THINGS YOU NEED TO KNOW  

1.      Open mortgages offer terms from 6 months to 5 years.  It’s a mortgage in which you can prepay all, or part of the original balance without penalty.  Closed mortgage has terms from 6 months to 10 years.

2.      ARM or Variable Rate Mortgage is a closed mortgage.  Terms are 3 years or 5 years.  Rates fluctuate with prime, usually monthly.  Expect to pay a penalty if you want to pay it off early or switch lenders.

3.      Portable:  No mortgage is portable.  It is the rate and term that are portable.  If you move to a new place and want to take your mortgage with you, you will need a new mortgage with the same rate, term, and amortization that was left on your old place.

4.      Conventional:  A mortgage that does not require a mortgage insurance fee.  Typically this is a mortgage which is 80% or less of the purchase price or property value.

5.      CMHC, Genworth or AIG United Guarantee Mortgage Insurance companies licensed by the Federal Government to provide mortgage insurance for lenders, to protect them against default by the borrower.

TYPES OF MORTGAGES

Adjustable Rate Mortgages: The ARM is a closed mortgage that offers you the ability to take advantage of low, short-term interest rates offering the piece of mind that you can convert to a Fixed Rate Mortgage at any time during the term.

Fixed Rate Mortgages:  The Fixed Rate Mortgage is a closed mortgage that offers you the peace of mind knowing what your payments will be the same for the entire term of the mortgage, offering competitive prepayment privileges so you can pay off your mortgage faster.

5% Cash Back:  The Cash Back mortgage is a closed mortgage that offers you the ability to receive 5% of the mortgage amount back in cash to assist with all those “additional costs” related to moving or to use for your downpayment. 

Prepayment Privileges:  Adjustable Rate Mortgage, Fixed Rate Mortgage and Cash Back Mortgages  all permit the following prepayment privileges to assist you in paying off your mortgage faster:

        1.      Prepay up to 25% of the original principal balance of the mortgage (differs between lenders from 15% - 25%) each year based on the anniversary date of your mortgage.  This privilege does not carry over.  Prior to proceeding with your new mortgage you should make sure you understand the prepayment options relating to your mortgage.

        2.      Increase your payment amount by up to 15% - 25% (differs between lenders) of the original registered payment amount each anniversary year,

FIRST TIME HOME BUYER MORTGAGES

Congratulations! You have made the decision to purchase your first home and what an exciting time this is for you.  What ever the deciding factor may be for this decision I am here to help you achieve your goal.  Your first step is meeting with your mortgage broker and discussing the type of mortgage that fits YOU!  

Let me explore the different financing possibilities for you.  Please fill out the online mortgage application or contact me to complete the process of obtaining a Pre-Approval and to find the right mortgage for you.  After the Application is complete and we have received a Pre-Approval for you, -  you are now ready to find your dream home with the assistance of a trusted real estate agent. Your mortgage interest rate is guaranteed for 90-120 days this will ease the stress of buying your home and allow you to enjoy the buying process knowing that you have the lowest interest rate secured and available to you.

WHAT YOU NEED TO KNOW:

1.      Down payment options:- 

        a.       From your own resources – If you have collectively saved up sufficient funds for your downpayment on your own, you will need 3 months bank statements to show that your balance has been accumulating. 

        b.      Gifted down payment – You are allowed to borrower the funds from a family member who would be required to sign a Declaration stating that you are not required to pay back the downpayment.  

        c.       RRSP – there are a few programs available when using your RRSP for your down payment.   If you are using your RRSP's for your downpayment please check with your/an accountant to see what is the best way to cash these in.

2.      Closing Costs:- 

        You will also be required to confirm that you have sufficient funds for closing costs which are calculated at 1.5% of the purchase price.  Your closing costs consist of Legal fess and disbursements, adjustments for water/sewer, and property taxes, adjustments for pad rent, strata fees or any related prepaid expenses that have been paid by the sellers with respect to the property/home you are purchasing.   As a first time home buyer you are or should be exempt from the Property Transfer Tax (some restrictions may apply).