Buying a Home with GoToBrokers
Buying a home with the team at GoToBrokers gives you multiple advantages with the lenders and Industry professionals. We not only have priority lending status with the Canadian Banks and lending institutes but also belong to the Canadian Mortgage Professional Network. These advantages position you best with all your mortgage needs including first time buyer programs, buying your second home, buying a rental property, using your RRSP for the down payment and more.
GoToBrokers is highly respected in Canada for our code of ethics and excellent knowledge base lending. We are licensed Federally and Provincially and governed by the laws of the Real Estate Act. You are in reliable hands!
Getting Started with your Home Purchase
When buying a home there are many factors to consider and discuss. As your mortgage broker we will review the open mortgage, closed mortgage, fixed rate mortgage, variable rate mortgage, terms, amortizations, prepayment options, credit scores and all the clauses that affect you.
We will start the process with an application collecting essential information regarding your employment, down payment, home usage etc. Your broker will then build your application and review your credit bureaus. Through this discovery process we will determine your budget. Together we will draft a plan that will enable you to proceed with confidence.
CMHC and your Mortgage
You may have heard of CMHC. CMHC, Segan and Canadian Guarantee are the three mortgage insurers in Canada. We often refer to this as mortgage-backed insurance. The purpose of this insurance is to enable you to enter home ownership with less dollars for a down payment. The magic number is 20% down to avoid this insurance. The insurance protects the bank from any losses should one default on their mortgage. The insurer will pay out to the bank and then peruse the homeowner. The majority of mortgages in Canada have mortgage back insurance built into the mortgage.
Conventional Mortgage vs High Ratio Mortgage
The high ratio mortgage is a mortgage with less than 20% equity within the home. Putting less than 20% will create a high ratio mortgage and be subject to Mortgage-backed insurance. The conventional mortgage has greater than 20% equity within the home – putting more than 20% down will create this mortgage type. The conventional mortgage has no mortgage-backed insurance.
Canadian Mortgage Stress Test
We have all heard about this lovely stress test. When we build your mortgage, we will take all of these factors into consideration:
- All mortgages will qualify using 2% higher interest than the actual rate you will receive on your mortgage
- We will use 3% of all your credit cards and unsecured credit line balance regardless of what your actual payment is
- We will use up to 39% of your gross income to qualify your mortgage payment
- We will use up to 44% of your gross income to confirm all your debts and new payment do not exceed this number
Buying a Home with a Rental Suite
Also known as the mortgage helper. If the suite is a legal suite and you are going to occupy a portion of the home, we can use 100% of the rental income. If you are purchasing the home as a rental, we can use 50-80% of the income to offset your mortgage payment.
Purchase Plus Improvements
Love the house just need to update or add to it. We have the answer with Purchase Plus Improvements. We can top up your mortgage $40,000 or 10% of your purchase price (whichever is less). You do the work and once completed the inspector confirms completion, the lawyer will then release back to you approved cost. This product is very popular.
Family Assist Home Purchase
We have a mortgage that you can use with minimal down 5% to purchase a home for a family member. Excellent product and well used in our office. Lowest rates apply!
Buy a Vacation Home
Another incredibly attractive mortgage. You can purchase vacation property with as little as 5% down. This can be a mobile home, cabins and more.
Various sources of Income
You will be pleased to know we have several options for you. T4 income, salary income, part-time income, child tax credit benefit income can now be used if the children are under 12 years of age. Self-employed income, rental income, support payment income, union workers income, and no income if the down payment is greater than 20%.
Some Commonly Asked Questions
How long do I have to have credit for when buying a house?
You will need 24 months (about 2 years) reporting on the credit bureaus
Can I borrow the down payment?
Yes, you have options.
Can I have a gifted down payment?
Yes, there are some rules that rotate around this. We can go over together.
How much can I pull from my RRSP’s for the down payment?
$35,000.
Why GoToBrokers
We work for you!!!! We do not work for the bank. Our job is to ensure you move forward and grow your real estate portfolio. With multiple years of experience, we understand the home-buying process! GoToBrokers also has the “direct to broker” policy. This means that you will always work directly with your broker and not be shifted around a team. We believe it is important that you always have the most current information and the ability to discuss complex topics. Due to our large volume of trading, we are able to expose you to the lowest rates and provide you with multiple lender options. It is also important to know that mortgage brokers at GoToBrokers always have our phones on hand and will take your calls and answer your text after business hours and on weekends. This is not the standard practice within the banking industry. We understand the work schedules of today!
We look forward to speaking with you.