The document provides an overview of important considerations for those starting their mortgage journey, including:
1) Doing introspection to determine readiness for homeownership and its commitments before starting the process.
2) Figuring out your budget by understanding gross debt service and total debt service ratios to determine borrowing capacity.
3) Preparing necessary documentation like credit reports and financial records for pre-approval to gain confidence in the house hunting process.
This document provides answers to common questions for first-time home buyers. It discusses key terms like mortgages and notes, available programs for first-time buyers, the loan application and approval process, and differences between pre-qualification and pre-approval. It also outlines factors that determine credit scores, available loan types and their advantages, and estimated closing costs. Responsibilities during the lending process are noted as well, such as accurately reporting finances and not signing blank documents.
This document provides information about the homebuying process from a mortgage lender called Get A Rate Home Loans. It includes sections on understanding their loan process, documents needed for pre-approval, tips for homebuyers, and definitions of common real estate terms. The document is intended to educate potential homebuyers on working with this lender.
This document provides information on various homeownership topics including the mortgage process, types of mortgages, credit management, foreclosure, and protecting your investment. It defines key mortgage terms, explains fixed and adjustable rate mortgages, describes the components of a credit score and how to manage credit, outlines the foreclosure process and alternatives, and reviews different types of homeowners insurance. The document aims to educate homeowners and potential buyers on essential financial literacy concepts related to purchasing and maintaining a home.
THE ULTIMATE GUIDE TO BUYING & SELLING A HOME IN THE GREATER TORONTO AREAJusto Inc.
Welcome! For most people, buying or selling a home is the biggest financial transaction of their lives. Whether it’s your first time or not, the information in this ebook will help you make more educated decisions, avoid common mistakes, and could even help you save a great deal of money! Find out more at https://justo.ca/
The document discusses various topics related to housing loans and the housing crisis. It provides information on credit scores, different types of loans including credit cards, student loans, business loans, and home loans. It also discusses factors that contributed to the housing bubble such as rising home prices, subprime loans, securitization of mortgages, and the role of government agencies like Fannie Mae and Freddie Mac.
BUYING YOUR FIRST HOME - capitalhomelending.cacapitalhl
1) The document provides guidance on shopping for a mortgage by outlining three key steps: understanding your mortgage needs and options, getting pre-approved, and making the right decision.
2) The first step involves determining how much you can afford for a down payment, mortgage payments, fees and deciding on a mortgage term, amortization period, and whether to choose a fixed or variable interest rate.
3) The second step is to get pre-approved in order to understand what you qualify for before house hunting, and the third step is to consider all costs when deciding on the right mortgage.
This document provides answers to common questions for first-time home buyers. It discusses key terms like mortgages and notes, available programs for first-time buyers, the loan application and approval process, and differences between pre-qualification and pre-approval. It also outlines factors that determine credit scores, available loan types and their advantages, and estimated closing costs. Responsibilities during the lending process are noted as well, such as accurately reporting finances and not signing blank documents.
This document provides information about the homebuying process from a mortgage lender called Get A Rate Home Loans. It includes sections on understanding their loan process, documents needed for pre-approval, tips for homebuyers, and definitions of common real estate terms. The document is intended to educate potential homebuyers on working with this lender.
This document provides information on various homeownership topics including the mortgage process, types of mortgages, credit management, foreclosure, and protecting your investment. It defines key mortgage terms, explains fixed and adjustable rate mortgages, describes the components of a credit score and how to manage credit, outlines the foreclosure process and alternatives, and reviews different types of homeowners insurance. The document aims to educate homeowners and potential buyers on essential financial literacy concepts related to purchasing and maintaining a home.
THE ULTIMATE GUIDE TO BUYING & SELLING A HOME IN THE GREATER TORONTO AREAJusto Inc.
Welcome! For most people, buying or selling a home is the biggest financial transaction of their lives. Whether it’s your first time or not, the information in this ebook will help you make more educated decisions, avoid common mistakes, and could even help you save a great deal of money! Find out more at https://justo.ca/
The document discusses various topics related to housing loans and the housing crisis. It provides information on credit scores, different types of loans including credit cards, student loans, business loans, and home loans. It also discusses factors that contributed to the housing bubble such as rising home prices, subprime loans, securitization of mortgages, and the role of government agencies like Fannie Mae and Freddie Mac.
BUYING YOUR FIRST HOME - capitalhomelending.cacapitalhl
1) The document provides guidance on shopping for a mortgage by outlining three key steps: understanding your mortgage needs and options, getting pre-approved, and making the right decision.
2) The first step involves determining how much you can afford for a down payment, mortgage payments, fees and deciding on a mortgage term, amortization period, and whether to choose a fixed or variable interest rate.
3) The second step is to get pre-approved in order to understand what you qualify for before house hunting, and the third step is to consider all costs when deciding on the right mortgage.
The document provides an overview of the TRID (TILA-RESPA Integrated Disclosure) Rule, which integrates the mortgage disclosure forms required by the Truth in Lending Act and the Real Estate Settlement Procedures Act. As of October 3, 2015, there will be two new integrated disclosure forms - the Loan Estimate that combines the initial TILA and GFE disclosures, and the Closing Disclosure that combines the final TILA and HUD-1 settlement statements. The TRID Rule changes the responsibilities of lenders, title companies, and other settlement service providers regarding new disclosure forms, systems changes, business process changes, training, and monitoring requirements.
This document provides a brief overview and timeline of the TILA-RESPA Integrated Disclosure (TRID) rule. It explains that TRID combines several mortgage disclosure forms and outlines new requirements and timelines for providing the Loan Estimate and Closing Disclosure. Key points include: TRID goes into effect October 1, 2015; within 3 business days of receiving a mortgage application, lenders must provide a Loan Estimate, and it must be provided at least 7 business days before closing; the Closing Disclosure replaces and combines previous forms and must be provided 3 business days before closing. The document walks through a sample timeline for a hypothetical loan closing in October 2015.
The document discusses various options for homeowners facing foreclosure, including reinstatement, forbearance plans, selling the property, refinancing, mortgage modification, deed-in-lieu, bankruptcy, and pursuing a short sale. It notes that more than 70% of homeowners enter foreclosure without intervention and explains the foreclosure process and potential consequences of foreclosure and short sales like tax liabilities and credit impacts.
The document provides an overview of the new integrated mortgage disclosure rules issued by the CFPB that combine early TILA disclosures and the GFE into a Loan Estimate form and combine the HUD-1 and final TILA disclosures into a Closing Disclosure form. Key points include: the Loan Estimate must be provided within 3 business days of application and the Closing Disclosure must be provided 3 business days before closing; tolerances allow for some cost variations between estimates and closing; implementation of the new rules will require significant changes and is effective August 1, 2015.
First Time Home Buyer Class Sacramento CaliforniaHomeBoom.com
Learn about first time home buyer programs to purchase real estate. First time home buyer loan programs are our there to help you buy your first home. Down payment assistance and special government programs can help with closing costs. HomeBoom.com is a great place to search for the perfect house.
This document provides information about foreclosure and options for homeowners facing foreclosure. It discusses national foreclosure statistics, explains the foreclosure process, and outlines possible solutions for homeowners including reinstatement, forbearance plans, selling the property, refinancing, mortgage modification, deed-in-lieu, bankruptcy, and pursuing a short sale. Short sales are described as negotiating with a lender to accept less than the full loan balance at closing. Risks of short sales like tax liability and deficiency judgments are also covered.
Financial freedom through reverse mortgageProjects Kart
The document discusses reverse mortgages as a tool for financial freedom for senior citizens in India. It notes that housing wealth makes up a large portion of wealth for many elderly Indians and reverse mortgages allow them to access this equity to meet living expenses without having to sell their home. The document covers the concept and workings of reverse mortgages, including eligibility requirements, valuation, risks for lenders and borrowers, and the potential market size in India based on demographics and home ownership rates. It also discusses the objectives and methodology of a research study analyzing awareness and demand for reverse mortgages among Indian seniors.
