So, you are looking to
Purchase!
Embarking on the path to homeownership is an exciting venture, filled with opportunities and key decisions.
At a Glance
Understanding the Basics
Minimum Down Payment
The starting point of your home-buying journey is understanding down payments. In Canada, the minimum down payment varies based on the purchase price of the home:
- For homes less than $500,000, the minimum down payment is 5%.
- For homes priced between $500,000 and $999,999, it’s 5% of the first $500,000, plus 10% of any amount above $500,000.
- For homes $1 million or more, the minimum down payment is 20%.
High-Ratio Mortgages And Default Insurance
If your down payment is less than 20% of the purchase price, your mortgage is considered high-ratio and must be insured against default. This insurance is provided by organizations like CMHC (Canada Mortgage and Housing Corporation), Sagen, or Canada Guaranty, protecting the lender in case of default. The premium for this insurance can be paid upfront or added to your mortgage amount.
The Home Buying Process
The first step is getting pre-approved for a mortgage. This process involves providing financial information and documents to support, we will then give you an estimate of the mortgage amount you qualify for. A pre-approval helps you understand your budget and shows sellers you’re a serious buyer.
With your pre-approval in hand, you can confidently start shopping for a home. Consider factors like location, size, amenities, and your long-term needs as you search for the perfect property.
Once you’ve found a home that meets your criteria, it’s time to put in an offer. This legal agreement specifies the price you’re willing to pay, along with any conditions (such as a home inspection, financing and insurablilty). If the seller agrees to your terms, the offer becomes a binding contract.
Now that you have a live deal (accepted offer), it is time for us to go in for full approval. This typically takes a couple of days. Once the approval is given and the documents are reviewed and approved, you will sign off the details of the mortgage commitment with us. Once this is completed you now have a firm contract meaning you are buying a home!
Ready to buy your home?
Why Choose us for Your Home Purchase?
We understand that buying a home is one of the most significant purchases you’ll make. Our team is dedicated to providing personalized guidance, from understanding your mortgage options to navigating the home-buying process. We strive to make your journey to homeownership as smooth and successful as possible. We will also ensure we take care of you after closing, so that you will be kept up to date with any changes going on in the market place.
Ready to Start Your Home Buying Adventure?
Your dream home awaits, and we’re here to help every step of the way. Contact us today to begin your home-buying journey with confidence.