First Time Home Buyers
Are you a first-time home buyer wanting to purchase a home but don’t know where to start?
I will guide you through the process of setting up your financing and take advantage of any home buyer incentives and programs that may apply to you as your mortgage broker. I am here to make sure you are set up with the right mortgage lender and product that suits your needs right now and in the future.
The first step is us meeting either in person at my office or over the phone and determining where your finances stand. Going through the pre-approval process is one of the most important steps in the home buying process. When you sit down with me, we will:
- Determine what you can afford
- Review your credit history
- Give you knowledge of your price range to allow you to shop with confidence
- Secure you today’s mortgage rate for 90-120 days
- Discuss down payment options (Ex. Cash, RRSP, Gifted Funds, TFSA, etc.)
This is also a great time for you to bring forward any questions that you may have about the home buying process or your finances. Even if you’re not ready to purchase a home right away come in and see me so we can set you up on a structured plan so you can purchase in the future.
If you’re looking to buy your first home in Canada, please contact me for more details!
How do we determine what you can afford?
In order to determine what you can afford we must start by taking a look at your income. Are you a full-time employee? Part-Time? Self-Employed? The list really can go on and on. I will assess how much of your wage and earnings we can use in your application. We can also add additional income in if you receive certain benefits, support payments, or take investment income.
Once we figure out how much income we can use, we will compare this to your current outstanding debts. If you owe on credit cards, car payments, line of credits, or anything with a frequent payment, we will need to include these on your application. Next, we add on your potential home ownership fees. These would include a mortgage payment, property taxes, strata fees (if applicable), and utilities. Once we have all of these monthly payments in place, I am able to play around with the numbers and figure out exactly how much you can afford.
The Bank of Canada sets specific ratios that we must have all of your income and debts fall in line to. It sounds much more complicated than it is, and when you’re working with me you won’t have to worry about the math. I will take care of everything and ensure we can maximize how much you can spend!
How does a rate hold work?
When we go through the pre-approval process, we will lock you into a competitive rate with our lenders. Depending on each lender they last from 90 to 120 days. In the even the rates in the market go up, you will keep your lower locked in rate. If the rates were to fall during this period, your locked rate would also fall. It is the best way to guarantee you save some money!
What can I use for a down payment?
Mortgage lenders and insurers want to see that you have a down payment ready and do not need to take out a loan for it. It’s best to disclose both the amount of your down payment and where it comes from (cash, investments, RRSP or gift) on your application.
- Cash: Lenders look at your last 3 bank statements to see if you have enough money saved for your stated down payment. Investments: Lenders require a recent statement of non-registered investments such as stocks, bonds and GICs.
- RRSP: You may use up to $35,000 from your RRSP tax free provided you have not owned a home for the last 5 years.
- Gift: If any or all of your down payment is a gift, it must be from a relative and accompanied by a letter stating you are not required to pay the money back. You must also provide a bank statement that shows the deposit of the gift.
If You Have Any Questions,
Call @ (250) 819 0433
Or, for your convenience, you can contact me using any of the below methods: