SAMARY MORTGAGES

Buying a New Home

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Home ownership is very exciting!

Before you decide to buy a home, make sure you carefully consider the costs of buying, not just down payment and rates.  A mortgage is a combination of rates, prepayment options, overpayment or refinancing charges (penalties), other special conditions and associated fees.

Within the framework of mortgage qualifying rules, which are constantly updated, and with fluctuating interest rates, you need a professional adviser to help you make the right decision.

  • Should you put less or more down for the initial down payment?
  • Should you apply for a fixed or variable mortgage?
  • Should you leverage your current equity such as RRSP?

For most of us, a mortgage is the largest financial transaction in our lifetime. Therefore, it is important that you understand the process and all available options for you. Talking to a professional mortgage agent is the way to start.

How do you get ahead in this ever-changing housing market? The key is preparation.

  1. Determine your budget (stress test for affordability assessment).
  2. Determine your savings plan (e.g., save in RRSP for taxed deferred cash for down payment).
  3. Apply to a carefully selected lender and get pre-approved, typically valid for 90-120 days (Pre-approval will enhance your purchasing and negotiation power significantly).
  4. Look for your dream home, negotiate and get the best price, close the deal.
  5. Enjoy your dream home with your loved ones.

We work with over 60 lenders from major banks to private lenders. We have access to multiple mortgage options and can find the right solution for you. We will navigate the entire process for you, we will get the most economical mortgage to suit your financial circumstances and needs in a timely and speedy manner. We also provide you with good strategies to pay your mortgage off faster, save interest costs in costs in thousands. 

Understanding of your down payment:

  • Purchase price less than $500,000: 5% of the purchase price
  • Purchase price over $500,000 and less than $999,999: 5% of the first $500,000, 10% for the portion above $500,000
  • Purchase price over $999,999: 20% of the purchase price
  • Regardless of the amount of your down payment, at least 5% of it must be from your own cash resources (ex. Savings, RRSP, TFSA etc.) or a gift from a family member (for 1st time homebuyers only). It cannot be borrowed.

Mortgages with less than 20% down payment are subject to default insurance. Typically, the insurance premium will be added to the mortgage amount.

Self-employed Vs. Salaried employee:

    Salaried employee:

  • Pay is receiving as regular pay cheques from an employer (Full time, Part time or even from more than one employer)

    Self Employed:

  • Run a business alone as a sole proprietor, with a partner, or as a corporation;
  • Receive 25 per cent or more of your income from the business;
  • Work on short contracts for different employers; or
  • Paid solely on a commission basis.

It is very important to understand that lenders evaluate salaried and self-employed borrowers the same way based on the size of the down payment and the affordability. The key difference is that salaried borrowers must verify gross income through pay cheques and a letter from an employer. Self-employed borrowers must verify net income, or what is left after business deductions are subtracted from gross earnings. 

For example, if a self-employed person makes $100,000 annually in gross earnings but writes off $25,000 for business expenses, then the net income is $75,000. They can always provide documents to convince lenders if their net income is higher. Otherwise, they will be treated the same way as a salaried employee making $75,000 annually.

Most self-employed clients are reliable borrowers. Their mortgage files may be complex, especially with no standard proof of income, but a professional mortgage agent can navigate the process seamlessly.

Purchase Plus:

Does your existing home or the new home you are planning to purchase need improvements such as a new bathroom, upgrade to kitchen, finishing basement etc.,? There are manageable mortgage products available for you with as little as 5% down.

Purchase Plus mortgage is for consumers looking to buy a home that has great potential but needs renovation or upgrading. This program allows you to make your improvements immediately after taking possession of your new home and have the costs rolled into one easy-to-manage mortgage.

This will make your new home just right for you.

Apply Now, Pre-approval comes to you at no cost and no obligation, whatsoever.

We work for you. Our loyalty is to you, not the lenders.

 

 

To Realize Your Home Buying Dream