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Looking for a reliable and trustworthy Canadian mortgage company? Look no further than MortgagesToGo.ca! We’ve been helping Canadians get the best mortgage rates since 2004.
Historically, securing a mortgage was difficult, intended to discourage players from guessing the outcome. To solve this challenge, we have built a system that simplifies the mortgage process and removes opacity and unknown risks. We ourselves have been in the process, so we understand firsthand the difficulties and inaccuracies facing new entrants.
Our Values
With our help, you will be able to simplify the process of financing your own home, keeping more of your money.
Convenience
You can effortlessly log on to our website and apply anytime, so you can always stay in control of where you are in the process.
Customers First
We believe in a customer-first approach with MortgagesToGo.ca. Our Mortgage Advisors are always ready to provide better mortgage services.
Transparent
We are dedicated to offering our clients an excellent rate when using MortgagesToGo.ca
Want to learn more about mortgages in general?
Check out our Frequently Asked Questions page for answers to our clients burning questions!
Becoming a Homeowner
Step 1: Determine Your Home Affordability & Down Payment
We always recommend, and often find it best to analyze your finances to determine how much you can afford to spend on a home before applying for a mortgage. That way when you approach the banks for a loan you’ll be better prepared and have a realistic idea about what kind of loan you can expect to get.
As a rule of thumb, we go off of this mortgage rule: your total monthly housing costs (including mortgage payments, property taxes and heating expenses) should be no more than 32% of your gross household monthly income (i.e., income before taxes have been deducted).
By comparing your gross household income to your current debt load you should be able to determine how much you can realistically afford to spend on a house each month.
A mortgage down payment is the amount of money you pay upfront when purchasing a home. The minimum down payment required in Canada, on purchases of less than $1M, is 5% of the home’s value. However, if your down payment is less than 20% of the value of the home there will be a mortgage insurance premium added to your mortgage.
Sources for a Down Payment
There are a number of ways you can source funds for a mortgage down payment. Traditional sources include:
- Saving a fixed amount from every paycheck
- Selling stocks, bonds or personal property
- Receiving help from immediate family
- Another great option to consider is the RRSP Home Buyers’ Plan (HBP). This lets first-time homebuyers withdraw up to $25,000 from Registered Retirement Savings Plans (RRSPs) for a home purchase, tax-free.
Step 2: Home Buying Costs
Now it’s time to start preparing for your purchase. prepare you for the various costs that come with purchasing and owning a home. Buying a home with a down payment, and realtor fees aren’t the only costs you’ll incur, you will also need to budget for other home buying costs, these can include:
- Appraisal fees
- Legal fees
- Home inspection fee
- Home/fire insurance
- Title insurance
- Land registration fees
- Water portability or septic tests for acreage-type properties
- Estoppel Certificate fees
- Condo or strata fees
- Property taxes and tax certificates
- Deposits for setting up utilities
- Moving costs and other expenses.
Step 3: Choosing the Right Mortgage for You
There are a number of different mortgage options to choose from, all with their own pros and cons. It’s important to analyze your situation and choose the mortgage that best fits your needs. This is where a mortgage broker can be very helpful, and provide you with insight into each option, while getting a better understanding of your situation, we can provide advice from there.
- Open Mortgage
- Closed Mortgage
- Fixed Mortgage
- Variable Rate Mortgage
Step 4: Choosing the Right Representatives
In addition to working with a knowledgeable mortgage broker, you’ll also want to hire a lawyer and a real estate agent to help you with this important decision.
DO YOUR HOMEWORK
Check out an agent’s website and social media presence
Read online reviews Real Estate Agent Reviews
Ask around for referrals Real Estate Agent Referrals
HAVE A CONSULTATION WITH YOUR REAL ESTATE AGENT FIRST
Ask about their Real Estate Experience in Canada
Ask about their marketing strategy
Ask about their fees their Real Estate Fees
Step 5: House Hunting
First thing is creating a wishlist. Include was necessary and needs to be included with the home, and then a want, which is something that can be compromised on, or that is not a deal breaker if the home doesn’t have it.
After you make an offer on the home of your dreams, you need to complete a few more steps:
Hire a Home Inspector
This step is optional, but it’s a smart idea for resale homes. You can choose to make your offer to purchase the home conditional on the outcome of your inspection. If your inspection reveals major problems you can negotiate those repairs with the seller before your deal closes, or legally withdraw your offer.
New Home Warranty
If you’re buying a brand new home you may want to consider a New Home Warranty. The builder will provide a New Home Warranty to cover things like deposits and completion dates, along with labour and materials for at least one year after the home is built. It also protects you against structural problems for a minimum of ten years.
Finalizing The Deal
The first step is the final approval of your mortgage. You will also want to meet with your lawyer to confirm details like insurance and conditions, and the results of the property title search.
Final Walk Through
Regardless if you buy a new build, or a resale home, you will need to complete a final walk through to ensure everything is completed, check for any deficiencies, and make sure the house is clean and ready to move into the next day.
Moving Preparations
Line up utilities and other services like phone, cable and internet. Also, forward your mail to your new address and hire a moving company. Preparing these things well in advance will help you make a smooth transition to your new home.
Closing Day
This is the day you legally get ownership of the house. Make sure you know how much money you will need to have on this date. It’s important to note that the amount you owe on the closing date is more than just what is stated in the purchase agreement. It will also include land transfer tax, legal fees and disbursements, and any closing date adjustments.
