Purchasing a home is a very important decision and your home mortgage is the single most important financial decision that you will ever make. Simplifying the process is what we do best. We will explain your options and recommend financing solutions to get your first home mortgage approved at the lowest rate and terms for you. We work with the major Canadian mortgage banks and finance companies on a daily basis and we know their mortgage products and mortgage terms.

There are 7 Steps in the process of becoming a home owner
1. Pre-approval
2. Mortgage application is prepared
3. Lender review of application
4. The commitment Letter is prepared
5. Commitment letter signed and conditions fulfilled
6. Mortgage documents prepared
7. Lender instructs lawyer and Mortgage Transaction is complete (closing)

A High Ratio Mortgage is a mortgage that is for more than 75% LTV (Loan to Value)
Mortgages for 75% and more are required to have mortgage insurance on the loan. The majority of the time the insurance is provided by CMHC (Canada Mortgage and Housing Corporation or GE (GE Mortgage Insurance Canada, now Genworth). You pay an insurance premium up to 7.3% on top of your mortgage amount and the bank or finance company has the assurance that if you default the mortgage will be covered by the insurance policy.

A Conventional Mortgage is a mortgage for less than 75% LTV (Loan to Value. These mortgages don't generally need to be insured, although some lenders provide their own insurance and require you to pay an insurance premium on top of the mortgage amount, in order to protect themselves. A conventional mortgage can be used for those that have 25% or more as a down payment.ank or finance company has the assurance that if you default the mortgage will be covered by the insurance policy.

Qualifying for a mortgage, what lenders look at - The 5 C's
1. Character - Employment reliability and overall risk
2. Capital - Available financial resources; assets and liabilities
3. Capacity - Ability to pay (GDS and TDS calculations)
4. Collateral - Condition of Property to be mortgaged
5. Credit - Credit score and payment history (Understanding Credit)

Your credit score is an important indicator of your creditworthiness. The higher your score the better chance you have at getting credit extended you. While many lenders use bureau scores to help them make lending decisions, they also take other aspects into consideration. Lenders will use your credit score to determine if you are likely to pay your bills and also help them place you with the appropriate repayment plan. For example if you have claimed bankruptcy in the past they might place you at a significantly higher interest rate.

First Time Home Buyers - Resources and Information

Stratford, Ontario Real Estate. Home Buyers and Sellers Services.
Buying or selling a home in Stratford? Call your Stratford Sales Representative today.

CMHC Home Buyers Guide
Step by step consumer guide and workbook for first time home buyers

First Time Home Buyers Plan
Home Buying Plan that allows you to withdraw up to $20,000 from your registered retirement savings plan (RRSPs)

New Housing GST Rebate
You may Qualify to claim the new housing rebate for part of the GST/HST you pay on the purchase price or cost of building your house...
Home Buyer Warranty
Protection for Ontario's New Home Buyer
First Canadian Title - Title Insurance
Home Owners - Don't Become a Victim of Real Estate Fraud

Home Inspections
Since buying a home is such a big investment, you should get a home inspection done.
Property Assessment
Municipal Property Assessment Corporation