First Time Home Buyers - Mortgages for New Buyers

Where do you start?
For most Canadians, owning their own home is a life-long goal. It brings with it security, pride of ownership, and the ability to decide which improvements are made and how much they cost. Purchasing a first home is an investment, and regardless of what the current market conditions are, owning is always better than renting.

The first step is to apply directly through my website, with my online form. Once I receive your application, I can do the initial legwork to make sure everything is in form, as far as credit history and rating, and your job history, and income type. Please indicate exactly how much money you will have for a down payment, and its source (savings, gifted, investments, etc.) Or, alternatively, if you are looking for a zero down product.

It is best to have a telephone  appointment so that we can discuss the entire process, so you know what exactly to expect, from start to finish.

Pre-Approval
You need to work with a realtor to find your first home, this is a no cost service for you, the buyer so you should take advantage of the experience and expertise a realtor can assist you with. They will negotiate a purchase price that you are happy with.

Get PRE-APPROVED – this is the most important step to buying a new home, it will tell you exactly what your budget is, and if there are any credit concerns that need to be addressed

• Find a realtor you want to work with to assist you with finding your dream home; I would be happy to refer you to one that I work with all the time

• Get an accepted offer from sellers through your realtor, make a deposit as advised by your realtor

• You should have three conditions on the offer --> 1. Financing, 2. Inspection, 3. Title search and review

• Once we get you to sign all the paperwork from the lender and provide any other documents they ask for, the lender will give us a notice of “file complete”. This means it is safe for you to remove the “financing” condition on your offer.

Your realtor will have a waiver handy for you to sign once this takes place. This should be within that 5 day window of that condition. We typically will provide you and your realtor with a letter confirming all conditions are met.

DO NOT REMOVE YOUR FINANCING CONDITION UNTIL YOU GET THIS LETTER.

• You will have the home inspected for any deficiencies, or glaring structural, mechanical or other issues. If there are many (i.e. Roof needs to be replaced, needs new furnace, etc.) then typically your realtor will discuss with you the possibility of a reduction in the purchase price to assist in those future costs.

• After you have reviewed and are satisfied with that process, your realtor will again have you sign the “inspection” waiver.

• Your realtor should have completed his/her review of the title to the property and discuss any issues there may be with it.

• This whole entire process, should be completed in the week directly after your offer is accepted.

• Closing Date: the closing date is the day that you agree upon with the seller for vacant possession. This could be as early as 2 weeks after the offer is accepted, or as late as 4 months from when you made the offer.

• Lawyer – either your realtor or I can refer you to a lawyer I do business with.

• Approximately 2 weeks prior to possession, you will have to go to your lawyer’s office and sign all the “final” mortgage documents.

• You and your family move in on the agreed upon possession date

• Within a day or so, your lawyer should have the balance owing to you via cheque for pick up if you have been approved for a zero down mortgage. This amount will be minus his/her fees.

Minimum Down Payment Options

• 5% down - savings
• 5% down - borrowed
• 5% down - gifted

Savings - you will need to show 90 days bank statements showing accrued savings, any large deposits will need to be explained/verified

Borrowed - LOC, Credit Card, or Loans. As long as you can debt service it, you're good to go.

Gifted - from family member or employer