First Time Mortgage

 Category Archives: First Time Buyer Guide…

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First Time 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.

Mortgage  pre-approvals generally take 2 business hours to complete. To ensure that you receive the best mortgage rates or today.

Down Payment for First Time Mortgage
You will need a down payment for your first time mortgage and Claire 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 in the form of a “Gift”, you will be required to supply proof in the form of a letter that states who is gifting you the money, what it will be used for, and also that for a copy of a gift letter we commonly use.

If it 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.  This is to weed out borrowed funds or funds from illegal sources.  For further information about land transfer tax , see our land transfer tax page.

Homebuyer 95 Mortgage Insurance Program

The Genworth Homebuyer 95 program offers qualified Canadians an opportunity to own a home with as little as 5% down payment or refinance their existing home up to 95% LTV.

Acceptable loan purpose

* Purchase transactions
* Refinance

Loan-to-value ratio limits

* 1 – 2 units: 95% LTV
* 3 – 4 units: 90% LTV

Maximum Loan Amounts

* No Maximum

Eligible properties

* Maximum 4 units
* New construction or existing properties
* Property must meet the following criteria (3 & 4 units):
o Municipal zoning
o Fully self-contained units
o Remaining property (economic) life must equal or exceed the amortization of the loan
o Must be located in a major centre with a viable investor market

Terms/qualifying interest rates

* Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
* For terms less than three years, the qualifying interest rate is the greater of three-year posted rate or contract rate
* For terms of three years or more, we use the contract rate

Amortization options:

* LTV > 80%: Up to 35 years
* LTV ≤ 80%: Up to 40 years

Any Questions feel free to contact us.