First Time Buyers in Canada

Being first time buyers in Canada is an exciting time; it can also be a stressful time if you are not working with the right team. Part of your team should be a Verico mortgage broker; we will start with you at the pre approval stage and work with you right till the day you take possession. There are a lot of things to think about and do when you are purchasing a new home, and worrying about the financing should not be one of them; let us handle all your mortgage concerns from day one!

How much down payment do I need?: For a standard mortgage, you need 5% down payment. This down payment can be from your savings, RRSP's, a gift from a family member, a loan (as long as you can service the loan in your debts) or from a 5% Cash Back Mortgage.
How difficult is it to qualify as a first time buyer in Canada?: If you have a steady job, decent income, a clean credit history and a down payment of 5%, it is not difficult. If you are looking for a 5% Cash Back Mortgage your credit has to be clean.
Should I get pre approved before shopping for a home?: Yes this is really important for a couple of reasons. First off, you will want to know for sure that you can get a mortgage and secondly you will want to know how much of a mortgage you can get. Step one for our first time buyers in Canada is always to talk to us first!
My realtor says that there could be multiple offers on the property I want and I shouldn't put a financing clause on the offer, is this okay?: No, always have a subject to financing clause. You are only pre approved, the insurer still hasn't seen your deal nor have they seen the property. They may accept you but not the property you are wanting to buy.
Who is the insurer?: The insurer is CMHC, Genworth or Canada Guaranty. They insure the mortgage for the bank so if the loan goes bad the bank will get all their money back. This insurance is mandatory and it's paid by the client (added onto the mortgage, not out of pocket). The insurer has the final say whether you and the property are acceptable lending risks.
How much is the CMHC insurance?: It depends on how much you put down on the property, how big the mortgage is, how long the amortization is and what program you qualified under. For a 5% down first time buyer in Canada it is usually between 2.75% - 3.10%.
What can I expect for out of pocket expenses if I buy a home?: You will have to put down a deposit on the property (so even if you are going in with no money down, the bank will not fund the deposit); you will have legal fees, property taxes and possibly a property transfer tax depending on where you buy. A mortgage broker will lay all these out for you during the pre approval stage.
How long do I need for financing?: We usually ask for a week although it can happen in less than a day if everything goes smoothly. Our mortgage brokers are the best in the business and will do their best to get you approved with the lowest mortgage rate as quickly as possible.