Posts Tagged ‘first time homebuyer’
Mortgage Timeline – What you need to know
How much time do I need to complete my mortgage? One of the biggest things that most of my clients do not realize is that it takes time to get a mortgage. Contrary to to what some people believe (you know who you are) you can not walk into a bank on a Tuesday and expect to have a mortgage on Wednesday. There is a certain amount of due diligence the lender wants to to do on you and the property.....and this takes TIME. I'm going to lay out the steps and associated timeline for a mortgage below in the hopes that the small percentage of society that calls me up every week looking to fund a mortgage in 2 days will see it and take it into consideration the next time they need a mortgage. I am going to lay out the steps for purchasing a house, but it will also be approximate for refinances and switches. And of course always get your mortgage pre-approval before you go house hunting Step 1 - Approval (time to complete: 1-2 days) Once you have an accepted offer make sure ...
Using a Buyer’s Agent
Are you using your own Toronto Realtor to purchase your property? Many Toronto First Time Homebuyers can be tempted to use the seller's real estate agent when purchasing their first home. They think they are going to save money because the Realtor will usually reduce the total commission when they are representing both parties in the deal.....but do they really end up saving? Does the seller's agent really have the buyer's best interests in mind? They have been hired by the seller to get the most money as possible for their home. In turn the buyer expects the Realtor to get them the home for the least amount of money. Do you see the conflict? Most Realtors are very honest and do their best to make sure both parties win in the deal, but at the same time, there is still the conflict between selling the property for the most money and buying it for the least. I recommend to all my clients that they should always use their own buyer's representative. This way you can be ...
5 Hotspots for First Time Homebuyers in The GTA
Yesterday, I attended a conference held by one of the mortgage industry's governing bodies, the Canadian Association of Accredited Mortgage Professionals (CAAMP). There were several sessions throughout the day on subjects from Social Media Marketing to the Canadian mortgage securitization industry. One of the most informative sessions in my opinion was the talk CMHC economist Shaun Hildebrand gave on the housing market in the GTA. I took away quite a bit of information from his presentation and my next few blog posts will cover the key points. So where are the top 5 affordable neighbourhoods for first time home buyers in Toronto (GTA)? As you can imagine, the central corridor of Toronto is the most expensive and probably out of reach for most first time home buyers. However there are a few areas in the "C's" that Shaun felt were still fairly priced and accessible to most. Those areas were C7 and C15. They are a little further north, but still within an easy commute via transit. Surprisingly there is still some opportunity in C1 for first time buyers in the condo developments going up.
The ABC’s of Mortgage Insurance
One of the biggest roadblocks for first time homebuyers is saving the downpayment. With the burdens of paying rent, student loans and other expenses it is not realistic to expect you can save 20% of a home's purchase price for your downpayment. What is Mortgage Loan Insurance? Mortgage Loan Insurance is just that — insurance from a trusted third party, which protects lenders against default on a mortgage loan by a homeowner. In Canada, Mortgage Loan Insurance is generally required whenever a homebuyer has less than 20% of the purchase price available as a down payment. Because the lender is protected, they are able to offer mortgage financing even if you have a smaller down payment, at a rate of interest that is comparable to the lower rates typicallyreserved for homebuyers with a larger down payment. To obtain Mortgage Loan Insurance, an insurance premium must be paid based on the total amount of the loan (the purchase price minus the down payment). This premium can be paid in a lump sum, or added to your mortgage and included in your monthly payments. The latter is normally the case. How Much Does it Cost? In general, the larger your down payment, the lower your premiums will ...
