When you purchase a home, you will be expected to make a down payment so you need to save for this ahead of time. Remember the bigger the down payment the more affordable the repayments will be. If you do not have sufficient funds to make a 20% down payment you will have to take mortgage insurance, which will increase the monthly repayments. It is also necessary to factor in 2% for closing costs which you will have to cover.
Start off your preparation for the big step by reviewing your credit rating. Your credit score is one of the most important determining factors in whether you will qualify for the home finance or not, so you should get your credit rating in order before even applying for a mortgage.
It is also a good idea to reduce your income to debt ratio, as lenders will use this to determine whether or not you can afford the repayments on the mortgage.
Most Mississauga residents aspire to home ownership but purchasing a home can be a daunting task especially if you are buying your first home. There is no doubt that this is an exciting time in anyone’s life, but the road to home ownership is fraught with risks.
To qualify for a mortgage your monthly housing costs should be under 32% of your gross income and your income to debt ratio must be under 40%.
Calculate what monthly payments you can afford before approaching the mortgage broker. When working out what repayments you can afford don’t forget that there are other costs associated with homeownership that must be factored in. These include such expenses as insurance, property tax and home maintenance.
As a first-time homeowner, you may qualify for government assistance. The Canadian government will allow you to borrow $25 000 from your Registered Retirement Savings Plan. Your spouse can do the same. You have fifteen years to repay the funds. There is also a $750 tax credit for first time homeowners.
...pick the one thats right for you.
|HELOC||4.2% (prime + 0.25%)|
First National Financial
Street Capital Bank
|5 year variable||1.15% (prime - 1.3%)|
|3 year variable||0.99% (prime - 1.46%)|
|Line of Credit||Starting at 3.00%|
|Equity Loans||Starting at 5.99%|
|Private Mortgages||Starting at 4.99%|
Getting a private mortgage was not easy to be honest, but at least with Mr. Leon it was doable. Thank you for your help!
There are a lot of mortgage brokers in toronto to choose from, I was a bit intimidated by that. Don't regret I picked CMB, they took the lead and made sure to cover all the bases
I was renting an apartment for a long time and finally decided to take a big step - get a mortgage instead. Team at certified Mortgage Brokers laid out various options for me. The actual process went smooth and quick, happy with my new home.
My wife and I decided to refinance our mortgage and started looking for a mortgage broker in Toronto. There were so many options, so you can imagine how overwhelmed we got! After talking to Leon we decided to proceed with Certified, didn't regret that decision once. They always gave useful recommendations, were attentive, and constantly in touch. And most importantly (for us) they helped us to save some money!!
Vita was great. Helped my son with all the paperwork and got him very good interest rate. On the closing date called to follow up if everything went fine. Quite a pleasant experience. I would recommend this firm for anyone who is looking a mortgage broker.
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