Helpful Information When Buying a Home

Who is CMHC?
This stands for Canadian Housing and Mortgage Corporation.
GE Capital is in the same business of insuring mortgages for lending institutions. This does not insure you in anyway but it provides the bank with default insurance because it is considered a higher risk loan when someone puts less than 25% cash down payment of the purchase price. The ideal down payment is 25% of the purchase price. Once you're ready to put an offer on a property you'll need part of your down payment as a deposit, so remember to keep some funds readily available and accessible.

Here are the standard CMHC / GE Insurance Premiums

We can show you ways to avoid these extra costs!

Note that at Mortgage for Less we can also provide you another option to paying the CMHC premium and that would involve a second mortgage. We can show you how this can save you thousands of dollars. Your bank can't even give you this option because they can't provide second mortgage financing.

Record of Employment
A Lender will expect to see a two to three-year history record of employment from a mortgage applicant. This type of information includes: A signed letter from a full-time employer outlining level of salary, source deductions, and bonuses or commissions; or a letter of income, and pay-stubs from an employer for consistent part-time work over a minimum of two years; or three years of financial statements or records, and tax returns for self-employed individuals.

TIP: Keeping up-to-date financial information before you begin to look for a new property to eliminate obstacles in the mortgage process.

The other players on your team

Real Estate Agents
Real estate agents are certified professionals who are trained to offer the buyer: A menu of properties suitable to budget requirements; recommendation of government-sponsored programs; and conduct negotiations on the buyer's behalf to complete an Agreement of Purchase and Sale.

TIP: Some questions to prepare for researching an agent to represent your best interests are: Are they familiar with the area where you want to buy? How many clients are they personally serving now? Do they have too many to service your needs effectively? What services can they offer to you? Ask for one or two references, and an attack plan for what they will do for you.

Home Inspectors
A formal Offer to Purchase agreement usually includes a clause for an inspection of the property. A buyer is not legally required to arrange a home inspection; however, an inspection will provide an objective opinion regarding the condition of the property the buyer wishes to purchase.
A Home Inspection Association found in the local telephone directory will provide a list of qualified home inspectors to research. A fee is charged for their consultation and a detailed written report will be provided.

TIP: An inspection fee is approximately $300-$400. For a purchase worth tens of thousands of dollars, it is a relatively small amount to spend for what is potentially a profitable long-term investment.

Real Estate Lawyers
Legal transactions to complete a property purchase, and finalize the mortgage financing will require the services of a lawyer.

When a Lender issues a Mortgage Commitment, they will forward copies of the Mortgage Instructions to your lawyer. Your lawyer will: Research the property title; ensure taxes and utility accounts are paid in full; review subdivision agreements; verify municipal building and zoning requirements; and review the property survey to prepare and finalize your mortgage for registration.

On the day the property transfers ownership, the buyer's lawyer will meet with the seller's, or vendor's, lawyer at a Registry Office to exchange relevant documents, money and keys. The transaction is declared "closed" when these exchanges take place.

The lawyer is then required to register the documents which transfer the property title to the buyer(s) name(s), and when this is completed he will relinquish any keys to his client.

TIP: A lawyer in general practice will be able to complete your purchase; however, lawyers with a focused real estate practice may prove a better tool if you are unsure of what to do, or have complications in your purchase agreement or mortgage.

At Mortgage for Less we can assist you by providing realtors, lawyers or home inspectors that will ensure the same unmatched service that we provide, so you become "A client for life."

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Mortgage for Less
[Verico Mortgage For Less Corp. ]
120 Eglinton Avenue East, Suite 500
Toronto, ON M4P 1E2
CANADA
Phone: (416) 699-1010 Fax:(416) 699-8308
Toll Free: 1-888-448-2222
E-mail: info@mortgageforless.com

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