GET OFF ON THE RIGHT FOOT IN YOUR HOME BUYING JOURNEY.
If you are a first-time homebuyer, getting professional mortgage advice is a great place to start. We specialize in the kind of education that can help get new homebuyers off to a great start! Although mortgage debt is ‘smart' debt, buying your first home is a huge financial decision and there is a lot to think about. It's one of the most important financial decisions that most Canadians will make in their lifetime.
You want to take advantage of today's low rate environment but it can be overwhelming to sort through all of the options out there. Our Mortgage Consultant will help get you the right combination of mortgage features, privileges and rate that is best matched to your needs. The right mortgage goes beyond just the rate, it is important to also consider term, refinancing penalties, prepayment options restrictions, and fees.
Determine what you can afford. Before you start looking for a home and long before you consider putting an offer on one, let us help you determine how much home you can comfortably afford. Having a realistic budget to start will bring you confidence, knowing that you are not over extending budget. Remember that home ownership involves costs beyond the monthly mortgage payment such at insurance, taxes, utility bills, home maintenance.
Be sure to talk to us about getting pre-approved, so you'll get your interest rate guaranteed for a set period, typically 90 to 120 days.
Downpayment options. Down payment is one of your most important considerations before you look to purchase your new home. If you're in the "saving up" stage of preparing for home ownership, this is a great time to meet with us so we can discuss your down payment options. In most cases you want to save five percent of the purchase price.
There are a few options to consider for first-time homebuyers who may have smaller amounts to start:
- The Home Buyers' Plan (HBP) - first-time homebuyers can withdraw individually $25,000 or $50,000 with a spouse tax-free from their RRSPs, provided they adhere to the repayment plan.
- Gifted down payment from a parent or blood relative - can be a source of funds as long as the homebuyer receives in writing that they are not required to pay the money back at any time.
- Start off small - the dream house may be priced too high, so a starter home might be the right option for a first-time homebuyer. A smaller home or maybe a house just outside of the expensive area will help get a foot in the door. The homebuyer can take advantage of the low interest rates to pay off the home quicker and use the equity from the first home to buy the dream home later.
Build a team of professionals. We'd be happy to help you build a strong away team so that all aspects of your home buying experience are efficient and professional. Your team will include a realtor, lawyer, and a home inspector.
Plan for closing costs. There are additional costs that come with buying a home so you'll need to have some extra funds set aside to cover these costs. Generally, you can expect to pay between 1.5% and 4% of the home's selling price in total closing costs. We can outline all of your closing costs so you won't be caught by surprise.
We will also provide you strategies to help you pay your mortgage off faster and shave thousands off interest costs.
There's so much to consider. Work with us today so you can get into the market and start your wealth building with smart debt! We'll help you get off on the right foot in your home buying journey.
We look forward to helping you realize your dream of homeownership!
YOUR FIRST MOVE SHOULD BE TO LOOK INTO YOUR MORTGAGE OPTIONS!
Do you want to create the perfect house that fits your lifestyle? Or does your family need more room to grow? Call us today for a free analysis of what you can afford. Your dream home may be more affordable than you think!
When you are ready to sell your home and buy a new one, your first move should be to look into your mortgage options. If you will need a bigger mortgage, your options will include bringing your mortgage with you if it is portable. You can often "blend" your current mortgage rate with the mortgage rate on the additional funds you need.
With interest rates today still hovering at historic lows, you might want to consider breaking your current mortgage and getting a new one for the total amount you need. To break your mortgage, your lender typically has the right to charge a penalty based on the greater of three months' interest or the interest rate differential (IRD), which is essentially the difference between your old rate and current rates for your remaining term.
Lenders can calculate IRD differently; you should always get the actual penalty from your lender. If you are in a term longer than five years and you have passed the fifth year, the three-month penalty applies and not the IRD so this may make breaking your mortgage more appealing.
You'll want to compare your new blend/extend rate with the rate you'd get with a new mortgage. Of course, the exact terms and conditions of your current mortgage need to be examined closely to determine if there are other factors to consider.
It's worth a professional mortgage analysis to determine which option is the most beneficial to you. There's no cost or obligation. We're up-to-date on current rates and all of the new opportunities available - from a wide range of lenders - so we can help you with all of your mortgage strategies for purchasing your next home.
ARE YOU RECOGNIZING THE INVESTMENT POTENTIAL AND LIFESTYLE BENEFITS OF A VACATION HOME?
Dreaming of the lake and relaxing afternoons on the dock or a cozy fire in your ski chalet? Or perhaps you need to expand your family's horizons with a second property while your children attend university.
The appeal of a vacation property is often as much economic as it is emotional: an investment that makes sound financial sense can also provide you and your family with a lifetime's worth of memories. Bringing this investment within reach are the excellent financing options available for Canadians purchasing vacation properties.
We can introduce you to several financing options from a wide range of lenders. There are several different routes you can take: you may want to use the equity in your principal residence to finance your vacation property or second home, or you may opt to take out a secured line of credit or second mortgage on your principal home. You could also consider financing the vacation property on its own merits. Most lenders look for a well-built property, in a good location, and with year-round access.
Not sure if a vacation or second home is within reach? Give us a call so we can help!