First Time Home Buyer?
Are you a first time home buyer? There’s great pride in owning your first home. A home purchase will most likely be the largest financial transaction most Canadians will make their life time. It is a challenging step but a home ownership provides you many benefits.
The numerous amount of mortgage products along with a many terms and options can be overwhelming for many of first time home buyers. And breaking a mortgage can be sometimes very costly if something should change.
What can you afford?
When you think about purchasing your first home, there are numerous things to think about. How many rooms, the neighbourhood, and your commute to and from work among other things.
There are many lenders and mortgage products with different rates and qualification requirements. As a result, this might be an overwhelming thought. Let us take the guesswork out of the equation and use our expertise to your benefit.
Our Sunlite Mortgage agents have the experience required to assist you with getting a pre-approval to applying for your home. We will do the shopping and negotiating to get the best mortgage rate for you at no cost or obligation.
Together we will identify what lender has the mortgage product that is right for you. Once we find out how much you can afford, we will protect your rate up to 120 days.
High Ratio or Conventional Mortgage?
The purchase price is essential when it comes to down payment. All mortgage applications require at least a 5% down payment of the purchase price. Between 5% and 19.99% of the purchase price will have a high ratio mortgage and will require mortgage default insurance. Your mortgage cannot be amortized for more than 25 years.
With at least a 20% down payment of the purchase price your conventional mortgage will not require the mortgage default insurance. Therefore this could be a considerable savings.
The terms of your mortgage can be 1 to 10 years, with amortization periods up to 30 years. Most mortgages come with the flexible repayment options, including the option of paying down a lump sum of up to 20% of your principal each year so you can be debt-free faster.
Assess Other Life Priorities:
Before you select your mortgage term consider what could change in the short and long term. Which can include: job relocation, health of a family member or anything that could affect your affordability and having to break the mortgage early. Talk to a Sunlite Mortgage agent for advice on how you could be affected.
In addition to the mortgage cost you will also have to be prepared for the land transfer taxes, legal fees. There may or may not be some waivers on some or all of the land transfer tax if you are considered a first time home buyer. Home ownership comes with additional costs that does need considering so you should create a monthly budget to see if you can absorb the additional cost -utility bills, property taxes, improvement expenses and unexpected repairs.
Our Sunlite Mortgage agents will walk you through the choices available and help you identify the most suitable mortgage product to your current situation while looking at your goals. Call a Sunlite Mortgage agent today at 1.877.38LOANS and we will be happy to help you with a mortgage!