Stratford Mortgage Broker

First Time Home Buyers

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First Time Home Buyers
Purchasing Your First Home is a very important decision and your home mortgage is the single most important financial decision that you will ever make.

You can find out what you qualify for by applying online. I will advise you on the amount of mortgage you qualify for, what interest rate you can expect and what you will need for a down payment. If everything looks good I can then lock in your interest rate for up to 120 days while you shop for a home.

If you have a strong credit history with a credit score of at least 600>, typically you have been able to purchase a home with as little as 5% down with a maximum amortization of 25 years. However the new government rules have brought about alot of changes in the industry this year making it very difficult for people to qualify. Most people need higher credit credit scores and more income to qualify for the same amount they would have the year before on the same income. With the new "Stress Test" we have to qualify anyone applying for a mortgage at the Bench Mark rate which is currently 5.34% or 2% above contract rate, the higher of the two.

The minimum down payment required is 5% but the amount you will have to put down will depend on your credit history, score, income and what monthly debts you are paying. In addition to down payment you will need to pay closing costs. We estimate those to be around 1.5% of the purchase price. Anyone with less than 20% must qualify for Mortgage default insurance through CMHC, Genworth or CG. The premium is added to the mortgage and included in your mortgage loan amount and monthly payments. The more you put down the less the insurance premium will be.

Sources of down payment that can be accepted
- Savings, RRSPs, TFSA, registered & unregistered investments
- Gifted Down Payment *Must be gifted from an immediate family member
- Borrowed Down Payment *certain conditions apply

The First Time Home Buyer Credit
The First Time home buyer's tax credit allows a maximum Land Transfer Tax refund to $4000.

Cash Back Mortgages
We still offer cash back mortgages up to 3%. This cannot be used towards your down payment as you still must have the minimum down payment of 5%.

Choosing a Realtor
An important part of the process is choosing an experienced Realtor to help with your search and negotiate your offer. I own a Real Estate Brokerage and can refer you to a reputable realtor to assist you if you are not already working with someone.

What you need to do once you have made an offer
Its important to get the required documents into me as soon as possible. This will speed up the approval process. An approval can take anywhere from a day to several days and there will be conditions to that approval. Anyone putting more than 20% down will be required to get an appraisal as apart of their conditions. Please make sure your realtor puts in enough days for financing so you have time to get everything in order. 7-10 business days is generally a good idea as the Banks, Mortgage Companies and Appraisers do get busy which makes turn-around times slower.

Here is a general list of what to expect you will need to provide.

*Accepted offer - purchase and sale agreement
*Realtor MLS Listing
*Proof of down payment (3 months bank statements/Gift letter with deposit slip/RRSP) *Name on them
*Proof of closing costs (1.5% of purchase price)
*Employment Letter(s)
*Recent Pay Stub(s)
*Last two years Notice of Tax Assessments

Self Employed - 2 years Tax assessments, 2 years T1 Generals, Business license, Incorporation Documents, Invoices -6-12 months bank statements

Past Bankruptcies/Consumer Proposals- Full bankruptcy/Consumer Proposal documents and discharge, explanation on circumstances

Separated or divorced - Full separation agreement including court orders. *note that to close a mortgage you must be able to provide a full separation agreement to show equalization payment if applicable, spousal support and/or child support. Under certain circumstances an exception may be granted to close the mortgage with a Statutory Declaration on closing in lieu of the full separation agreement.

QUICK LINKS to apply for a Mortgage ONLINE

PCS or Laptops
Mobile Application
Downloadable PDF Application

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Toll Free: (866) 592-0516 Fax: (866) 407-5702 Mailing Address: 321-356 Ontario Street, Stratford, ON N5A 7X6