The Learning Centre:
What the pros know about buying a home.
Buying a home has always been a big commitment, but it’s worth it.
Thinking of buying your first home, but stymied at saving for a down payment that’s big enough? Want to sell to take advantage of hot market conditions, but delaying because you’ll still have to buy somewhere else to live? Relax. Take a deep breath. With the knowledge and assistance of an accredited mortgage expert, the whole process will become a lot easier.
Buying a home has always been a little intimidating. Sure, your grandparents bought a house for five digits in the GTA … but their income was only $7,000 a year. Your parents’ home was a reasonable cost, but the mortgage was 19% (and teachers in the mid-1970s made between $15K and $19K.*) A home will be the single largest financial commitment most people will ever make. The return, however, can be seen in both financial and lifestyle terms. Not only can it be a good investment, but it’s also where you and your family will enjoy living for years to come.
How to find a home you love and a mortgage you can afford
It’s no secret, actually. The key is knowledge. Do you have strategies to maximize your down payment … know how the size of your down payment affects the rate of your mortgage and insurance … understand how being flexible about location can impact the price? A professional lending specialist can help with all your questions, because they are dedicated to understanding the housing market and all the costs included with a mortgage.
Take advantage of an accredited mortgage professional’s expertise to save time and money.
“Working with an accredited mortgage professional is different from working with someone who can only offer you the mortgage rates offered by one company”, says Educators Agent-Regional Director, Chris Knoch. The accredited mortgage professionals at Educators Financial Group offer you:
- Access to multiple rates and lenders, which may include lower rates that are not advertised widely. An accredited mortgage professional can vet lenders and negotiate on your behalf, and will have relationships with these lenders.
- A mortgage customized to your needs. Because an accredited mortgage professional works with a variety of lenders, they are more likely to find one with the flexibility to offer you what you need.
- Service that’s free to you. Accredited mortgage professionals are paid by the lender, and there usually isn’t an out-of-pocket fee to you.
- Experience. Accredited mortgage professionals have seen many different types of clients and negotiated many different types of mortgages. The professionals at Educators Financial Group are also familiar with how an educator’s financial situation can affect their mortgage needs.
An example? They can ensure that you understand and are prepared for the potential additional costs of buying a home, such as:
- property valuation fee (determining the property lending value for mortgage purposes)
- home inspection fees
- property survey
- land transfer tax
- legal fees and related expenses
- GST/HST where applicable
- title insurance
- insurance costs for high-ratio mortgages
- interest adjustments
- prepaid property tax and utility adjustments
- home insurance
- mortgage life insurance
- moving, upgrades and new appliances
You need to keep up-to-date on the cost of homeownership.
It’s obvious from the above that potential homebuyers must be aware of all the costs involved before closing a deal. Problem is, requirements and costs change, and without professional help, it can be hard to understand the latest requirements.
Here are some of the changes that potential homebuyers faced in the last few years alone:
- a stress test previously used for approving high-ratio mortgages is now required to all insured mortgages, including those where the buyer has more than 20 percent down payment
- new restrictions on when the government will provide insurance for low-ratio mortgages
- new reporting rules for the primary residence capital gains exemption
- government consultations on lender risk sharing**
No wonder it pays to work with an expert whose job it is to understand the most up to date ‘fine print’ in getting a mortgage today.
In the market for a new home or renewing your mortgage? Make getting professional expertise your first step. Speak to an Educators Financial Group lending specialist today.
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The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering of tax, legal, accounting or professional advice. Please ensure to consult your accountant and/or legal advisor for specific advice related to your circumstances. Educators Financial Group will not be held responsible or liable for any losses, costs, damages or expenses incurred by reason of reliance as a result of the aforementioned information. The information presented was obtained from sources that are believed to be reliable. However, Educators Financial Group cannot guarantee their completeness or accuracy.