• First Time Home Buyers

  • Free services, experience and incentives to help you buy your first home

    As a licensed mortgage broker, I'm not only dedicated to helping you qualify for a mortgage – I can ensure the mortgage you choose is customized to you and your family’s immediate needs.

    The amount of down payment for first-time home buyers is usually one of the biggest hurdles to qualifying for a mortgage in the current economy. However, I have access to over 20 lenders in the Canadian marketplace and can help you qualify, virtually no matter what your circumstances.

    Here's how I can help you find the right mortgage:

    • I’m a licensed Mortgage Broker: My expertise in securing your mortgage is only matched by my passion for helping you attain home ownership
    • My services are free: I get paid by the lender who approves your mortgage
    • I shop the market so you don't have to: I have relationships with over 20 lenders, so I'll find the right mortgage for you, saving you time and money
    • I make the process simple and straightforward: I walk you through every step of the process, gathering your information and presenting it to lenders that best fit your specific profile, based on your debt ratios and beacon scores
    • I’m available on your terms: Day, evening and weekends
    • I offer a wide array of services: Do you lack a down payment or are you credit challenged? Perhaps you're self-employed and can’t get a bank mortgage? I can help you secure extra credit lines or a second mortgage, as well as help with mortgage insurance, life insurance, retirement planning and meeting your children’s education goals
    • Rate protection: If rates drop before your purchase closes, you'll automatically get the lower rate, and if they go back up you'll have the lower rate locked in. Try finding a bank that will do that for you!
    • Constant touch: Before, during and after your mortgage begins, I'll keep in touch -- through my monthly newsletter, variable rate updates and even planning your Mortgage Burning Party

    I am completely dedicated to your success and to ensuring your mortgage is the right one for you and your family.

  • What’s the difference between pre-qualified and pre-approved

    Pre-qualification is a preliminary step in which your bank presents you with a high estimate of what you can afford. It's not an actual commitment or promise of anything, least of all what you can truly afford.

    Pre-approval is what you receive once a good mortgage agent or broker gathers your information, assesses what you can truly afford and secures an as-low-as-possible 4-month rate hold for you, while you shop for a property with your realtor. If you don’t find a property in that time, the broker can secure another rate hold for you.

  • New mortgage rules: What you need to know!

    As of February 15, 2016, the Federal Government mandates that any purchase between $500,000 and $1,000,000, requires a further 5% down-payment.  For example:

    Purchase price    $650,000
    $500,000 @ 5%    $25,000
    $150,000 @ 10% $15,000

    Total down payment required: $40,000

    Purchases under $500,000 are still eligible for 5% down.

    You are also still required to have your closing costs, usually between 1.5% - 2.5% of the purchase price.

    Further to this are the new mortgage rules, that were initiated on Nov 30, 2016. The new rules differentiate between insured and uninsured.

    Before November 30, 2016, we assessed a purchase as Conventional or High Ratio. Now we need to look at a purchase as Insurable or Un-Insurable. Note all refinances are considered Un-Insurable.

    So how does this affect you?

    If your deal is Insured, meaning it's insured by CMHC or Genworth, the following parameters apply:

    • The purchase price must be less than $1 million
    • The mortgage must be a purchase or transfer
    • The minimum Beacon score must be 600
    • Debt ratio are max GDS -39% or TDS 44%
    • You must qualify at the benchmark rate (currently, 4.64%) and you can pick a variable or fixed rate
    • The maximum amortization is 25 years
    • Rentals – only 2-4 units allowed
    • Transfers with a previous policy in place are allowed to maintain the existing schedule up to 35 years
    • Transfers that don't have an existing policy in place must have a remaining amortization of 25 years or less

    If your deal is Uninsured, meaning it's not insured by CMHC or Genworth, the following parameters apply:

    • All refinance and/or equity take out mortgages will no longer be insured
    • If the deal is conventional (80% or less) you can still qualify at the 5-year contract rate
    • All mortgages valued at $1 million or greater will be un-insurable
    • Depending on the lender, if the amortization exceeds 25 years (some still offer 35 year amortizations), you will be un-insured
    • Single-unit rentals are now un-insurable (with certain lenders there will also be a rate premium added to the rental purchase)
  • How to save for your down payment

    Need help saving for a down payment? Here are some tips:

