Purchasing Information from The Mortgage Centre

Purchasing Thinking of purchasing a new home or a rental property? The home buying process can seem complex, so we've put together a brief list to explain some of the main steps of purchasing a new home!

1) Determine your potential purchase price and get a mortgage pre-approval Give us a call first to determine the amount of mortgage you qualify for, so that you will know what range of purchase price you can then consider. This is also a great time for you to thoroughly review your current income and expenses, and determine how much of a mortgage payment you will feel comfortable with. Lenders are now prepared to amortize your mortgage for up to 40 years, which will allow you to qualify for a higher priced home. We can also complete a pre-approval for you and lock in your mortgage rate for up to 120 days to allow you time to find a home and take possession of it in that time frame. This is especially beneficial to you when interest rates are on the rise. Together we decide which lender offers the most attractive package of rates and features for your specific needs. It's that simple! 2) Start your house hunting Choosing the right realtor can help ensure you get the right house at the right price. In your home search, consider things such as transportation, distance to work, and proximity to schools, daycare, shopping, recreational facilities, healthcare, etc. Do your research and take advantage of all the professional resources available to guide you through the many choices available when purchasing your first home. There's no shortage of information available to help you make an informed purchase decision. Lenders, as well as CMHC, the Canadian Bankers' Association, and the Home Builders' Association all have brochures (even videos) to make house-hunting stress-free and fun! 3) Choose a home and make an offer It is important to discuss this process with your realtor, who will work for you and negotiate the purchase price and conditions with the seller's agent. Also, ask your realtor to make your Purchase Agreement subject to financing and a home inspection. 4) Applying for your mortgage Once you have a signed and accepted purchase agreement, you will then provide us with the details and we will forward your application to the lender. If you have less than 25% as a downpayment (even zero downpayment), your mortgage will require to be insured by either CMHC or Genworth as per the provisions of the National Housing Act. The CMHC or Genworth insurance premium can be added to your mortgage and will be directly arranged by the lender. When your application is approved, we will follow up with you for all supporting documents required by the lender. Once this is complete - you've got your mortgage! Many buyers also complete a home inspection at this time. Although this is not required by the lenders, a home inspection gives you valuable information on the home you are purchasing and tells you the condition it is in. This helps you avoid purchasing a home that is in need of costly repairs that you didn't realize were needed. 5) Shop for homeowner's insurance Lenders will require that you have adequate property and fire insurance. 6) Preparing for Closing Day! You will choose a lawyer (or a notary if allowed by the lender) to complete the transfer of title and to register your mortgage. Remember to ask your lawyer of all of the costs associated with completing this process such as (but not limited to) adjustments and disbursements, CMHC/Genworth application fee, GST (if applicable), Land Transfer tax, and Surveyor's Certificate or Title Insurance. The lawyer will also collect your downpayment from you, in addition to requesting the mortgage funds from your lender in order to pay the vendor to close the deal and turn over possession to you. On your possession date, the realtor will provide you with the keys to your new home and you are finally ready to move in!

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