First Time Buyers

Your first purchase is a great way to get into the market and invest your money, even if its not your dream home. Instead of paying someone elses mortgage, you can pay your own mortgage and build equity in your home. The sooner you stop paying rent, the sooner you can begin building equity. 

The first step to buying a home is getting pre approved BEFORE you make an offer on a home. As a young broker, I understand how stressful getting a mortgage can be. Lets connect so I can make this experience as easy as possible. My services are free as I get paid by the lender. Contact me today to get started!

 

More information on Mortgages:

 

Minimum Down Payment

  • Purchase price of $500,000 or less = 5%
  • $500,000 to $999,999 = 5% of the first $500,000, 10% of the remainder
  • $1,000,000 or more = 20% 
  • Rental properties = 20% 

 

Mortgage Default Insurance 

  • This premium is added to your mortgage balance if you put less than 20% down.
  • Protects the lender in the event a borrower defaults on their mortgage. It does not protect you (the borrower).
  • Gets paid with your monthly mortgage payments, NOT paid upfront.
  • Click here to learn more

 

Property Transfer Tax

  •  A tax payable to the Provincial Government by purchasers of real estate.
  • Calculated as 1% on the first $200,000 of the purchase price, 2% on the amount between $200,000 and $2,000,000, and 3% on the amount between $2,000,000 and $3,000,000, and 5% of the value.
  • Payable at closing.
  • First time home buyers may be fully or partially exempt if the purchase price is under $525,000.
  • Click here to learn more

 

Legal fees

  • For services provided by your lawyer: conducting a title search, registering the mortgage and transferring your name onto title. 
  • $800-2,000
  • Payable at closing.

 

Fixed rate

  • A fixed interest rate does not fluctuate during the mortgage term. This option allows your payment to remain constant so you know exactly how much you will pay every month and the amount you will have paid off at the end of the term.
  • Fixed rates are a great stress free and simple option. 

Variable rate

  • A variable interest rate will fluctuate with prime rate throughout the mortgage term. This impacts the amount of principal that you pay off each month as your mortgage payment will remain constant. Variable interest rates are generally expressed in relation to a bank's prime rate, which is set by the bank from time to time. A bank's prime interest rate may change at any time. 
  • Variable rates have smaller prepayment penalties and are historically less expensive than fixed rates. 

 

Mortgage Life Insurance

  • It's a sound idea to seriously consider mortgage life insurance. Generally, the cost is low and can be incorporated into your mortgage payments.
  • In the event of death, terminal illness, or permanent disability, your balance will be paid in full (because details vary among financial institutions, it's a good idea to read the policy carefully). Quotes are available with each approved mortgage.

 

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