First Time Home Buyers

Term

APR

5 yr variable 4.65

1 yr fixed 5.50

3 yr fixed 5.50

5 yr fixed 5.79

10 yr fixed 6.25

The process of buying a home is exciting, emotional and there are a number of steps to make it simpler and more straightforward. The following are our recommendations for making it painless.

What is your preference? Do you prefer branch banking or virtual banking?

Some key products to think about are No Money Down mortgages and cash back mortgages. Both are useful. If you have the down payment available that is the route to go but if not, no money down could be a good option.

A key factor is getting pre-approved.
How Much can I afford?

This is fast and painless and most of all, useful.

A pre-approval offers you three advantages:

You know the accurate house range in which you should be buying.
You lock in the rates for 120 days. This rate guarantee can prove invaluable.
You are not committed in any way shape or form. If we earn your business we would welcome that. If you choose another route, we wish you the very best.

The pre-approval is a mix of your income, your down payment, the interest rate and your credit rating.

This involves taking details such as:

Your name
Your address
Date of birth
Social Insurance Number
Where you work, how long and how much you earn
Income: is it hourly, salary or commission
Asset and Liability information
Down Payment amount and source

There are many options for making your mortgage application:

Contact us online using our web contact form here.
Give us a call at 905-388-3176 or toll free at
1-800-713-0985. We would love to discuss your options and the best mortgage solution for you.
Write us an email with your preferences and any questions you might have. We will promptly reply with tips and advice to help you along in your mortgage planning. Send your emails to advice@fairmortgagesolutions.com
Send a fax with details for what you want for your mortgage to 905-388-1737 or toll free at 1-800-713-0994
Personal meeting at a convenient location for you - your home, your work, our office etc... We won't squeeze you into our schedule - we'll make time for you and fit ourselves into yours!

Whatever you prefer. We will do our best to make it easy and simple for you.

Choose a product, term and rate that is good for you.

Talk over your situation with us, we can provide advice and options as to what you can do and what the market indicates may be a good route to go.

You want the home to be affordable.

A general ratio is if you are hourly or salaried based, your mortgage payment, property taxes and heating payment should amount to 32% or less of your gross combined income. This called your GDSR.

In addition your mortgage payment, property taxes, heating, all other debt like credit cards, student loans and car loans, should amount to no more than 40% of your gross combined income. This is your TDSR.

Every person is different, every situation is different.

If you are self employed, above doesn't apply. You must use common sense. There are excellent programs for self employed clients.

Statistically, it has been shown that if you keep within these parameters, it is generally affordable for you. Try and make yourself bulletproof.

Down Payment

Usually this ranges from 0% to 25% down for a first time home buyer. If you have been in the market for quite a while and buying up, the down payment or equity can be very large.

The down payment can come from savings, RRSP, GIC or a gift from a relative. An individual can withdraw tax free up to 20,000 from there RRSP for use on their down payment, they have up to 15 years to repay this amount. If you want a high ratio mortgage, the premium is added onto the mortgage.

A great surprise to many clients is how detailed they must be in terms of source of the down payment. CMHC have rules which must be abided by everyone.

The following CMHC/GE premiums apply to high ratio mortgages: