first-time-home-buyers

First Time Home Buyers

I'm Amina and I specialize in finding the right mortgage for First Time Home Buyers all over York Region and the GTA, as well as other areas in Ontario. I'm a licensed mortgage broker, dedicated not just to helping you qualify for a mortgage, but also ensuring that the mortgage you choose will be customized specifically to you and your family’s immediate needs. The amount of down payment for First Time Home Buyers in Canada is usually one of the biggest hurdles for people trying to qualify for a mortgage in the current economy, however, I have access to over 40 lenders in the Canadian marketplace. This being the case, I can assist you in qualifying for a mortgage no matter what your individual circumstances.

Even better than that, my mortgage brokering services come completely free of charge. How? Because I take my fee from mortgage lenders who I source the best deals from in the first place. Do I work for those lenders? No. I work for First Time Home Buyers like you. However, because I send Canadian mortgage lenders millions of dollars of new business each month, I can not only take my finding free from them, but can also offer significantly discounted products that I guarantee you won't find offered anywhere else.

 

How I Help Find The Right Mortgage For First Time Home Buyers

As a first time home buyer, the mortgage process can be complicated and confusing, especially if you don’t have the right mortgage professional on your side. However, many First Time Home Buyers don’t understand the benefits of using a mortgage professional over the bank specialist. Here are just a few of the benefits:

  • I’m a licensed Mortgage Broker – While ensuring a mortgage for you is primary, there are also other important things you must consider as a First Time Homebuyer; I am keen on assisting my clients with all of their financial needs and so I don’t just look at your mortgage needs but I look at options for life insurance, mortgage insurance, your retirement goals and your children’s education goals, just to name a few;
  • My services are free - I get paid by the lender that I source the mortgage from;
    I shop the market so you don't have to – With just one credit bureau, I can shop the market with over 40 lenders, so you don’t have to - saving you time and money;
  • I make the process simple, clear and straightforward – Why make the mortgage process more complicated?       I will walk you through the process every step of the way; I’ll gather your information and present it to the lenders that best fit your specific profile, based on your debt ratios and beacon scores;
  • I’m available on your terms - Day, evening and weekends;
  • I can offer you a wide array of services – Do you lack the downpayment or are credit challenged? Perhaps you are self-employed and can’t get a bank mortgage? As a dedicated mortgage broker, I can help you secure extra credit lines or a second mortgage;
  • Rate Protection - If rates drop before you close your mortgage, not only will you automatically get the lower rate, but even if rates go back up you have the lower rate locked in. Try finding a bank that will do that for you!
  • Constant Touch – Before, during and after your mortgage, I will keep in touch with you; whether it’s my monthly newsletter, Variable Rate updates or even planning your Mortgage Burning Party, I am dedicated to your success and ensuring the mortgage you get is the right mortgage for you and your family.

 

First Time Home Buyer Testimonial Regarding My Services:

Amina helped my wife and I to become first time home buyers and she also helped us find a solution to get out of our consumer proposal and gave us a fresh start. We are grateful for the patience she had in helping us and we will be life-long clients.

D&T Fraser
Mississauga, ONTARIO

What’s the Difference Between Pre-Qualified and Pre-Approved

As a First Time Home Buyer there are many things to keep in mind, but essentially it’s important to remember the difference between pre-qualified and pre-approved.  Pre-qualified, is what the banks typically do.  You go in and they punch a few numbers into the computer and come up with a ridiculous estimate of what you can afford. A common mistake is to trust this pre-qualification from the bank and shop for a home you cannot afford in the first place, as it has not been properly verified.

On the other hand, Pre-approved means that a good mortgage agent or broker will gather your information and assess based on the numbers, how much you can afford.  We then get you a 4-month rate hold, which keeps the rates as low as possible while you shop for a mortgage with your realtor.  If you don’t find a property in that time, we go back and get you another rate hold. This ensures that the approval is guaranteed; as long as you remain within the actual purchase price you pre-qualify for.

Downpayment Changes – What you need to know!

As of February 15, 2016 the Federal government mandates that any purchase higher than $500,000 - $1,000,000, will require a further 5% down-payment.  For example, if you are buying a property that is $650,000 it would look like this:

Purchase Price                  $650,000

$500,000 @ 5%               $25,000

$150,000 @ 10%              $15,000

Total Down-payment required would be $40,000

Purchases under $500,000 will still be eligible for 5% down.

On top of this you will still require to also have your closing costs, which are usually between 1.5% - 2.5% of the purchase price.

