Tips for First-Time Home Buyer

Posted on: October 30, 2020

1.Build up your Credit history-

-Open a Bank account
-Get a Credit Card, gradually increase the limit.
-Pay your utility bills, Rental bill etc. on time.
-Avoid repeated Credit Check to keep your score intact.
-Do not go over your credit card limit. For example- if your credit card limit is $1000, then try not to go over, try to use it wisely to get good credit score.

2. Save money for Down Payment-

As a First-time home buyer, you can buy a house at 5% Down Payment. If your down payment is less than 20 % then it is called High Ratio Mortgage and subject to purchase Private Mortgage Insurance (PMI) as well. You can buy a house at 5 % down payment upfront, but you also require getting a Mortgage default insurance from CMHC, Genworth and Canada Guaranty. This insurance protects lenders if buyer default in making a payment.
Along with that, government plays crucial role to help new home buyer to buy a house. You might be eligible to get a first- time home buyer incentive. It is a shared-equity mortgage with the government of Canada. Ask a Mortgage Professional for details.

Can gift funds be used as down payment?

Gifts from family in the form of down payment money will be accepted by most of the lenders. A donor is usually required to provide a gift letter to confirm that the money is a proper gift and not a loan. For mortgages with less than 20% down payment, the home buyer must have a mortgage loan insurance provided by CMHC, Genworth, or Canada Guaranty.

3. Find an Accredited Mortgage Professional-

Mortgage Professional helps you to arrange a mortgage for your house. Depending on your Credit history you can get financing from well recognized financial institutions.

What is a Pre-approval?

A pre-approved mortgage suggests an interest rate guarantee from a lender for a particular period usually 60 to 90 days and for a fixed amount of money. The pre-approval is calculated based on information provided by you and is usually subject to certain conditions being met before the mortgage is finalized. Conditions would typically be things like written employment, income evidence and down payment from your own capital. Majority real estate professionals will make sure you have a pre-approved mortgage before they show you properties available for purchase. This confirms that they are showing you a property within a given price range.
As a new immigrant to Canada, it is likely that one of your top financial goals is to own a home. MB Mortgages is here to advise you on your affordability, credit history and many mortgage products that are available to us as a Brokerage. We are Accredited Mortgage Professionals and can offer you mortgage solutions based on your affordability at best rates.

4. Find a Real Estate Agent-

Before you find a Real Estate Agent and start looking for a property, please come to us for a free mortgage assessment and pre-approval based on your income and credit history to save your time. Getting a pre-approval helps to know the estimate amount you can be approved of. After you have been pre-approved, your realtor will help you find the house as per your needs.

Contact us-

We are located at 2 County Court Blvd., Suite # 438, Brampton, ON L6W 3W8. Call MB Mortgages Inc. today at 905-458-6929/416-939-7131 for your queries or you can email us at: [email protected] or you can visit our website:

Why choose us-

As a leading Mortgage Brokerage, we have strong relations with multiple banks and numerous lenders. We work with Canada’s leading lenders to provide you a mortgage solution that fits your budget. Our mortgage and financing process is amazingly simple, we represent you and match you with the best suited mortgage as per your needs. This way we can guide you through this complicated process with our years of mortgage financing experience.

The information provided in this blog post is intended to provide general information. You should consult with a mortgage professional to fully determine the scope of your situation. MB Mortgages shall not be held liable from usage of the information provided on this page. Individual situation may vary.