Purchase Financing

Consulting a mortgage broker offers numerous benefits when purchasing a home. Brokers provide access to a wide range of lenders and mortgage products, often securing better rates and terms. They handle paperwork, negotiate with lenders, and ensure accurate documentation. 

Additionally, brokers offer personalized advice to help you understand your options, budget effectively, and make informed decisions, making the home-buying process smoother and less stressful from pre-approval to closing.

 A mortgage pre-approval is often the first step in the home buying journey.  For those planning to purchase within the next six months, securing a rate hold certificate with your pre-approval is a wise move.  A rate certificate locks in an interest rate for a specified period, shielding you from any potential rate increases during your property search.  

If interest rates rise during your search, you can still benefit from your lower pre-approved rate. Conversely, if rates drop, you're free to take advantage of the lower rate available, regardless of the lender.

Reviewing your down payment options with a mortgage broker when purchasing a home in important for several reasons. Mortgage brokers can help you understand the specific requirements and regulations for down payments. This includes minimum down payment, which vary based on the home's purchase price, using RRSP funds under the Home Buyers' Plan, using your FHSA account or what options are available for borrowed or gifted down payment funds.

A mortgage broker can recommend the best down payment strategy and provide access to special down payment programs with lenders to reduce your monthly payments and interest cots.

Having a competent team of experienced professionals is crucial when buying a home. A mortgage broker helps secure the best financing options, a real estate agent offers market insights and negotiates deals, a lawyer manages legal aspects to protect your interests, and a home inspector identifies potential issues. 

This collective expertise ensures a smooth, informed, and successful home-buying process, giving you peace of mind.

There are additional costs that come with buying a home so you’ll need to have some extra funds set aside to cover these costs. Generally, you can expect to pay between 1.5% and 4% of the home’s selling price in total closing costs, depending on location and if you are a first time home buyer.

Your mortgage broker can outline all of your closing costs so you won’t be caught by surprise.

A mortgage broker helps you strategize your mortgage payments and pre-payment options to pay off your mortgage faster. For example, payment frequency changes, like switching to bi-weekly or weekly payments, and highlight pre-payment privileges such as lump-sum payments or increasing regular payments. 

By analyzing your financial situation and goals, a broker ensures you utilize these options effectively, reducing interest and shortening your mortgage term.