First Time Homebuyers Mortgage
Buying your first home is a very memorable and exciting time; but you need to work with the right team to make the process a smooth one. Part of your team should be Verico Mortgage Options Ltd.; we will work with you from day one of the pre approval till the day you take possession. There are a lot of things to think about and do when you are purchasing a new home, and worrying about the financing should not be one of them; let us handle all your concerns from day one!
How much down payment do I need?
For a standard insured mortgage, you now need 5% down payment. This down payment can be from your savings, RRSP's, a gift from a family member, a loan (as long as you can service the loan in your debts) or from a 5% Cash Back Mortgage from Verico Mortgage Options Ltd.
How difficult is it to qualify as a first time homebuyer?
If you have a steady job, decent income, a clean credit history and a down payment of 5%, it is not difficult. Even without the 5% down payment, we have cash back options that make qualifying easy.
Should I get pre approved before shopping for a home?
Yes this is must; you will want to know for sure that you qualify for a mortgage and you need to know how much of a mortgage you can get. Step one in the home buying process is always to talk to a mortgage broker from Verico Mortgage Options Ltd.!
My realtor is recommending we not put a financing clause on the offer due to the fact there are multiple offers, is this a good idea?
In a word, no. we always recommend putting a financing clause on the condition. When you are pre approved it only means the lender has reviewed your application and it seems to fit into their guidelines, however the insurers have not seen your application (and inevitably it is their decision to approve you) nor have they seen or approved the property. Always put a subject to financing clause; if you want to make your deal stronger, bump up the dollar amount of your offer.
Who is the insurer?
The insurer will be CMHC, Genworth or AIG. They insure the mortgage for the bank so if the loan goes bad the bank will get all their money back. This insurance is mandatory and it's paid by the client (added onto the mortgage, not out of pocket). Banks do often turn clients down for mortgage however it is the insurer that inevitably has the final say whether you and the property are acceptable lending risks.
How much is the CMHC insurance?
It depends on what percentage of down payment you have, how big the mortgage is, how long the amortization is and what program you qualified under. For a 5% down first time buyer it can be as low as 2.75% to as high as 6.4%.
What can I expect for out of pocket expenses if I buy a home?
You will have to put down a deposit on the property (so even if you are going in with no money down, the bank will not fund the deposit); you will have legal fees to register the mortgage, a portion of the property taxes depending on when you close and possibly a property transfer tax depending on which province you buy. A Verico mortgage broker will lay all these out for you during the pre approval process.
How long do I need for financing?
We usually ask for a week although it can happen in less than a day if everything goes smoothly. Verico mortgage brokers are the best in the business and will do their best to get you approved with the best rate mortgage as quickly as possible.
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Call one of our Mortgage Brokers today, or apply online for a Free Pre-Approval today.
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