Homebuyer Guide(2)
- 1. Your Name Mortgage Professional Tel: 905-667-4443 Fax: 905-667-4443 Email: cgreen@dominionlending.ca Website: www.carolingreen.com Homebuyer Guide Dominion Lending Centres <<ENTER YOUR FRANCHISE NAME HERE>> <<ENTER YOUR FRANCHISE ADDRESS HERE>>
- 2. Get a Pre-Approval A pre-approved mortgage puts your financing in place before you make an offer on a home. With a pre-approved mortgage you'll be able to make a firm offer for the home of your choice. A pre-approval can hold your rate for up to 120 days on fixed terms – guaranteeing you the best rate possible!
- 3. This program is designed for those who don't have 20% for the down payment. The 5% down program is for principle residences only (cannot be rental property). Under the 5% down payment program, borrowers must provide proof of down payment plus 1.5% of the purchase price for closing costs along with a 90 day history of down payment. Borrowers can select from a wide variety of payment terms! Financing for as little as 5% down 5% Down Program
- 4. Some of our lenders offer a "0" down mortgage. There is an insurance fee added to the mortgage amount that has to be paid to the lender who self-insures the mortgage. Home must be principle residence only – no rental properties allowed under this program. Buyers must have a good credit rating. Zero Down Program Under the Zero down payment program, buyers must take a 5 year term at posted rates, or a longer term which may be discounted partially. Buyers must qualify on the term they selected and qualify on their own income.
- 5. There are many programs to make it easier for self employed applicants with unverifiable income, to qualify for a mortgage with a low down payment. Purchasers must have a minimum of 5% down, and must be able to verify that it is from their own resources. G.E. Programs for Self-Employed & Commissioned Sales Borrowers Self Employed Program Purchasers must be able to demonstrate that they have been self-employed for a minimum of 2 years. Self employed purchasers must be able to provide at least the most recent tax years Income Tax Notice of Assessment confirming that they have filed income tax returns and have no personal income taxes arrears owing. Self-employed purchasers must have a very good credit rating. Minimum credit scores apply for different down payment scenarios.
- 6. RRSP Homebuyers’ Plan For First Time Buyers RRSP Program – First Time Buyers Maximum $20,000 tax free withdrawal for each participant from his/her own RRSP. Must be first time buyer – not owned a home that has been used as a principle residence within the last 5 years. Must intend to occupy home as principle residence within 1 year. Minimum repayment schedule is 15 equal annual installments. This schedule can be accelerated, starting within the first two years after the withdrawal is made. The funds to be withdrawn must have been invested into the RRSP for a minimum of 90 days prior to withdrawal.
- 7. How Much Can You Borrow? Know Your Buying Power! Wouldn’t it be nice to make an offer on a home with the negotiating power and confidence of knowing that financing is in place? A Dominion Lending Centres mortgage professional can calculate how much you can borrow and get you pre-approved over the phone. That pre-approval is good for up to 120 days, giving you the flexibility to search for a home and make a bona-fide offer!
- 8. Additional costs involved when financing the purchase of a home, over and above the minimum down payment, include: Survey, Tax Adjustment, Interest Adjustment , & Property Transfer Tax fees may also be applicable. Closing Costs DESCRIPTION AMOUNT Appraisal $250 Home Inspection (approximate) $300 Legal Fees (approximate) $900 TOTAL: $1450
- 9. A credit score is a rating used by a lender to help determine whether you qualify for a particular credit card, loan, or service. Based on information in your credit file, the credit reporting company analyzes your information using a complex mathematical model to yield your credit score. Most credit scores estimate the risk a company incurs by lending you money or providing you with a service - specifically, the likelihood that you'll fail to make payments in the next two to three years. The higher the score, the less risk you represent. Your score is calculated by a mathematical equation that evaluates many types of information found in the credit file. What is a Credit Score?
- 10. Factors That Affect a Credit Score What is a Credit Score? PAST PAYMENT PERFORMANCE – 35% The fewer late payments, judgments, liens or collections the better. The more recent late payments worsen your credit score. CREDIT UTILIZATION – 30% Low balances on several cards is worse than high balances on a few cards. Balance should be at or below 30% of your available credit. CREDIT HISTORY – 15% The longer that accounts have been open and in good standing, the better. Avoid ‘credit surfing.’ Opening new accounts and closing others will negatively impact a score. TYPES OF CREDIT IN USE – 10% Finance company accounts score lower than traditional banking or retail accounts. Deferred payment options funded by finance companies impact the score accordingly. INQUIRIES – 10% Looking for new credit over a short period of time can be indicative of higher risk. Promotional or administrative inquiries (i.e. credit grantor updates) will show on the report but do not affect the credit score.
- 11. Contact Call a Dominion Lending Centres Mortgage Professional today! MORTGAGE PRODUCTS Fixed Terms Open and Closed Terms Variable Rate Mortgages First Time Buyers Program Conventional Financing High Ratio Mortgages Self Employment Programs Not So Perfect Credit EVEN MORE PRODUCTS! Refinancing Second & Third Mortgages Investment Properties Vacation Properties Home Equity Lines of Credit Interest Only Short Term Loans Private Financing