This document presents a system dynamics model that compares the financial outcomes of renting versus buying a home. The model includes inflows and outflows of money and tracks assets, liabilities, and equity over time for both renting and buying scenarios. Parameters in the model are estimated using historical Croatian data but the model can be applied to any real estate market. Simulation results suggest that renting is optimal when there are no tax deductions for mortgage interest payments, but buying may be optimal when such deductions are available as they stimulate the housing market. The model provides a more comprehensive analysis of the renting vs. buying decision compared to simple comparisons of monthly rental costs versus mortgage payments.
The Global Wealth Homeownership and Wealth Education Initiativeameerelahee
The document provides information about credit building, mortgage basics, and homeownership. It defines key mortgage terms like principal, interest, fixed-rate mortgages, adjustable-rate mortgages, and discusses choosing the right mortgage. It also outlines the lending process and includes tips for money management, credit management, and protecting your home investment with insurance.
Mortgage Basics provides information about mortgage products and programs that will help real estate agents realize success. Topics include:
- when you need to ask for more time to close,
- property types and characteristics that might be more difficult to sell (and how to sell them),
- how to use various products/programs to help increase a buyer's purchasing power.
Dan Keller Mortgage Planning Concierge Meeting 2019Dan Keller
http://www.mymortgageguydan.com/apply . Every client deserves the best I have to offer and that not only involves a great mortgage experience, but additional information that will help them create wealth through the wisdom I've gathered along with the network of professionals I know.
The document discusses the benefits of a reverse mortgage for seniors aged 62 and older. A reverse mortgage allows homeowners to convert equity in their home into tax-free cash without having to make monthly payments. Borrowers can use the funds for supplemental income, paying off debts, home repairs, or leaving an inheritance. The loan does not become due until the borrower dies or moves out permanently, and the FHA insures that no debt passes to heirs.
The document provides information about the TRID (TILA RESPA Integrated Disclosure) rule which combines mortgage disclosure forms to help borrowers better understand loan fees, terms, and closing costs. Under the new rule, borrowers will receive a Loan Estimate form within 3 days of applying which estimates closing costs, and a Closing Disclosure form 3 days before closing which provides final costs. The timeline outlines the typical process from application to closing.
This workshop will help you gain a basic understanding of how the homebuying and home financing process works. So you’ll know what to expect and be better able to make informed decisions.
Dan Keller Mortgage Planning Guide For First Time Home BuyersDan Keller
The document provides an overview of potential sources of "turbulence" or challenges that may arise when obtaining a home loan. It lists 83 possible issues divided into those relating to the buyer/borrower (32 items), the seller (24 items), and the property (9 items). Some examples include the borrower losing their job or having incorrect information on their loan application, the seller backing out or being unable to clear liens, and issues with the property like unresolved repairs or the home not appraising for the agreed upon value. The overall message is that there are many potential complications that could delay or derail the loan process.
1. The document provides information about reverse mortgage loans for homeowners aged 62 and older. It explains that a reverse mortgage allows homeowners to convert home equity into tax-free funds without monthly payments as long as they live in the home.
2. The proceeds can be used for any purpose and are disbursed as lump sums, monthly payments, or a line of credit. The maximum loan amount depends on the home value, interest rate, and borrowers' age.
3. Borrowers retain ownership and there are no repayment requirements as long as terms are met, such as paying taxes and insurance. When the last borrower dies or moves out permanently, the loan balance must be repaid.
Dan Keller 2019 Mortgage Planning Packet for Home BuyersDan Keller
Seattle Mortgage Professional and top 1% in America Loan Officer shares his exclusive mortgage planning educational packet that he gives to all home buyer clients. How to get a great rate, how to ensure there are no hick-uos in the buying process, how to make the best financial choice when buying a home!
China coal industry development trend and investment strategic decision repor...Qianzhan Intelligence
The document provides an overview and analysis of trends in China's coal industry from 2013 to 2020. It discusses factors influencing the supply and demand of coal, forecasts supply and demand levels using mathematical models, and examines imports and exports and profit prospects. The analysis finds that while coal will continue to be a major energy source in China, its market share of total energy consumption will decline. The supply of coal is expected to exceed demand, putting downward pressure on coal prices. The report provides guidance to coal companies on adjusting to emerging trends to maintain competitiveness.
