Mortgage tools

The buying process (simplified)

• Contact your broker
  • Complete online application
  • Get pre-approved and obtain a rate hold
• Provide documentation
• Obtain real estate agent
  • Ask about our trusted realtor list
• Home Shopping
  • Obtain an accepted offer
• Subject removal stage (most important stage)
  • Financing
    • We will give you the go-ahead when this is approved
  • Inspection
    • This shows the quality of the home you are buying
  • Appraisal
    • This proves the value of the home you are buying
• Time before completion
  • Prepare for the move
  • Make decision on mortgage or life insurance
  • The lender will send the final mortgage instructions to your solicitor
• Instruction process
  • The solicitor will contact you to arrange a time to sign final docs
  • We will provide a trusted solicitor if you need one
• Welcome home!
  • You are no longer paying someone else’s mortgage!
  • You receive the keys to your new home!

Documents required (employee)

It is very important to send in your document prior to writing an offer. We will spend time reviewing everything to make sure the information provided is accurate. If something needs correction, it’s better to find that now instead of during subject removal.

• Job letter from employer confirming start date, position and minimum annual salary (must be on company letter head with address and phone number) *click here for an example
• Two recent pay stubs
• Recent NOA’s (notice of assessment)
  • This isn’t usually required but takes 2-3 weeks to obtain if you can’t find it and the lender asks for it
  • You don’t need to send them in but please have NOA’s available
• Proof of cash for closing costs (usually 1.5% of mortgage)
• Proof of down payment (3 month history required)
  • Bank statements
    • Must have name and account number
  • RRSP statements
  • Gift letter *click here for an example
    • This must be signed by the  donor (family members only)
    • Confirmation of that money must be transferred from their account into yours
  • Investment/ stock statements

Documents required (self employed)

It is very important to send in your document prior to writing an offer. We will spend time reviewing everything to make sure the information provided is accurate. If something needs correction, it’s better to find that now instead of during subject removal.

• 2 year NOA’s (Notice of assessment)
  • Taxes must be paid
  • We may use this to show income
• 2 years T1 General’s
  • Or business license (if applicable)
  • Or Articles of incorporation (if applicable)
• Proof of cash for closing costs (usually 1.5% of mortgage)
• Proof of down payment (3 month history required)
  • Bank statements
    • Must have name and account number
  • RRSP statements
  • Investment/ stock statements

Reminder of closing costs

The following are estimates of potential closing costs.

• Property transfer tax: 1% on the first 200k & 2% on the remainder
• Lawyer or Notary: $1,000 – $1,200
• Appraisal (We can usually get the bank to cover this): $250 – $350
• Inspection: $350 – $450
• HST: This is only on new construction and can be added to the purchase price/ contract

Things to discuss with your broker

• What type of rate should I take: fixed or variable?
• Should I be considering a re-advancable mortgage at this stage?
• How can I pay off my mortgage faster?
• How can I write off the interest on my principle residence?
• What is the best payment for me? (monthly, semi-monthly, bi-weekly, weekly)
• What is the Smith Manoeuvre?
• Does the lender collect property taxes for me?
• What is a Frozen VRM payment?
• What is the new qualifying rate and how does this affect me?
• What is the difference between property tax and property transfer tax?
• How can I subscribe to Jessi’s video blogs?
• Do I need to be there for the appraisal?

Reminders

• Your deposit forms your down payment.
• If you are including commissions, overtime and bonuses in your annual income your will need to also show last 2 years Notice of Assessments to confirm income.
• If you are subject to HST (new construction only), there is a rebate in place for you

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