9 Steps to Buying A Home - Buyer's Guide

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Section 1. at a glance 1 What is the minimum down payment required to purchase a home? The minimum down payment required to purchase a home is 5% of the purchase price (see also p. 4). 3 What’s classified as income? Employment income, seasonal income, overtime, AISH and pension income, child tax credit (see also p. 2 and 3) 5 How is the amount of mortgage I qualify for determined? This depends on your income and the amount of debt you are carrying (p. 5). 2 What can I use for a down payment? The down payment is usually from your own resources (e. g. savings, sale of another property), but can also come from alternate credit sources (e. g. a loan) if certain criteria are met (see also p. 4). 4 What do I need to consider if I’m self-employed? You can still qualify for a mortgage, but you will need to provide proof of a consistent income (p. 2). Additionally, it’s possible that you will be asked to provide a higher down payment (see also p. 12). 6 How do I calculate my GDSR or my TDSR? Explanations and calculation examples can be found on page 5. 7 What can I do if my debt service ratios are too high? Some of your options include looking for homes in a lower price range, reducing your debts, or saving for a larger down payment (p. 5). 8 Can I qualify for a mortgage if I am unable to confirm my income? This depends on a number of factors, for example if you are willing to pay a higher down payment; I can help you determine if there are alternatives or workarounds for your individual issues. Monika Tarnik-Jedrusiak 416.822.7357 ext. Lic# M13000687 monika@mortgagepal.ca 6
Section 2. Credit Credit is a critical component to the homebuying process. How can you know if you are financially ready to become a homeowner? This section guides you through some simple calculations to figure out your current financial situation, and how to improve it. Monika Tarnik-Jedrusiak Mortgage Agent License No: M13000687 MortgagePal Inc. 416.822.7357 ext. Lic# M13000687 monika@mortgagepal.ca www.bestrates.ca
Page 1 and 2: HOMEBUYER'S GUIDE Revised July 2017
Page 3 and 4: What to expect from this guide This
Page 5 and 6: Section 1. Qualification Guidelines
Page 7 and 8: down payment Down payment A down pa
Page 9: Gross debt service ratio and total
Page 13 and 14: What is a credit bureau? A credit b
Page 15 and 16: 2. Calculate your monthly debt paym
Page 17 and 18: Home Buyers’ Plan The Home Buyers
Page 19 and 20: Section 3. The Approval Process Onc
Page 21 and 22: the approval process 7. Once we hav
Page 23 and 24: Why use me as your mortgage profess
Page 25 and 26: Section 4. Mortgages and Insurance
Page 27 and 28: mortgage interest rates When you ap
Page 29 and 30: Example Most lenders allow several
Page 31 and 32: other costs to consider Mortgage Li
Page 33 and 34: Section 5. Now That You’re a Home
Page 35 and 36: home insurance As home ownership is
Page 37 and 38: Section 6. How to Save The key to s
Page 39 and 40: 2. Monthly Prepayments By making ex
Page 41 and 42: 5. Renewing with a Mortgage Profess
Page 43 and 44: Section 7. Resources Monika Tarnik-
Page 45 and 46: Term Conventional Mortgage Countero
Page 47 and 48: Term New Home Warranty Program Nota
Page 49 and 50: Homebuyer’s Guide at a glance Sec

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