This short document contains a list of numbers from one to four, with each number on its own line and also written out in words. It provides a simple enumeration showing the progression from one to four in both numeric and written form across four lines.
The document provides an overview of the TRID (TILA-RESPA Integrated Disclosure) Rule, which integrates the mortgage disclosure forms required by the Truth in Lending Act and the Real Estate Settlement Procedures Act. As of October 3, 2015, there will be two new integrated disclosure forms - the Loan Estimate that combines the initial TILA and GFE disclosures, and the Closing Disclosure that combines the final TILA and HUD-1 settlement statements. The TRID Rule changes the responsibilities of lenders, title companies, and other settlement service providers regarding new disclosure forms, systems changes, business process changes, training, and monitoring requirements.
This document provides a brief overview and timeline of the TILA-RESPA Integrated Disclosure (TRID) rule. It explains that TRID combines several mortgage disclosure forms and outlines new requirements and timelines for providing the Loan Estimate and Closing Disclosure. Key points include: TRID goes into effect October 1, 2015; within 3 business days of receiving a mortgage application, lenders must provide a Loan Estimate, and it must be provided at least 7 business days before closing; the Closing Disclosure replaces and combines previous forms and must be provided 3 business days before closing. The document walks through a sample timeline for a hypothetical loan closing in October 2015.
The document discusses various options for homeowners facing foreclosure, including reinstatement, forbearance plans, selling the property, refinancing, mortgage modification, deed-in-lieu, bankruptcy, and pursuing a short sale. It notes that more than 70% of homeowners enter foreclosure without intervention and explains the foreclosure process and potential consequences of foreclosure and short sales like tax liabilities and credit impacts.
The document provides an overview of the new integrated mortgage disclosure rules issued by the CFPB that combine early TILA disclosures and the GFE into a Loan Estimate form and combine the HUD-1 and final TILA disclosures into a Closing Disclosure form. Key points include: the Loan Estimate must be provided within 3 business days of application and the Closing Disclosure must be provided 3 business days before closing; tolerances allow for some cost variations between estimates and closing; implementation of the new rules will require significant changes and is effective August 1, 2015.
First Time Home Buyer Class Sacramento CaliforniaHomeBoom.com
Learn about first time home buyer programs to purchase real estate. First time home buyer loan programs are our there to help you buy your first home. Down payment assistance and special government programs can help with closing costs. HomeBoom.com is a great place to search for the perfect house.
This document provides information about foreclosure and options for homeowners facing foreclosure. It discusses national foreclosure statistics, explains the foreclosure process, and outlines possible solutions for homeowners including reinstatement, forbearance plans, selling the property, refinancing, mortgage modification, deed-in-lieu, bankruptcy, and pursuing a short sale. Short sales are described as negotiating with a lender to accept less than the full loan balance at closing. Risks of short sales like tax liability and deficiency judgments are also covered.
Financial freedom through reverse mortgageProjects Kart
The document discusses reverse mortgages as a tool for financial freedom for senior citizens in India. It notes that housing wealth makes up a large portion of wealth for many elderly Indians and reverse mortgages allow them to access this equity to meet living expenses without having to sell their home. The document covers the concept and workings of reverse mortgages, including eligibility requirements, valuation, risks for lenders and borrowers, and the potential market size in India based on demographics and home ownership rates. It also discusses the objectives and methodology of a research study analyzing awareness and demand for reverse mortgages among Indian seniors.
This document presents a system dynamics model that compares the financial outcomes of renting versus buying a home. The model includes inflows and outflows of money and tracks assets, liabilities, and equity over time for both renting and buying scenarios. Parameters in the model are estimated using historical Croatian data but the model can be applied to any real estate market. Simulation results suggest that renting is optimal when there are no tax deductions for mortgage interest payments, but buying may be optimal when such deductions are available as they stimulate the housing market. The model provides a more comprehensive analysis of the renting vs. buying decision compared to simple comparisons of monthly rental costs versus mortgage payments.
