Before you browse listings, the most crucial step is to get your finances in order. This stage determines your budget and your ability to secure the best possible mortgage deal.
Take an honest look at your income and monthly expenses. How much can you realistically afford for a mortgage payment, property taxes, and utilities? Knowing this number is the first step toward confident homeownership.
Your credit score is a key metric for lenders. In Canada, a score of 680 or higher will give you access to the best rates from A-lenders (major banks), while alternative options exist for other scores. Knowing your score in advance gives you time to improve it if necessary.
This is the amount you pay upfront from your savings. While the minimum in Canada can be as low as 5%, a larger down payment can lead to better terms.
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In today’s market, a simple pre-approval isn’t enough. You need a personalized mortgage quote. This is a firm commitment from a lender on the amount they’ll lend you and the interest rate they can offer, locked in for 90-120 days.
Why is this so critical?
You Know Your Exact Budget: You can search for homes with confidence.
You’re a Serious Buyer: Sellers will prioritize your offer because your financing is secure.
You Get the Best Deal: This isn’t just about getting approved; it’s about getting a competitive quote that saves you money.
Ready to find out what you qualify for? [Get Your Free Mortgage Quote Now]
With your quote in hand, you can start searching for your dream home. But don’t just look at houses—look for deals. This can include:
Government Incentives: Programs like the First Home Savings Account (FHSA) can provide significant financial advantages.
Lender Promotions: Some lenders offer special rates or cashback deals for first-time buyers.
Broker-Exclusive Offers: As brokers, we often have access to deals that aren’t available to the public.
Once you’ve found the perfect house, your realtor will help you draft an Offer to Purchase. After your offer is accepted, a real estate lawyer prepares the documents to transfer the property title to your name. On the closing day, you get the keys to your new home!
Many people go directly to their bank, but that limits their options. Partnering with a mortgage broker like FastRates opens up a world of possibilities.
Access to Better Rates: Brokers can negotiate exclusive deals you won’t find at banks.
More Options: We compare multiple lenders, including major banks and credit unions, to find the perfect fit for you.
We Save You Time & Money: We do the research, paperwork, and negotiations so you don’t have to.
Expert Guidance: We provide personalized advice to match your unique financial goals.
The home-buying process is a marathon, not a sprint. But with a clear plan and a reliable financial partner, you will undoubtedly reach your goal.
If you’re ready to begin your journey to homeownership, don’t wait. Request a free consultation, and our experts will help you assess your options and get pre-approved on the best possible terms
The minimum down payment depends on the home’s purchase price. For homes under $500,000, the minimum is 5%. For homes between $500,000 and $999,999, you need 5% on the first $500,000 and 10% on the remaining portion. If the home costs $1 million or more, the minimum down payment is 20%.
If your down payment is less than 20% of the home’s purchase price, you are required to have mortgage loan insurance. This insurance protects the lender in case you default on your payments. While it adds a premium to your mortgage, it also allows you to buy a home with a smaller initial investment.
A mortgage pre-approval typically lasts for 90 to 120 days. This means the lender guarantees your interest rate for that period. If you don’t find a home within that timeframe, you must re-apply.
While your bank can only offer you its own products, a mortgage broker works for you, not the lenders. The key benefits include: Access to the Best Rates, More Mortgage Options, Saving Time & Money, Expert Guidance, Faster Approvals
Closing costs are the various fees you must pay on or before the closing day of your home purchase. They are separate from your down payment and typically range from 1.5% to 4% of the home’s purchase price. These can include legal fees, land transfer tax, home inspection fees, and property appraisal fees. It’s crucial to budget for these expenses so there are no surprises.
The world of mortgages can be complex, but you don’t have to navigate it alone. Request a free consultation, and a FastRates expert will be happy to provide clear answers tailored to your personal situation.
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