are still willing and desperate to get your mortgage. You might pay a slightly higher mortgage interest rate though.

Have you heard of subprime mortgage lenders in the States. Subprime mortgage lenders are mortgage lenders that will lend money to bad credit borrowers. With the recent downturn in real estate market in the U.S. these subprime mortgage lenders have lost billion. But this is not your problem.

Banks in Canada are a bit more cautious lending out mortgage money. However they still do if you meet some basic criterias.

The basic criterias that mortgage lenders look at are:

- Credit History. Have you been a good boy or girl. Have you fulfilled your financial obligations promptly and consistently. In other words have you made your monthly payments to the bank on a timely manner, before due date, for your credit card debt, your car loan, or your mortgage payment.

Some mortgage lenders will try to understand the reason for your bad credit record and work with you to improve your credit standing.

- Do you have a good steady job. This is important because without a job it is unlikely that you will be able to make the monthly mortgage payments.

- Is your income steady and enough to pay for all your normal living expenses as well as your monthly mortgage payments.

It used to be that about one third of your gross income is earmarked for your mortgage payments. Nowadays many mortgage lenders are prepared to accept 50 percent of your gross income in the mortgage loan approval process.

- Do you have a downpayment saved. Mortgage lenders do not want you to have to borrow your downpayment from family and friends. Because this will add burden to your monthly financial obligations. Gifts from parents are acceptable. If you have RRSP you may borrow from your own RRSP for the downpayment.

Mortgage interest rate is pretty much standard across the mortgage industry for borrowers with strong credit and a good job. Mortgage rate for bad credit borrowers will vary from one lender to another. You need to bargain more aggressively here.

Mortgage broker is getting more popular each day in Canada. In the U.S. it is widely accepted. If you are hesitant please check it out here.

Your local newspaper publishes daily mortgage "Posted Rate" of the main financial institutions in Canada. Beware that the posted rate is rarely applied nowadays. Anticipate a big mortgage rate reduction of one to one and a half percent.

Hope you are now ready to look for a house.

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