    • Create a budget and prioritize the down payment over any other expense, including a new car, vacation or major expense
    • Pay off your high-interest credit cards and loans first – not only will this allow you to reduce your debts but it will also help you qualify the mortgage as you will have a higher beacon score and better debt ratios
    • Start saving 10-20% of your income. If you have trouble saving, ask your employer to put this amount aside in a self-directed savings account or RRSP so you can take it out when needed
    • Start living a more frugal lifestyle. Do you go out to dinner every week or buy your lunch everyday? Reduce your unnecessary expenses and your savings will quickly increase
    • Open a self-directed RRSP account. As a first-time home buyer you can use up to $25,000 towards the Home Buyers Plan and pay the money back over 15 years, tax free. Click here for more info!
    • Open a self-directed TFSA and invest in funds with low fees or in syndicated mortgages with no fees. Click here for more info!
  • Here are the crucial steps to helping you buy your first home:

    Step 1

    First, we discover how much you qualify for. I will sit down with you, gather your documents, and build a plan to find a mortgage that works around what you and your family want and can afford. This pre-qualification roughly tells you the maximum property purchase price you qualify for, based on your income, assets and liabilities.

    Step 2

    Next, I proceed to securing your pre-approval. Here, the lender verifies your income, assets and liabilities, and in most cases your credit report is verified. A pre-approval letter means you're likely to be approved for a mortgage as well as the amount for which you may be approved. This rate can be held for 60-120 days while you shop for your home.

    Especially important for first-time homebuyers: Getting pre-approved lets your realtor know how much you can truly afford so he or she isn't sourcing homes out of your price range.

    Step 3

    You and your realtor shop! Don’t have a realtor? I can suggest one for you.

    Step 4

    Once you find the home of your dreams, we move to the approval, in which the lender provides a mortgage commitment. In most cases, you will have only 5 days to secure your financing. So, to meet this deadline, it's especially important to have all of your paperwork ready. Within the 5 days, we'll also order an appraisal, which tells you and the lender whether the purchase price is a fair value.

    Especially important for first-time home buyers: A common mistake is to waive financing because first-time home buyers are afraid of losing out on the property (often in multiple offer situations). However, if you waive financing and you are not approved, you could be sued by the seller for breach of contract.

    Step 5

    Gathering of all relevant documents to satisfy the lender's requirements and closing of the mortgage.

    Step 6

    Move in to your new home!

  • Exclusive incentives

    As a first-time homebuyer, you're eligible for a variety of financial incentives, including:

    $750 tax credit

    The First-Time Home Buyers' Tax Credit (HBTC) helps with costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes. The HBTC amount, up to a $750 tax credit, applies to qualifying homes purchased after January 27, 2009. For more information, click here.

    Land transfer tax discounts

    Ontario's Land Transfer Tax is a provincial tax payable by the purchaser of a property at the time the transaction closes. As of January 1, 2017, first-time home buyers receive a reduction of up to $4,000 on the Ontario Land Transfer Tax – an increase of $2,000.

    Please note: The Toronto Land Transfer Tax is payable if purchasing in the city of Toronto, however first-time home buyers do not pay on the first $400,000 value of the property.

    Who qualifies and who doesn't?

    • If you owned a home previously you don’t qualify – even if that home is in another country
    • You can only claim this rebate if the home is owner-occupied and not a rental
    • If you're married but your spouse owned a home, while also married, you cannot qualify but if your spouse sold his or her home prior to getting married to you, you can qualify
    • You must be a Canadian citizen to qualify, however if you're a permanent resident and receive your status within 18 months after closing, you can then apply for the rebate.

    CMHC Green Home Savings Incentives:

    Buying an energy-efficient home or making energy-saving renovations can offer big savings. A 10% CMHC mortgage loan insurance premium refund and a premium refund for a longer amortization period (if applicable) may be available when you use CMHC insured financing to purchase an energy-efficient home.

    Are you a first-time home buyer having trouble qualifying or unsure which mortgage is right for you? I can help. Give me a call today at 416-697-5443 or email me at [email protected]

    As a professional Mortgage Broker, located in Newmarket, Ontario I work with First Time Home Buyers in York Region and the GTA. I am dedicated to helping you qualify for a mortgage and also ensuring that the mortgage you choose will be customized specifically to you and your family’s immediate needs.

    Mortgages are not a one-sized fits all solution - so let’s get started on finding the right First Time Home Buyer mortgage for you!