The Global Wealth Homeownership and Wealth Education Initiativeameerelahee
The document provides information about credit building, mortgage basics, and homeownership. It defines key mortgage terms like principal, interest, fixed-rate mortgages, adjustable-rate mortgages, and discusses choosing the right mortgage. It also outlines the lending process and includes tips for money management, credit management, and protecting your home investment with insurance.
Mortgage Basics provides information about mortgage products and programs that will help real estate agents realize success. Topics include:
- when you need to ask for more time to close,
- property types and characteristics that might be more difficult to sell (and how to sell them),
- how to use various products/programs to help increase a buyer's purchasing power.
Dan Keller Mortgage Planning Concierge Meeting 2019Dan Keller
http://www.mymortgageguydan.com/apply . Every client deserves the best I have to offer and that not only involves a great mortgage experience, but additional information that will help them create wealth through the wisdom I've gathered along with the network of professionals I know.
The document discusses the benefits of a reverse mortgage for seniors aged 62 and older. A reverse mortgage allows homeowners to convert equity in their home into tax-free cash without having to make monthly payments. Borrowers can use the funds for supplemental income, paying off debts, home repairs, or leaving an inheritance. The loan does not become due until the borrower dies or moves out permanently, and the FHA insures that no debt passes to heirs.
The document provides information about the TRID (TILA RESPA Integrated Disclosure) rule which combines mortgage disclosure forms to help borrowers better understand loan fees, terms, and closing costs. Under the new rule, borrowers will receive a Loan Estimate form within 3 days of applying which estimates closing costs, and a Closing Disclosure form 3 days before closing which provides final costs. The timeline outlines the typical process from application to closing.
This workshop will help you gain a basic understanding of how the homebuying and home financing process works. So you’ll know what to expect and be better able to make informed decisions.
Dan Keller Mortgage Planning Guide For First Time Home BuyersDan Keller
The document provides an overview of potential sources of "turbulence" or challenges that may arise when obtaining a home loan. It lists 83 possible issues divided into those relating to the buyer/borrower (32 items), the seller (24 items), and the property (9 items). Some examples include the borrower losing their job or having incorrect information on their loan application, the seller backing out or being unable to clear liens, and issues with the property like unresolved repairs or the home not appraising for the agreed upon value. The overall message is that there are many potential complications that could delay or derail the loan process.
1. The document provides information about reverse mortgage loans for homeowners aged 62 and older. It explains that a reverse mortgage allows homeowners to convert home equity into tax-free funds without monthly payments as long as they live in the home.
2. The proceeds can be used for any purpose and are disbursed as lump sums, monthly payments, or a line of credit. The maximum loan amount depends on the home value, interest rate, and borrowers' age.
3. Borrowers retain ownership and there are no repayment requirements as long as terms are met, such as paying taxes and insurance. When the last borrower dies or moves out permanently, the loan balance must be repaid.
Dan Keller 2019 Mortgage Planning Packet for Home BuyersDan Keller
Seattle Mortgage Professional and top 1% in America Loan Officer shares his exclusive mortgage planning educational packet that he gives to all home buyer clients. How to get a great rate, how to ensure there are no hick-uos in the buying process, how to make the best financial choice when buying a home!
China coal industry development trend and investment strategic decision repor...Qianzhan Intelligence
The document provides an overview and analysis of trends in China's coal industry from 2013 to 2020. It discusses factors influencing the supply and demand of coal, forecasts supply and demand levels using mathematical models, and examines imports and exports and profit prospects. The analysis finds that while coal will continue to be a major energy source in China, its market share of total energy consumption will decline. The supply of coal is expected to exceed demand, putting downward pressure on coal prices. The report provides guidance to coal companies on adjusting to emerging trends to maintain competitiveness.
This short document contains a list of numbers from one to four, with each number on its own line and also written out in words. It provides a simple enumeration showing the progression from one to four in both numeric and written form across four lines.
