Mortgage Intelligence's - SunCoast Team: First Time Buyers

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First Time Home Buyer

Making the leap to home ownership

Congratulations! You’ve decided you’d like to become a homeowner. It’s a big responsibility, but one that comes with many rewards: both emotional and financial.

But there’s some emotional and financial investment that comes first. Yes, a home purchase is going to be among the biggest and most important financial decision you’ll ever make. The good news is that you’re part of a very lucky generation of homebuyers. Lending rates are probably lower for you than they would have been for your grandparents. We’ve become so accustomed to low lending rates that it’s hard to remember that homebuyers struggled with lending rates of almost 20% in the bad old days of the early 80’s!

And today, a whole range of flexible mortgage options make the leap to home ownership financially painless. What it takes is just some planning and commitment. But here’s a quick-start guide for aspiring home owners:

1. Educate yourself. You can actually start off by talking to a mortgage broker – who are generally great at “plain talk”. They can help familiarize you with the legal and real estate lingo, because, face it, those industries seem to have a language all their own. Or if you’re web-savvy, try looking up real estate or mortgage glossaries online, to help you move into a purchaser’s comfort zone. A good website for the beginner is the CMHC (Canada Mortgage and Housing Corporation). It covers the basics – and more.

2. Be aware of the importance of a good credit rating. Mortgage lenders will definitely check your credit profile and when they do, you want to be sure that everything looks great. Not sure what your credit rating even looks like… or if you even have one? Go to www.equifax.ca, which can tell you everything you need to know about what a lender might find when they check out your profile. The higher your credit score, the better financing you will receive -- amount and interest. The basics: you need to prove you know how to pay money back. That means you should always pay your bills on time and preferably in full. One or two credit cards, regularly used and paid up, can help you establish credit. A mortgage broker can offer more tips on building a good credit rating quickly.

3. The right mortgage can save you thousands of dollars. Your bank will want your mortgage of course, because it’s good business for them. But the bank represents only one lender choice. An independent mortgage broker can have access to more than 50 lenders, including most of the banks. Best of all, they don’t work for the lender; they work for you. You don’t pay anything extra for their services; the lender who gets your business pays them a commission, since that lender didn’t have to pay a staff person to stand at a wicket to get your business. Mortgage brokers are a wealth of information, and they’re usually very easy to talk to. You want someone who will take the time to understand your situation, and who doesn’t think your questions are dumb. This is an important decision; you have a right to know what it’s all about.

4. Get pre-approved. We can’t emphasize this enough. Find a mortgage broker that you trust. He or she will have the maximum number of options for you. Don’t have a down payment? That may not be a problem; there are excellent options now for homebuyers who haven’t saved up a down payment. The important thing is to look at the mortgage before the house. Your mortgage broker can help determine the amount of mortgage money that you are qualified to borrow, and you’ll ensure the right budget for things like closing costs too. A letter of pre-approval is an enormously handy document to have in your pocket before you start to view houses. And if you get in a bidding war on the home of your dreams, it’s good to know your limit, since it’s easy to be swept up in the excitement. Get pre-approved. Did we mention that?

5. Location and planning. Armed with your pre-approval, you can be practical and reasonable about how much house you can afford. Stay within your means, and focus on making the best possible home selection – not just for the investment potential, but for the quality of life you want to enjoy. For both, location will be a key consideration. Many real estate experts still agree that the best real estate values can be found by selecting the least expensive house in a good neighbourhood. You’ll enjoy and benefit from the value of the neighbourhood, without really paying too much extra for it. A desirable and stable location is the place to invest your money. Can’t afford the house of your dreams yet? Take the long view. Your dream house is in your future, but most of us have to work our way up the real estate ladder.

Remind yourself that the decision to buy a house has its emotional rewards too. A house is not just a house. It will soon become your home. Happy homebuying!

We want you to feel completely comfortable and confident about your mortgage!

The SunCoast mortgage team is here to walk you through the home buying process. We will answer all questions, discuss your needs and explain all the options available. There is nothing more exciting than buying your first home but there is so many questions that you may have. We have created a Home Buyers Guide based on the most commonly asked questions.

Before you make what is likely to be the biggest financial decision of your life, call us at 866-544-4001 or email Justin Christie or Keith Walper

To get a pre-approval or to see what you qualify for:

Apply Now

Owning your own home may be the smartest decision you can make ... and easier than you think.

