Rates, pre-payment privileges, portability, assumability, collateral charges, penalties, default insurance, terms, variable rates appraisals.These are just some conditions that each person needs to know when looking at mortgages. We want you to be aware of the uniqueness of mortgages. Each is different from the other and you need one tailored just for you!
WHAT ARE YOU LOOKING FOR?
First Time Purchase
Purchases
Refinancing
Renewal Or Transfer
Private Mortgages
First Time Purchase
WELCOME TO THE ADVENTURE OF OWNING YOUR FIRST HOME
A good mortgage broker takes care of the details to ensure a safe, smooth and simple process to home ownership.
In an effort to simplify the process, 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.
• Financial Advisor – Now that you have a mortgage, it’s time talk to a financial advisor about your insurance needs. Again, ask your broker for someone he knows and trusts.
From Shopping to Moving In
You are now pre-approved and are ready to put an offer on a home.
• Get a good deal and make an offer conditional on financing and inspection for a minimum of 5 business days.
• Once your offer is accepted, send it to your mortgage broker. Your realtor will require a deposit.
• Your broker will submit the file for full approval while you have the place inspected.
• Once approved, an appraiser may be required, which is one reason we need a conditional period for financing.
• When all broker documents are signed and finished the lender will send all the documents to your lawyer. You will get a call from the lawyer to see them and bring a bank draft for your down payment.
Congratulations, the countdown for keys has begun.
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. Learn more.
• Always be prepared to show your lender that you have 1.5% of purchase price for closing.
More Benefits for First Time Home Buyers
• Down Payment Help – Click Here
• Tax Credits – Click Here
• Home Buyers Plan – Click Here
Purchases
In an effort to simplify the process, here are some key subjects we can guide you through.
The Process
Pre-Approval
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.
Document Collection: Once we have your documents and an accepted offer, we will work hard to get you an approval.
Documents Required:
Employed Applicants:
- Pay stubs
- Employment letter
- 2 years T4’s
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:
- Void cheque – from any account you want the mortgage payments to come from
- Government issued photo ID
- Accepted offer as well as MLS listing
- Documentary evidence of down payment
More or less documents may be required depending on the situation.
Approval
Once approved, we will call you to go over the details and sign the documents. An appraisal may be required, which is one reason we need a conditional period for financing. Additional documents may be required depending on the situation.
Closing
When all broker documents are signed and finished the lender will send all the documents to your lawyer. You will get a call from the lawyer to see them and bring a bank draft for your down payment.
Congratulations! The countdown for keys has begun.
Renewal Or Tranfser
Upon renewal, lenders will often send out a renewal letter in advance. Many homeowners aren’t aware that the renewal rate is not always the best rate. It is in your best interest to call us before signing the renewal paperwork. We may be able to obtain a better rate and offer strategic advice.
Another good practice is to start shopping for a new mortgage around 2 to 4 months before your mortgage is due for renewal. This will ensure adequate time for us to find you the best deal possible.
Transfers
What happens when you decide to sell your home and move before your mortgage term is up? Many times, homeowners will incur unexpected high penalties. In order to avoid having to pay high penalties, you may be able to transfer or port your mortgage. Talk to your mortgage professional today to see if this solution is available for you.
Refinancing
Accessing the equity in your home to pay off higher interest debt can help you save a lot of money in interest. In addition, it will help simplify your payments. Talk to us today to see if this is the right strategy for you.
Some homeowners chose to refinance in order to fund large expenses, such a home improvement projects. One option for refinancing your home is to choose a Home Equity Line of Credit. This can ensure you have enough funds to complete your project with the flexibility of being able to pay off the debt quickly with no penalty.
The Process
Document Collection: Once we have your documents, we will work hard to get you an approval.
Documents Required:
Employed Applicants:
- Pay stubs
- Employment letter
- 2 years T4’s
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:
- Void cheque – from any account you want the mortgage payments to come from
- Government issued photo ID
- Copy of your Current Mortgage Statement and Property Tax Bill
More or less documents may be required depending on the situation.
Approval
Once approved, we will call you to go over the details, discuss strategy and sign the documents. An appraisal may be required as well as any additional documents required by the lender.
Closing
When all broker documents are signed and finished the lender will send all the documents to your lawyer. The lender will call you to set up an appointment to sign documents with them and close your new mortgage.