WHAT ARE YOU LOOKING FOR?

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