Consider the Top 5 reasons to Buy vs. Rent:

#5	Experience Freedom: Home ownership will free you from the ties that bind you to a landlord, no longer will you be dependant on someone else's schedule to change or fix things in your home.
#4	Take Advantage of Today's Low interest Rates: With today's great rates, your monthly mortgage costs may even be less than the rent you're paying now!
#3	Decorate: Get 100% financing and spend your savings on things like renovating - according to your own style, not your landlord's
#2	Invest: Take comfort knowing that a portion of your monthly mortgage payment will go towards your home equity. Also, with real estate prices still on the rise, when you sell you could have a healthy capital gain (tax free!)
#1	Save money every month: Compare $1200/month rent to a $979.44/month mortgage payment on a $200,000 home with 5% down. That's a savings of $220.56 each and every month!

We have created a Home Buyers Guide that is filled with beneficial information for every person but extremely helpful for First Time Home Buyers

To request a free copy of the Home Buyers Guide please complete the form below:

Article Library

Renter to owner: Taking the plunge into home ownership

New home owners will tell you that you can’t beat the feeling of having a place to call your own: the kitchen you’ve always wanted, a garage to putter in, the flower garden that reminds you of your grandmother, or a cozy window seat that looks out on your own view.

There is a small group of Canadians who, for various reasons, prefer to rent. But a majority of Canadians dream of owning their own home. With interest rates lower than our grandparents enjoyed – combined with innovative new no-downpayment mortgages – there has never been a better time to take the plunge into home ownership.

Not sure where to begin on the home buying adventure? Set aside the issue of downpayment for a moment and consider your monthly cash flow. How much can you budget for? Consider what you are currently paying in rent and other housing fees. Look at your spending habits and ask yourself if you could comfortably pay more per month. You may, for example, look forward to cooking meals in your own home rather than dining in restaurants as often. A house purchase often entails some lifestyle changes. What about transportation, for instance: will you be moving next to the subway stop or out of town? Remember to factor in these changes as you calculate how much money will be available monthly. Finally, remember that not all that money can be spent on your mortgage payment, since you will need to allow for other costs such as utilities and property taxes. But with the historically low mortgage rates now available, your monthly mortgage dollars can go farther than ever before.

Now, let’s tackle the biggest hurdle for most would-be homeowners: the downpayment. Traditionally, Canadians have expected to save up 10% of their purchase price as a downpayment on a home – in addition to some extra savings to cover closing costs and other fees. But with today’s mortgage options, the downpayment doesn’t necessarily need to stand in the way of your home-buying dreams. If you have an RRSP, for example, you may be able to take advantage of the government’s Home Buyers Plan to come up with your downpayment. Or you may want to explore one of the innovative new mortgages that effectively eliminates the need for any downpayment at all. While these mortgages come with a higher fee, that cost is covered by the additional mortgage amount and you can get into your own home sooner than you dreamed.

And don’t forget to get advice. We can provide you with information on mortgage options from the widest spectrum of banks and other lenders. Especially if you are looking for one of the innovative new mortgages, this is the place to begin. A mortgage professional can make a realistic assessment of your financial situation and your options.

If you’re one of the Canadian renters who is dreaming of home ownership, there’s never been a better time to make those dreams a reality.

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For more information or a free consultation - Please contact Justin Christie or Keith Walper at 519-238-HOME(4663) or toll free at 1-866-544-4001.

Rates

Rates as of 12-Mar-2010
Term	Bank Posted Rates	Our Best Rates*
6mth	4.60%	3.85%
1 yr	3.65%	2.49%
2 yr	3.95%	2.95%
3 yr	4.30%	3.40%
4 yr	5.04%	3.69%
5 yr	5.39%	3.69%*
7 yr	6.60%	4.95%
10 yr	6.70%	5.20%
variable rates-ask for details
*30 day quick close special

Call Us Toll Free

866-544-4001

Mortgage Details

Pre-qualification - Having the right documents in place will speed up the process

Mortgage options - The mortgage you choose will form the foundation of you financial stability

Down payment - Homebuyers today have more choice than ever before in terms of what they can use for a down payment.

LTT refund & GST New housing rebate - Land Transfer tax refund - First time home buyers may be eligible for a land transfer tax refund. GST New Housing rebate is also available (not just for first time buyers).

RRSP Program - Home Buyers' Plan (HBP) - You can withdraw RRSP money 'tax free' provided you buy or build a qualifying home

Mortgage Types - Arranging to pay for that home is one of the most important financial decisions you will ever make

Average 5-year Mortgage rate - How do 5-year rates compare since 1981

Payment Tables

Repayment options - How you pay your mortgage has a dramatic effect on the amount of interest you pay..

Closing the deal - There are costs involved in every real estate transaction.. be prepared for all the extras..

30-35 year amortizations - extended amortizations

*Rates/product subject to purchaser/property qualification and change without notice. E&OE. OAC.

HO Address: 5770 Hurontario Street, Suite 600, Mississauga, Ontario, L5R 3G5

Mortgage Intelligence FSCO licence # 10428 | Justin Christie FSCO licence # M08001295 | Keith Walper FSCO licence # M08001748