9 Steps to Buying A Home - Buyer's Guide

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Section 2. at a glance 1 What is a credit report? A credit report is a history of how consistently you meet your financial obligations. 3 How can I improve my credit score? Some courses of action can include: paying all your bills and obligations on time, avoiding new credits and loans unless they are absolutely necessary, and/or rebuilding your credit at your bank (p. 9). 5 When should I consider a co-signer? In case your debt ratio is an issue, you may have to look into increasing your income. One option is having somebody co-sign on your mortgage, since you may be able to include their income (see also p. 12). 7 What are the Home Buyer’s Plan eligibility conditions? You must be considered a first-time home buyer, buy or build a qualifying home for yourself, and intend to live in the home as your principal place of residence within one year after buying or building it (see also p. 13). 2 How do I get my credit report? You can get your individual report from Equifax or Trans Union (p. 8). Before looking for a mortgage lender, get a copy of your own credit history and examine it to make sure the information is complete and accurate. 4 How do I determine if I am financially ready to buy a home? You need to figure out how much you are currently spending. The guides on pages 10 and 11 can help you calculate your expenses. 6 What is the First Time Homebuyer’s Plan? The Home Buyer’s Plan allows you to withdraw money from your Registered Retirement Savings Plan (RRSP) taxfree for a down payment. 8 Do I need to pay a deposit when I make an offer? Yes! The deposit forms part of your down payment, the rest is paid when you “close” the purchase of your home. Monika Tarnik-Jedrusiak 416.822.7357 ext. Lic# M13000687 monika@mortgagepal.ca 14
Section 3. The Approval Process Once you decide you will need financing to obtain your home, you will need to apply for a mortgage loan. This is usually a two-step process. The first is pre-approval, before you begin house shopping, and the second is a firm approval once your offer on the home you want to purchase is accepted. This section will guide you through the approval process and how you can best prepare. 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 and 10: Gross debt service ratio and total
Page 11 and 12: Section 2. Credit Credit is a criti
Page 13 and 14: What is a credit bureau? A credit b
Page 15 and 16: 2. Calculate your monthly debt paym
Page 17: Home Buyers’ Plan The Home Buyers
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

9 Steps to Buying A Home - Buyer's Guide

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