First Mortgage

First Time Buyers Mortgage

If you a first time home buyer, you will want to get pre-approved for a first time buyers mortgage before you start looking at homes. A pre-approval is a must in the fast pace real estate market in Ontario. A mortgage pre-approval will determine the maximum amount you will be approved for. It will also hold the interest rate for you while you shop, insuring that you receive the best mortgage rates possible when it comes time to make your offer.

To ensure that you receive the best mortgage rates Contact me today.

 

Down Payment for First Time Mortgage

You will need a down payment for your first time mortgage and I can help you look at your options and requirements. If you are taking advantage of the Home Buyers Plan through Revenue Canada to utilize your RRSP, you should make sure that you have notified your financial advisor about your plans to purchase. You will then be required to fill out a T1036 form from Revenue Canada. Your financial advisor or tax office can supply you with this form. Receipt of your funds may take some time so it is important that you request your funds early on in your home buying process.

If your down payment is coming from a savings account, you will need to provide me with 90 days history in the form of bank statements.  If you are using online banking to print forms, make sure your name is clearly visable, proving that you are the owner of that account.  Additionally, be prepared to explain any larger deposits and possibly provide proof.

A First Mortgage is a first position on the property.  It takes priority over every other claim on a property in case the owners default on payments. This means that the first mortgage company receives its payment in full, way before other liens or mortgages associated with a property are paid off. So first mortgages services are lower risk. But it is still important to get the best possible deal on your first mortgage to ensure that it is still attractive for lenders to work with you in the case of a second mortgage, if you need it.


Why It Matters To Lenders

Select the right first mortgage services, because your choice will have some serious effects on any subsequent lenders that you may need to work with. Your first mortgage company may put in some stipulations that badly restrain any secondary lenders you may have.

After all, they won’t have much of an incentive to put themselves in the precarious position of providing you with a second mortgage on your title. Second mortgages can be a huge risk as evidenced by the minimum 5% insurance rate these are subjected to.


How to Secure the Best Possible First Mortgage Services

For starters, do your research before finalizing the mortgage company you will work with to secure your first mortgage. Also, aim for the lowest mortgage rates possible because low rates can lead to a bigger qualified amount. Also try the following things to ensure a good mortgage bargain the first time round:

1.    Keep Track of Your Budget

What you can afford to pay for a home? Answer realistically, keeping in mind your future financial goals. Do not take out a mortgage loan that takes you to the limits of your finances, because this may put you in serious trouble if you do need another loan, a new car or something expensive, later on.

2.    Know Your Credit Details

Your credit may have hidden issues that can keep you from getting a great deal on a mortgage loan. So before applying for a loan, request TransUnion or Equifax for your credit report.

3.    Consult with a Mortgage Expert

Your mortgage broker can help you find some great deals from lenders. You can even work with them to get a pre-approved mortgage to find out exactly how much you can qualify for and then shop accordingly with peace of mind.


First Mortgage: It’s good To Know!

Anyone can qualify for a 5% down mortgage, even on your second mortgage. So don’t be dwindled out of some savings when going shopping for mortgage.  Also remember that you can use up to $20,000 from your RRSP account. And you will have 15 years to put it back in! Just because you are a first time home buyer, there is nothing restricting you from spending on your home, except for what you can afford to pay.

We are here to help you secure the best possible first mortgage loan. As a mortgage broker, it is my job to get you the loan on the best terms and for lowest payments possible. Contact me today or call at 416-402-7264 for a free consultation!

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