 

Need help saving for your down-payment? Here are some tips to help you save:

  • Create a budget and prioritize the down-payment over any other expense, including a new car, vacation or major expense;
  • Pay off your high-interest credit cards and loans first; not only will this allow you to reduce your debts but it will also help you qualify the mortgage as you will have a higher beacon score and better debt ratios;
  • Start saving 10-20% of your income.  If you have trouble saving, ask your employer to put this amount aside in a self-directed savings account or RRSP so you can take it out when needed;
  • Start living a more frugal lifestyle.  Do you go out to dinner every week or buy your lunch everyday?  Reduce your unnecessary expenses and you will see that your savings will quickly increase without giving it a second thought.
  • Finally having a savings account does not work if you are not taking advantage of a higher interest account.  We all know we won't get that at the banks so think of doing the following:
    • Open up a self-directed RRSP account.  As a first time home buyer you can use up to $25,000 towards the HBP (Home Buyers Plan).  This allows you to use it towards a purchase and pay the money back over 15 years tax free.  Click here for more info!
    • Open up a self-directed TFSA and invest in safe stocks and funds with low fees or in syndicated mortgages with no fees. Not only will your money grow but if you take it out to use for a home, you can regrow that amount again in your TFSA.  Click here for more info!

Here Are The Crucial Steps To Getting Started:

Step 1

In this first step, I find out how much you qualify for. As your Mortgage Broker, I will sit down with you and build a plan to find you the perfect mortgage that works around what you and your family want and can afford. This is known as a pre-qualification and will basically tell you the maximum property purchase price you qualify for, based on your income, assets and liabilities.

In this initial step, I will gather your documents.

Step 2

Once I have all the documents, I can proceed to getting you a pre-approval.   With a pre-approval, the lender verifies your income, assets and liabilities and in most cases your credit report has also been pulled and verified.  Getting a pre-approval letter means that you are likely to be approved for a mortgage and also states the amount for which you may be approved. Furthermore, this rate can be held for 60 – 120 days while you shop for your home.

Furthermore, getting pre-approved, lets your realtor know how much you can truly afford so they are not sourcing homes that are out of your price range – especially important for First-Time Homebuyers.

Step 3

Once you know how much mortgage you can afford, you are then able to shop for the home of your dreams. Don’t have a Realtor? I can suggest one for you. Check out my referral-partners page.

Step 4

Once you find the home of your dreams, we move to the approval stage.  If you went through the pre-approval, this is just the final step for the lender to provide the mortgage commitment. In most cases, you will have only five days to get your financing done. Thus it is especially important to have all of your paperwork, so we can meet this deadline. Furthermore, within the five days, we will order the appraisal, which will be crucial as it tells the lender and you that the purchase price you are paying for your home is within the value of the home.

Tip: Never waive financing without making sure you are approved! Another common mistake that First Time Home Buyers make is to waive financing because they are afraid of losing out on the property (happens in multiple offer situations), however if you waive financing and you are not approved, you could be liable to be sued by the seller for breach of contract.

Step 5

Gathering of all relevant documents to satisfy lender requirements and closing of the mortgage.

Step 6

Move in to your new home!

Of course, this is simplified, however as a professional mortgage broker I will work closely with you to ensure you are successful in finding the home you want within the budget you have.

First Time Home Buyer Incentives

As a First Time Homebuyer, you are eligible for some financial incentives, such as:

$750.00 Tax Credit’s For First Time Home buyers:

Through Canada’s Economic Action Plan, the Federal government has introduced a First-Time Home Buyers' Tax Credit (HBTC) to help with the purchase of a first home. This will assist First-Time Home Buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes.  The HBTC amount will apply to qualifying homes purchased after January 27, 2009, and will provide up to $750 in a Tax Credit.  For more information, click here

 

$2,000 Ontario Land Transfer Tax Discounts:

Ontario's Land Transfer Tax is a provincial tax payable by the purchaser of a property. Therefore, if you purchase a property or land you are responsible for paying Land Transfer Tax to the Province at the time the transaction closes.  First Time Home buyers receive a reduction of up to $2,000.00 on Ontario Land Transfer Tax.  Please note that there is also Toronto Land Transfer Tax payable if purchasing in Toronto “proper” however First Time Home buyers do not pay on the first $400,000 value.

 

CMHC Green Home Savings Incentives:

More than 17 percent of the energy consumed in Canada is used to run our homes. Buying an energy-efficient home or making energy-saving renovations can offer big savings. A 10% CMHC mortgage loan insurance premium refund, and a premium refund for a longer amortization period (if applicable) may be available when you use CMHC insured financing to purchase an energy-efficient home.

If you use CMHC insured financing to buy an energy-efficient home, a 10% refund on the Mortgage Loan Insurance premium, and a premium refund for a longer amortization period (if applicable) may be available.

Are you a First Time Home Buyer?

As a professional Mortgage Broker, located in Newmarket, Ontario I work with First Time Home Buyers in York Region and the GTA. I am dedicated to helping you qualify for a mortgage and also ensuring that the mortgage you choose will be customized specifically to you and your family’s immediate needs.

Mortgages are not a one-sized fits all solution - so let’s get started on finding the right First Time Home Buyer mortgage for you!