#Insurance Provider: Once you have confirmed the purchase of your home, you will need to purchase home insurance in order for the home to close. Partnering with a good insurance provider can make all the difference and ensure you receive the right coverage for your contents and space!
Your Mortgage lender will lost likely have this as a condition, and your lawyer will ask for your insurance binder

Once you find your dream home and secure financing, you will need the expertise of a lawyer/notary to draw up the Mortgage documents and register them for you. This is the last step in the home buying process, but it is vital that it is handled with care.

Pre-qualification with a Mortgage Professional helps verify your budget and allows your real estate agent to find the best home in your price range.
Quick Tip: Don’t forget about the closing costs! These range from 1 to 4% of the purchase price and should be factored into your budget.

To have the best success with your mortgage, it is recommended that you get pre-approved! This can be done through your Mortgage Professional to ensure that you get the best mortgage product FOR YOU, from the best rate to the best term agreement.

When it comes to Mortgages, there can be a lot to know! Do you go with a fixed-rate Mortgage or a variable-rate? What are the terms? What are the penalties? Which is the best payment frequency? With so many questions and so many lender options, it can be hard to find the best solution for you.
Reach out to know what is the best option that suites your unique needs!

SOURCES OF DOWN PAYMENT

The down payment on your home could come from your own savings such as a savings account or RRSPs. Thanks to the federal government’s Home Buyers’ Plan, potential first-time home owners are able to leverage up to $35,000 of your RRSP savings ($70,000 for a couple) to help finance the down payment. A gift of a down payment from an immediate relative is also acceptable.

Quick Tip: If your down payment comes from TFSA or RRSP, the bank will want 90 days of statements to ensure the funds are accounted for. Gifted funds rarely require 90 days of proof.

It is always a good idea to check with a Mortgage Professional for qualifying criteria and availability to ensure your source of down payment is eligible.

Your down payment is the amount of money you need to put down on your new home. Once you have determined your budget, you will have an accurate idea of the final cost of the home you can afford and what you will be intending to spend. This will allow you to estimate your down payment and start saving!

Most First Time Home Buyers are aware of down payment costs, but are not aware of closing costs. These are costs that go towards your legal fees, title insurance, and a few other costs that amount to anywhere between 1-4% of the purchase price of your new home.
It is worth noting that when applying for a Mortgage, most lenders require that you show proof of at least 1.5% of the purchase price, even though you might end up paying less than that amount!

For example, 1.5% of a $500,000 home is $7,500. This is what the lender would want to see as closing costs over and above the down payment funds. You might end up paying a total of $5,000 in closing costs, yet the lender would still need to see $7,500 as proof of closing costs.

When talking budget, it is important to consider the purchase price budget, as well as your cash flow budget. Being house rich and cash poor makes for a no-fun home! The home price based on your cash flow budget may be dramatically different than the budget home price you qualify for.

The benefit of a budget is two-fold. Not only does it help you to understand your purchase price range and help you to find an affordable home, but it can also help you to see any gaps in your budget or opportunities for future savings. This will be instrumental when you become responsible for mortgage payments.

To help determine your budget, I suggest clicking here to download My Mortgage Toolbox app. This handy, consumer-friendly tool will help you determine your mortgage payments, affordability, income required to qualify and even the closing costs!