First Time Home Buyer
Congratulations! You have reached the point where you want to buy your first home. Now that the decision has been made, you may want to know what’s next? Here are some ideas.
Firstly, let’s figure out what you can afford to buy then get you pre approved for a mortgage to start house hunting. This is a simple process of looking at how much money you make and how much debt you are carrying.
Next, we look at your credit rating, this will determine what rate and how much downpayment you may require. The better the credit the lower the possible downpayment (5%).
Lastly, downpayment. Based on your credit score you can put down as little as 5% (on purchases less than 1 million). The size of your downpayment will determine a few things in the house hunting process, how much you can afford, the size of your mortgage payment and whether or not high ratio mortgage insurance is required (CMHC, Genworth or Canada Guaranty).