Mortgage Purchasing

Purchasing A Home

Purchasing a home is such an important time in your life and it involves a sum of huge decisions. The last thing we want you to worry about is the stress of getting a mortgage. We’ll take you through the process step by step and handle the paperwork. 

If you are a first-time home buyer, click here.
If you are self-employed, click here.

The first step is figuring out how much you qualify for. Come in to talk to us and we’ll get to know you, what you want, and help you fill out a short form. Keep in mind, these are the factors lenders will be looking through when they are looking at your loan application, later on:

  • Identity confirmation 
  • Proof of Income (POI): paystubs, T4, T1 Generals
  • Employment history letter 
  • Credit history: we will pull your credit bureau report and score
  • Assets and debts 
  • Property value

After you are pre-approved, we will lock the rate for up to 120 days, so that you are safe from any increases in rates. Don’t worry, if the rate drops, we will opt for that.

How much is the down payment?

General guidelines:

  • Purchase price: under $500,000 = minimum 5% down payment
  • Purchase price: $500,000 to $999,999 = 5% on the first $500,000 + 10% on the remainder
  • Purchase price: $1,000,000 and up = 20% down payment 

For any portion with less than 20% down, mortgage default insurance is added to the principal amount of your mortgage. Lenders generally use one of these insurers: CMHC, Genworth, and Canada Guaranty.

For any property valued at $1M+, the minimum down payment is 20% and no insurance premium added unless required, such as for self-employed stated income (greater than 65% LTV).

What other costs should I expect?

There are many costs that you need to be prepared to pay for when purchasing a new house. We can help you figure out which ones apply to you.

This can be an overwhelming list, but this is what we do everyday! You can bet we are good at it, and can help guide you.

Property Transfer Tax Rates

Required when you go to the solicitor for signing. Learn more about property transfer tax.

  • 1% of fair market value up to $200,000
  • 2% of the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
  • 3% on the portion of the fair market value greater than $2,000,000, and
  • If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000

If you are a first-time home buyer, you may be exempt or partially exempt from this.
Call us for details.

GST Rate of 5%

We will help you figure out if you qualify for GST New Housing Rebate, which can save you money!

  • If you are buying a new home for your primary place of residency and it is under $350,000, the rebate is 36% of the 5% GST, with a maximum rebate of $6,300
  • If you are buying a new home for your primary place of residency and it is between $350,000 and $450,000, you may receive a partial rebate
  • Homes above $450,000 do not receive a rebate

Contact us for more details and to see if you are eligible.

Insurance Costs

  • Title insurance
  • Property insurance
  • Mortgage insurance

Other Fees

  • Lawyer fees
  • House inspection
  • Property appraisal
  • Property taxes & utilities (adjusted and paid at the time of solicitor signing)