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FINANCING

Mortgage 101

Qualifying for a mortgage

Your Royal LePage agent can help you become pre-approved for a mortgage before you start shopping for a home. It's easy, and you will avoid possible disapointments down the road if you fall in love with a home, then find out you can not afford it. Plus, once you do find the perfect home, it will mean you can make an offer immediately.

Here is how mortgage approval works: The amount of money that you qualify for, plus the amount of cash that you can put down equals the amount of money you can spend on a home. Most lending institutions will not allow more than about 30% of your income to support a mortgage. If you have other debts, they usually wont allow your debts and your mortgage to exceed 40% of your income.

Finlalizing your mortgage:

Once you have found the home you want to buy, you will need to  finalize your financing. You will need to provide your lender with the following documents (your agent can send these documents to your banker or motgage specialist directly.)

  • A copy of the feature sheet for the property
  • A copy of the contract of purchase and sale.
  • Documents to confirm employment, income and a source of pre-approval.
  • If you have a pre-approved mortgage, its a simple matter of finalizing details and having CHMC or Genworth confirming approval if necessary.

Here is a reference to everything you need to know about making an offer on a property.

1. PRICE

Depends on the market and the buyers, but generally, the price offered is different from the asking price.

2. DEPOSIT

Shows the buyers good faith and will be applied against the purchase price of the home when the sale closes. Your agent can advise you on a suitable amount to offer.

3. TERMS

Includes the total price the buyer is offering as well as the financing details. The buyer may be arranging his/her own financing.

4. CONDITIONS

These may include "subject to home inspection" or "subject to home insurance" or "subject to financing".

5. INCLUSIONS AND EXCLUSIONS

These may include appliances and certain fixtures or decorative items, such as window coverings or light fixtures.

6. CLOSING/POSSESSION DATE (OR COMPLETION DATE)

Usually, the day the title of the property is transferred to the buyer and funds are received by the seller, unless otherwise specified on the contract of purchase and sale.

CURRENT MORTGAGE RATES - SCOTIABANK

Click on the above link to see the most up to date mortgage rates!

CURRENT MORTGAGE RATES - RBC

Click on the above link to see the most up to date mortgage rates!