OUR LENDING SOLUTIONS
1ST TIME BUYERS
Let a Mortgage Centre specialist help you understand the options available to you at this important stage in your life.
Take comfort knowing that a Mortgage Centre specialist will provide you with all the information, sound advice, and assistance you need, every step of the way.
Below is a list of topics you’ll want to read over as you plan what may be your largest purchase ever. If there’s anything you’re unsure about, please don’t hesitate to talk to your local Mortgage Centre specialist. We’re prepared to do what we can to help make things proceed smoothly, quickly and effortlessly.
- Choosing a Realtor
- Finding and Purchasing the Right Home
- Making House Hunting Fun
- Affordability and Financing
- Selecting the Right Mortgage
- Applying For Your Mortgage – A Checklist
- Before You Sign the Offer
- On Closing Day
- Mortgage Life Insurance
- Prepayment Privileges
Choosing a Realtor
Choosing the right realtor can help ensure you get the right house at the right price. You want a real estate agent whose attitude and availability inspire your trust. Start by seeing who’s most active in your neighbourhood. An agent who makes regular sales calls and keeps you informed of listings and sales in your area probably pursues business aggressively.
Set up appointments with a few agents from different companies and assess their presentations. Are they prepared? Have they done their homework in advance? Be sure to ask if the realtor is acting for a vendor or for you. Work with someone you relate to, with whom you have some chemistry, and who offers excellent service and value.
Affordability and Financing
Talk with your Mortgage Centre specialist to review your current income and expenses. We’ll help you take into account how your new mortgage may change your monthly expenses. Securing a pre-approved mortgage with a lender that checks your credit rating will allow you to get an idea about how much mortgage you may qualify for, so you can have a price range in mind when you look at different properties.
Lenders determine affordability by looking at your Gross Debt Service ratio (GDS) and your Total Debt Service ratio (TDS). The GDS ratio is based on what you can afford to pay each month; it includes mortgage payments, taxes and utilities. The TDS ratio includes everything covered under GDS plus all your other financial obligations.
A Mortgage Centre specialist can help you do a complete analysis based on net income and projected budgets to determine what you can comfortably afford.
The pre-qualifying stage is also the time to find out about the difference between conventional mortgages and high-ratio insured mortgages. Ask about assistance programs for first time homebuyers.
A Mortgage Centre specialist will also discuss closing costs with you, such as land transfer taxes, legal fees, and other disbursements. Before you’re pre-qualified, your Mortgage Centre specialist will run your credit bureau report and ask for written confirmation of income, as well as how much you plan to put down on your purchase.
Once you’re pre-qualified, the interest rate may be guaranteed for 60 to 90 days from the time of your application. If rates drop, you’ll get the lower rate; if they rise, you’re covered. And just because you pre-qualified by a certain financial institution, you’re by no means committed to that lender. We’ll continue to shop the market to get you the deal that we believe will suit your needs!
Choices in selecting a mortgage include:
Conventional vs. high-ratio or insured mortgages
A conventional mortgage is a mortgage that has a principal amount that is no more than 80% of the appraised value or purchase price of the property, whichever is less. The principal amount of a high-ratio or insured mortgage is usually more than 80% of the appraised value or purchase price. An insured or high-ratio mortgage may also be referred to as an NHA mortgage because it may be entered under the provisions of the National Housing Act and in many cases must, by law, be insured. In general, the borrower pays the insurance premium as well as application, legal, and property appraisal fees.
Closed vs. open mortgages
Closed mortgages generally offer lower interest rates than open mortgages of the same term, but open mortgages let you pay off as much as you want, any time, without paying a prepayment charge.
Short term vs. long term
The term you select is important, too. Short term mortgages are appropriate if you believe interest rates will be lower at renewal time. Long term mortgages are suitable if you feel current rates are reasonable and you want the security of budgeting for the future. This may be especially important for first time homebuyers.
Fixed rate vs. variable rate
You can choose a fixed or variable interest rate. A fixed rate mortgage makes it easier for you to budget for whatever term you select. A variable rate mortgage fluctuates with the market.
Specialty mortgages creatively combine the best of all worlds. Your Mortgage Centre specialist can help you select the options that are best for you.
Applying For Your Mortgage – A Checklist of some things you will need
When applying for a mortgage, you will need:
- A copy of the accepted Offer To Purchase and the land survey.
- A salary letter from your employer (self-employed buyers may require financial statements for the past three years as well as personal income tax returns).
- Confirmation that your down payment came from your own resources (e.g. bank statements or a gift letter).
- A list of all your assets and debts along with account numbers.
- A copy of the Real Estate Listing if buying an existing home.
- Condominium financial statements, if applicable.
- If you are buying a home to be constructed, bring a picture of the property, a copy of the building plans and specifications, the land survey, plus your agreement with the builder.
Your Mortgage Centre specialist can help you determine how much you can afford, obtain a pre-qualified approval, and select the mortgage that’s right for you. This allows you to act quickly when you find the home you want. After your real estate agent draws up an Offer To Purchase between you and the vendor, contact your mortgage broker. Your deal is almost complete!
INVESTMENT PROPERTIES
Whether it be a house, cottage, farm, condo, or plot of land, buying real estate is traditionally a sound and profitable investment, offering both rental income and capital gains.
However, investment property ownership isn’t for everyone. Along with the potential benefits come potential concerns; from legal to financial, so it’s a sound idea to consult a financial advisor, a lawyer and an accountant prior to considering an investment property purchase.
Because investment property mortgages are subject to specific governmental requirements, mortgages are constantly changing. It’s a good idea to consult with a Mortgage Centre specialist that brings experience and training to the table, helping you make an informed decision about your investment property mortgage options.
Discuss your needs with a local Mortgage Centre specialist today.
MULTI-RESIDENTIAL PROPERTIES
Looking to branch out and invest in steady streams of income? Multi-residential properties provide investors an opportunity to build wealth.
The most obvious advantage of buying any income property is having other people payoff the debt on your investment property. And with interest rates low, there’s no time like the present to jump in.
There are a number of decisions to be made with regard to owning a multiple residence property. From property management to occupancy rates, being an owner carries a lot of responsibility. It’s a good idea to discuss your options with a financial advisor, a lawyer and an accountant before you start the process.
Mortgages for multiple residential properties are subject to governmental regulations Lenders may also have specific requirements for funding a mortgage of this type.
At The Mortgage Centre, we’re experienced in working with multiple residential property mortgages. We’ll provide advice on financing and shop the market to ensure you get the best mortgage to meet your specific needs.
Talk to us
Have any questions? We are always open to talk about perculiar need, new projects, creative opportunities and how we can help you.