That said, you can get into a home with as little as 5% down.
You can use a combination of sources for your down payment – savings, RRSP, TFSA, FSHA or a gift from an immediate family member.
Some other important pieces of information for your first mortgage
A pre-qualification helps your mortgage provider determine approximately how much you will be able to borrow and how much you will need for down payment and closing costs. During a pre-qualification your mortgage provider won’t review your credit report or verify your financial information. They will estimate how much you might be approved for based on an overview of your finances, income, assets and debts.
A mortgage pre-approval is as close to a guarantee as you will get. A pre-approval means that a mortgage provider does some of the initial background checks in advance and commits to giving you a particular interest rate if you are fully approved for a mortgage within a specific time frame (depending on the lender).
The mortgage stress test is a test that ensures that you can afford your mortgage payments at a qualifying rate. The qualifying rate is based on either the benchmark rate of 5.25% or the rate offered by your lender plus 2% – whichever is higher.
The mortgage you ultimately qualify for will be based on the size of your down payment and your ability to afford your monthly mortgage payments.
There are some additional costs associated with closing your real estate purchase. Home inspection, land title transfer, property taxes, property transfer tax (depending on the province), provincial sales tax (if a new build), legal fees, utility hookups and moving expenses.
If you are a first-time home buyer – you deserve to work with a brokerage that will take the time to ensure you are completely informed of all your options.
Unlike banks, who are tied to their own mortgage products, we have access to all different kinds of lenders, which means more selection, more options and more savings!
