If you are thinking about purchasing a home we highly recommend that you get pre-approved for the mortgage. Not only does this confirm what amount you will qualify for, it also guarantees you a mortgage rate for 120 days. If the rates go up you are protected, if they drop even lower you’ll get the lower rate. You can’t lose; call today to get a pre-approved mortgage with no obligations…613-563-3447.
Hi-Ratio Mortgages
Any mortgage greater than 80% of the purchase price. The maximum you can borrow is 95% of the purchase price for a principal residence. These mortgages are insured by either CMHC or Genworth Canada.
For more information on the premiums and their guidelines you can go to their web page for the details.
https://www.cmhc-schl.gc.ca/en/co/moloin
http://genworth.ca/en/lenders/premium-rate-table.aspx
Or call us & we can give you the information over the phone. Call today at 613-563-3447
Conventional Mortgages
Any mortgage less than 80% of the purchase price. You will not be charged any hi-ratio premiums because you have a down payment of 20% or more. The property can be principal residence, rental properties or a second home. For more details on rental properties please see, Rental Property Mortgages.
Qualifying for Your Mortgage
We will go over this in detail when you talk to us, as all lenders have their own ways of qualifying clients. Besides having your down payment, you will need your closing costs for legal fees, disbursements etc. Use 1.5% of the house value as this is the estimated percentage that the lenders will use. For a $300,000.00 home this means you need another $4,500.00 in savings along with your down payment to qualify.
You need to verify that you have these amounts saved or gifted to you by immediate family members.
You will need to verify that your income is enough to qualify. Lenders basically will allow anywhere from 35%-39% of your gross income(s) for your mortgage and property tax payments as well as heating costs. This is called Gross Debt Servicing, (GDS). As for other payments, (credit cards, car loan, etc.), lenders will expect that number to be in the 42%-44% range, this is called the Total Debt Servicing or (TDS)
Call today to get started 613-563-3447
Secondary Homes
Prime rates, terms and conditions are applicable for a second home with the following guidelines; an adult trying to buy a home for your elderly parents; or a parent helping to buy a home for an adult child attending a post-secondary educational facility.
Call our office to find out all the details on whatever property you are deciding to purchase. Call today 613-563-3447.
