A step-by-step guide to buying your new home!


 

Step 1

Gather Information and Documentation required to determine which type of Mortgage suits Your Needs

  • Income Confirmation (Letter from Employer, 2 Recent Pay Stubs or Two Year NOA’s)
  • Down Payment and Closing Cost Confirmation (90 Day Savings History showing funds are Yours via Bank Statement or completed Gift Letter from Family member)

Step 2

Submit and Receive Pre-Approval

Step 3

Find a Home and have an Offer to Purchase Accepted

  • Forward accepted Offer to Purchase and MLS Listing or Feature Sheet to me via Fax or Email

Step 4

Submit to CMHC and receive Conditional Approval

Step 5

Meet All Outstanding Conditions

  • Example: Was an Appraisal necessary? Who will be your Lawyer? Have we proven down payment and closing costs?
  • I then send a Final Approval Letter to your Agent or Builder

Step 6

Finalize and Sign Commitment Letter

  • I will call you to set up an appointment
  • You bring in a VOID cheque
  • You come in and Sign the Commitment Letter
  • Discuss Life and Disability Insurance

Step 7

See Your Lawyer

  • Sign Mortgage Documents
  • Provide Balance of Down Payment

Step 8

Possession Date!!

  • Receive Your Keys!
  • Move into Your New Home!

CMHC / Genworth Premium Chart

DOWN PAYMENT
PREMIUM
5% downpayment
4% CMHC or Genworth
10% downpayment 3.1% CMHC
15% downpayment 2.8% CMHC

Qualifying Ratio’s

  • 35% - Gross Debt Service House Payments (P&I, Prop Tax, Heat & ½ Condo Fees)
  • 44% - Total Debt Service All Payments (House Payments and all other payments you have for eg. car & student loans)

Pre-Payment Privileges

  • Depending on the Institution these will vary.  When choosing the right Lender for your needs we will discuss your Pre-Payment Privileges, which will help you save money over the life of your mortgage

Payment Frequency Options

  • Monthly, Semi-Monthly, Bi-Weekly, Weekly
  • Can be Changed at anytime

Terminology

  • Term – Contract Period. Generally, the time the interest rate is fixed
  • Amortization – Time to Pay the Mortgage down to $0.00. Generally up to 25 years

Questions?