Home Purchase Mortgage

Are you ready to fulfill your dream of having a place to call your own?

Buying a home is one of the biggest decisions financial and emotional decisions you will ever make. To be sure you're ready, here are a few questions to ask yourself:

• Do you have the necessary financial management skills?
• How financially stable are you?
• Are you ready to take on the responsibility of all the costs involved in homeownership, including mortgage payments, repairs, and maintenance?
• Are you able to devote the time required for home maintenance?

Home ownership is not for everyone. We encourage you to take a moment and think through the advantages and disadvantages of owning and renting. Being both Financially and Emotionally ready to own a house is imperative. Buying a home isn't just about the money. Listen to your heart and take an honest look at your lifestyle.

Here are some key subjects we can guide you through the process.

Research Tips

Know your budget and know what you're looking for. Find a realtor and mortgage broker you trust, they are free! Talk to a friend or loved one who owns a home. Research mls.ca. Check your own credit for free at equifax.ca. Use our mortgage calculator. Set long-term goals considering that this likely won't be your last home. Make a list of questions to ask your mortgage broker and realtor.

Pre-Approvals

Real pre-approvals include your true affordability and set you out for full approval. A true pre-approval gives you a rate hold, if rates go up you have locked in your rate, if rates go down you get the lower rate. A true pre-approval means your mortgage broker has reviewed your credit and all necessary documents. This process prevents any surprises when putting an offer in on your potential home.

Documents Required

Employed Applicants:

• Pay stubs
• Employment letter
• 2 years T4's & possibly Notice of Assessments

Self-employed applicants:

• 2 years T1's (with statement of business activities)
• Notice of Assessments
• Business licenses or articles of incorporation

Required from all applicants:

• 90 day history of down payment; name must be included on statement
• Gift letter with history of where the funds came from (if applicable)
• Void cheque - from any account you want the mortgage payments to come from
• Government issued photo ID
• Bank statements showing 1.5% of the purchase price for closing costs
• More or less documents may be required depending on the situation.

Get a Team Working for You

Having great professionals around you is the key to a happy and smooth transaction.

Mortgage Broker - Your first step. We are free and paid by the lender! A good mortgage broker lights your path and heads you in a safe direction.

Realtor - This relationship should be a right fit. Your realtor should seek to learn what you need, right now as well as for the future. Your broker can recommend someone they know and trust.

Lawyer - Call a lawyer ahead of time, and get a price if you'd like. Lawyers prefer to know as soon as possible if they have to close a deal. Purchasing a home should be a fun experience! Your broker can recommend a great lawyer team.

Down Payment

Besides verifying income, your down payment is the most important part of final approval.

• Most lenders require a 90 day history of the accumulation of savings for a down payment.
• If the down payment is being gifted, a gift letter is required from the gift as well as a bank statement showing the gifted money going into your account.
• Closing costs are also verified via a 30 day history. 1.5% of purchase price.
• If down payment is borrowed, proof is required.
• RRSP's may also be used.

Closing costs

• Lawyer $1,200 - $1,500
• Inspection $300 - $400
• Appraisal $300 - $400
• Land Transfer Tax - First time home buyers get a refund of up to $2000.
• Always be prepared to show your lender that you have 1.5% of purchase price for closing.