New Home Purchase for Owner Occupied Home
Down Payment Required
This is the amount you need to put towards your house upfront. The minimum down payment required will change with the price of the home. If you are looking for a home under $500,000, you will need 5% for your down payment. Then up until $999,999, you will need 5% of the first $500,000 + 10% of closing balance. Over 1,000,000 and you’re looking at a minimum of 20%. We can help you calculate your down payment so when that unique residence comes available, you are prepared to offer with certainty.
Down Payment Options
There are many different innovative approaches to come up with a down payment apart from stashing financial savings beneath neath your mattress. The Home Buyers Plan is a government program that permits buyers to withdraw up to $35,000 from RRSPs for their down payment. Other alternatives include; investments, cash from the sale of real estate, equity borrowed against real estate, inheritance money, or generous gifts from family members (a gifted letter will be required for this). To keep away from a hassle, always confirm with us what your down payment will be so lenders will give a thumbs up on your down payment source.
Know Your Price, Shop Within that Price
Before you begin looking at MLS or contacting your realtor, you’ll need to have an idea of what you realistically can afford to buy. Our affordability calculator allows you to input your info online and get a quick estimate of your purchasing budget. Some of the numbers you will need to provide are household income, down payment amount, and any other debts. Our calculator considers current guidelines and underwriting guidelines to ensure accuracy. While this calculator presents an excellent baseline to begin browsing, it is NOT a pre-approval. Use our calculator now, so that you can start shopping with a plan!
Save Your Rate with a Pre-Approval
Take another step toward homeownership via way of means of getting pre-approved today. First, we’ll determine how much you can afford, then we’ll shop around to locate you a mortgage with the best rate (and terms that fit your needs). The factors that lenders will use to determine whether you qualify for a mortgage are your income, debt, employment history, and credit history. Most lenders will permit us to hold your rate for 120 days, just enough time to discover your perfect home and negotiate a price that you can afford.
Mortgage Terms Outperform Low Rates
Your best mortgage is a lot more than a low rate. Lower rates regularly include stricter terms and more demanding qualification standards as well as larger pay-out costs. Avoid painful surprises during your mortgage term by searching in advance before you lock-in. Pay attention to whether the rates you’re eyeing are fixed or variable rates. With a fixed-rate – interest remains equal for the whole term. While a variable rate means the interest can change during the term (the cost associated to get out of a fixed-rate mortgage compared to a variable rate mortgage will be vastly different). Once we’ve got your application, we can negotiate with our relied-on lenders to discover a mortgage that is proper for you. We promise to focus on these tiny details that make a massive difference.
Be Aware of All Costs from start to finish
Don’t allow unexpected fees to derail your plans. Be organized to have cash on hand to cover costs for a home inspection, appraisal, land transfer tax, legal fees, and disbursements. As a part of your mortgage approval, banks will often need to see evidence of 1.5% of your purchase price set aside for closing costs, separate from your down payment. With years of combined experience, our team has seen it all. When you share your purchasing plans with us, we can make certain you are aware of all the costs associated with your specific property, if applicable (ie: land survey, water quality inspection, septic, etc.) We consider each detail, ensuring your mortgage adventure to be hassle-free.
*Please note these are for an owner-occupied purchase only. These numbers will change with rental purchases/Real Estate Investing (Minimum down for rental property is 20%)