Guidance For First Time Home Buyers

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Guidance For First Time Home Buyers
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• If youre considering purchasing your first home,
  you probably have a lot of questions about the
  mortgage process and may even be confused about
  some aspects of it. To help you make informed
  decisions as you head towards one of the biggest
  financial commitments of your life, here are a
  few guidelines and pointers
• What are some of the words and phrases you might
  hear?
• The term this refers to the amount of time that
  your mortgage rate is secured for usually 5
  years. In general, the shorter the term, the
  lower the rate, and when the term ends you are
  obliged to renew a term at the new market rate.

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• The rate this can be either fixed, or variable,
  with the latter often being lower, but riskier.
  Variable rates can go up and down according to
  the rate set by the Bank of Canada and can lead
  to monthly payments that go up each month. A
  fixed rate, on the other hand, becomes locked in
  for the full term of the mortgage.
• Down payment For a home costing less than
  500,000, the minimum down payment is 5, with
  10 on whats left. If you make a down payment
  that totals less than 20, then youll need to
  purchase CMHC insurance. If you make a down
  payment of more than 20, then you dont need
  that insurance and rates are quoted based upon
  your specific application.

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• Payment frequency How often you make regular
  payments towards the property youve just bought,
  and how much those payments are, depend upon your
  payment frequency. There are 6 mortgage options
  when it comes to making payments monthly,
  semi-monthly, bi-weekly, accelerated bi-weekly
  and accelerated weekly. A mortgage that you want
  to pay off as quickly as possible, would be best
  suited to an accelerated option.
• What else might you need to know?
• Taking into consideration your gross income
  which is the amount of money that you earn before
  taxes or other deductions are taken out most
  lenders will require that your housing costs
  (property taxes, mortgage payments etc) total
  less than 39 of that.

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• Any other monthly debts that you might pay (which
  includes your new mortgage), must also total less
  than 44 of your gross income.
• Unfortunately, the price that youve paid for
  your first home, is not inclusive of the cost of
  such things as home inspections, expenses related
  to moving, utility connections, land transfer
  taxes and lawyer fees. Most lenders will like you
  to have at least 1.5 of the purchase price in
  extra savings, to ensure that you can cover these
  costs.

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• Can a mortgage broker help you get the best
  rates?
• Certainly. The advantage of working with a
  mortgage broker is that they can do all the
  legwork for you, including searching among
  lenders for the best rates, and then helping you
  to fully understand what youre signing up for.
  Your broker assesses your current financial
  circumstances and bases their search upon this
  information, meaning that youll never sign up
  for anything that you cant afford.
• For more detailed information about the property
  buying process and all the latest mortgage
  information, contact your local, trusted mortgage
  broker today.

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• Mortgage-broker-Calgary is your best resource for
  finding a mortgage for your property. Luke Wile,
  is the best calgary mortgage broker and is proud
  to serve clients from across Canada, while being
  centered in Calgary, Alberta. Luke is proud to
  serve his clients with a personalized approach to
  finding his clients the best and lowest Canadian
  interest rates and terms offered by the major
  banks and private lending institutions. If you
  are looking for an independent mortgage broker in
  Calgary, with Luke Wile you can get fast and
  personal expertise for your mortgage!