As a mortgage specialist, I can guide you from A to Z through the process of buying a property, from prequalification to your meeting with the notary. I will also advise you on the various products available in the market. After our meeting, you will have the tools to move your project forward. Once preapproved, you’ll be ready to start looking for a property!

Here are seven key factors discussed at our first meeting:

Your borrowing capacity

1- Your borrowing capacity

This is determined by calculating two debt ratios: gross debt service ratio (GDS) and total debt service ratio (TDS). We obtain these ratios by comparing your income with your debts as well as the expenditures for your future property. I then use these ratios to determine your maximum borrowing capacity so I can give you sound advice on your budget. The key is to gauge your comfort zone for the expenses involved in your future acquisition.

Down payment and mortgage insurance

2- Down payment and mortgage insurance

The down payment can be obtained from various sources, such as personal savings, investments, RRSPs or a gift from your family. Are you thinking of buying...

  • A house, condo or duplex?
    It is still possible to buy this type of property with a down payment of as little as five percent.*.
  • A triplex or quadruplex in which you will live?
    The down payment then must be at least 10 percent.* If your down payment is less than 20 percent, you will have to take out mortgage insurance.
  • A triplex or quadruplex as an investment?
    If you want to buy a building solely to rent out (one to four units), mortgage insurance will not be required but the down payment must be 20 percent or more.

Your credit

3- Your credit

Your credit rating is one of the four eligibility criteria to obtain a mortgage. Your credit score is a guide for assessing how you manage your credit and certain monthly obligations (e.g.: personal loan, auto loan, accord D loan, etc.) We therefore must determine from preapproval whether your report contains any unfavourable factors, so we can make the necessary corrections.

Rate guarantee

4- Rate guarantee

Search for a property with peace of mind, knowing that you have a guaranteed rate to protect you against any potential increase! It is possible to obtain a guaranteed rate for up to a year, but the best rates are guaranteed for 90 to 120 days.

Home Buyers' Plan

5- Home Buyers' Plan

The HBP (Home Buyers' Plan) is a government program that lets you withdraw up to $25,000 from your RRSPs without incurring income tax. This withdrawal must be made for the purchase of a property, which must be your primary residence. If you do not have an RRSP or savings, I will explain at our meeting the many ways to take advantage of this program.

Visit the government’s website for program details.

Purchase Plus Improvements program

6- Purchase Plus Improvements program

This program lets you finance renovations to a property you are purchasing, through your mortgage loan and at the same interest rate! Whether you want to renovate the kitchen, bathroom, landscaping, etc. The work will be approved provided it adds to the value of your property.

Budgeting for costs

7- Budgeting for costs

Aside from the down payment, you must plan for several other expenses. Be sure you have funds amounting to two percent of the purchase price. This will be enough to cover the cost of:

  • Inspection (for a single-family home or condo, the cost is about $600)
  • Notary’s fees (between $1,000 and $1,200)
  • Sales tax (applies only to the insured loan and amounts to about 10 percent of the insurance premium)
  • Municipal and school tax adjustments, condo fees, etc.
  • Transfer taxes (see our transfer tax calculator)
  • Moving

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