First Time Home Buyer Mortgage Newmarket, ON
What is the minimum amount of money need to buy a home?In most locations, you only require 5% of the purchase price as your down payment. In some instances, you may qualify to purchase a home with NO MONEY DOWN! This helps to ensure you are dedicated to making your mortgage payments and keeping your home.
How can you determine how much of a mortgage you qualify for?Several factors are involved in determining your purchase potential or how much you qualify for. To get a fast and accurate estimate please contact us.
How can a Cash Back Mortgage assist a first time homebuyer?Institutions have developed a product called the "Cash back Mortgage" so buyer with the down payment but no cash to cover closing costs can still purchase a home. As long as you have the minimum down payment required, institutions are now giving you a cash reward to assist you in paying for your closing costs. You can also use this money to purchase furniture or appliances.
Should you get a pre-approved mortgage?Definitely. Obtaining a mortgage pre-approval is an important initial step in securing a mortgage to buy a home. The lenders will analyze your current income, debt situation and credit history in order to qualify you for a maximum loan amount. This gives a clear picture of your financial parameters and an idea of your purchase price range.
How can you strengthen your bargaining with the vendor of the home you wish to buy?Obtain a pre-approved mortgage. There are three people who will benefit from your pre-approval: YOU, YOUR AGENT, and THE SELLER OF THE HOME YOU WANT TO BUY. Do you want to strengthen your bargaining position with the seller? Get pre-approved. Do you want your offer to stand out in a case of multiple offers for the same house? Get pre-approved.
Look at it from the seller's perspective. If you had 2 offers on the table for your home, one from a fully approved buyer and the other from a buyer that hasn't made any effort to get pre-approved. To which offer would you devote the most attention?
Is a GIFT an acceptable source of your down payment?
Yes. Most institutions will accept a gift down payment if the following criteria are met. The individual(s) granting the gift:
- must be an immediate relative or purchaser
- must be willing (at the institutions discretion) to provide written proof of the source of the gift and photocopy of the gift cheque.
- must be willing to sign a standard gift letter stating the funds are non-repayable
- must be willing to give proceeds to the purchaser at least two weeks in advance of the closing date.