First Time Homebuyer SeminarSeptember 19thPresented byBrad Compton

What Does It Take to Own a HomeThis presentation will review:Why use a Mortgage ConsultantYour credit – what you need to knowHome purchase processGovernment programs and tax creditsRefinance – what to look out forHow to pay down your mortgage faster

Why Should I Use A Mortgage Broker?A Mortgage Broker will:Canvass over 50 lenders to ensure the client gets the best mortgage rate and terms availableEducate the client on their available options making sure they are part of the decision process Simplify the mortgage process from start to finish by liaising with the lender and handling all document requirements 24/7 availability and continuous service after the mortgage closesProtect your creditCredit counseling and access to lending sources specializing in clients with unique requirements

Canvass over 50 lenders to ensure the client gets the best mortgage rate and terms available

Educate the client on their available options making sure they are part of the decision process

Simplify the mortgage process from start to finish by liaising with the lender and handling all document requirements

24/7 availability and continuous service after the mortgage closes

Protect your credit

Credit counseling and access to lending sources specializing in clients with unique requirements

The 5 C’s Of CreditCharacter – Your credit worthiness is based on your Stability and Net WorthCapacity – Are you able to cover your current debts along with the added expense of owning your own home?Credit – A good credit history demonstrates your ability to repay an outstanding debtCollateral – How much is your property worth?Capital – How much of your own equity will you have in your property?

Know Your Score

The Home buying ProcessStep 1 – Mortgage pre-approvalStep 2 – Shopping for your homeStep 3 – Mortgage approvalStep 4 – Subject removalStep 5 – Legal process

Purchase Scenarios

Own Your Home SoonerA couple strategies to pay down your mortgage quicker and own your home sooner!– Make bi-weekly or weekly payments– Put extra money toward the mortgage when you can afford it* Assumes lump sum payment of $2,000 per year

Things You Should KnowFirst Time Homebuyers Program – Each applicant can withdraw up to $25,000 from their RSP to use toward the purchase of a home ($50,000 in total).Land Transfer Tax Rebates– First time homebuyers will receive a refund of their provincial land transfer tax up to a maximum house value of $227K. The Toronto land transfer tax will be refunded up to a max house price of $400K.Minimum Downpayment– Minimum of 5% required for the purchase of a property.Mortgage Insurance– All mortgages with less than 20% equity must be insured.

Things You Should KnowFirst Time Homebuyer Tax Credit– First time homebuyers are eligible for an income tax credit of 15% of their closing costs up to a maximum of $750.New Home GST Rebate– Buyers of a new home can apply to get a 36% GST rebate to a maximum of $6,300. Note, most new home builders include the GST in the purchase price and therefore the purchaser would not be eligible for the rebate.Home Renovation Tax Credit– Home owners are eligible for up to a 15% tax credit on eligible home improvement expenses of a minimum of $1K to a max of $10K in 2009.

Things You Should KnowInformation Required Before Closing– Lawyer’s information– Void cheque– Proof of income (job letter, recent pay-stub, business license, T1 General, Notice of assessment)– Proof of down payment (3 month’s worth of bank/investment statements, gift letter)– Appraisal (if not a CMHC insured mortgage)

The High Cost of RentingCan You Afford It?

Any Questions?Brad ComptonMortgage ConsultantTelephone: (416) 671-2183E-mail: bradcompton@invis.cawww.YourLowMortgage.ca