E-learning refers to the use of electronic media and information and communication technologies to enable learning. It allows people to learn anytime and anywhere. There are two main types of e-learning - synchronous which occurs in real-time, and asynchronous which allows learners more flexibility in their schedule. E-learning delivery methods include online lectures, prerecorded videos, online courses, and collaborative tools like blogs and forums. Benefits include convenience, cost-effectiveness, flexibility, and the ability to learn at one's own pace. However, some learners may feel isolated or lack motivation without in-person interaction and instruction.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
China entertainment industry indepth research and investment opportunity reportQianzhan Intelligence
This document provides an overview and in-depth analysis of the development of China's entertainment industry. It discusses the industry's categories, elements, status, issues, strategies and research methods. It also analyzes the policy, economic, social, technological and marketing environments influencing the industry. Key regions and leading corporations in the entertainment sector are examined. Trends, investment models, and forecasts for the future prospects of China's entertainment market are also presented. The document contains over 10 chapters and 60 tables of statistical data on various aspects of the country's entertainment industry.
Flat Sonic traveled throughout Asia, visiting landmarks and experiencing the culture in South Korea, Cambodia, the Philippines, China, Myanmar, Singapore, and Japan. Some highlights included seeing the DMZ between North and South Korea, exploring Angkor Wat in Cambodia, watching the sunset in Cebu in the Philippines, hiking the Great Wall of China, taking a hot air balloon ride in Bagan, Myanmar, and learning to cook in Inle Lake. The document expresses gratitude to Seth for keeping Flat Sonic company on his travels throughout Asia.
Open source as a convivial and democratic mode of productionLouis Florin
This document discusses open source and commons-based peer production. It describes peer production as large-scale collaboration that is decentralized and motivated by social factors rather than markets or management. Peer production enables modular, granular contributions that can be easily integrated at low cost. The document also discusses Ivan Illich's concept of "conviviality" as individual freedom through personal interdependence. Commons-based peer production can materialize virtues like autonomy, creativity, altruism, and cooperation. However, the relationship between peer production and virtues is not directly causal and remains normatively attractive rather than conclusively proven.
China industrial gas industry market forecast and investment strategic planni...Qianzhan Intelligence
The document provides an overview and analysis of China's industrial gas industry from 2011-2017. It discusses key topics like the industry definition, value chain, market environment, development status, economic indexes, supply and demand balance, imports and exports, and competitive structure. The analysis is based on extensive data collection and aims to help companies understand industry trends and make informed business decisions.
Kolba, the UN Development Programme in Armenia's social venture incubator, works with citizens and public services to address big social problems. In this presentation, the incubator is placed within the context of Nesta's framework for innovation and standards of evidence.
Q4: Who would be the audience for your media product?chloeharrisoon
This document discusses choosing an audience age range of 15-24 for an R&B music magazine. Younger audiences below 15 are deemed inappropriate due to potentially explicit lyrics and images of barely clothed male and female artists that could be seen as dominant, patronizing or seductive. University students aged 24 and under are identified as a suitable target audience as they listen to R&B music socially and are appearance-focused, finding inspiration from scantily clad artists that could motivate magazine purchases.
Evaluation: UNDP Armenia's Approach to InnovationGeorge Hodge
FutureGov's beautifully structured and insightful evaluation of UNDP Armenia's innovation lab. A good read for anyone interested in public sector reform.
Q5: How did you attract/address your audience?chloeharrisoon
The document summarizes how the authors attracted their audience for their magazine covers. They used female models to appeal to both female and male readers. They also featured solo artists as over 50% of survey respondents preferred them. The language was informal to involve readers. Both covers had a female solo artist, informal language, puffs, and the same masthead in different colors to maintain the shared brand identity while differentiating the issues. The similarities reassured audiences they would get consistent quality from the magazine brand.
Este documento presenta la información básica de un estudiante de la Universidad Estatal de Milagro. Incluye el nombre de la estudiante Ginger Estefanía Bravo Merchán, la docente a cargo Lcda. Elvia Victoria Briones, y los detalles del área y paralelo de estudios de la alumna que es el A5 M01.
This document provides an overview of autism, including:
- A brief history noting its identification in 1943.
- Statistics indicating its increasing prevalence, now affecting 1 in 150 individuals.
- Etiology involving both genetic and environmental factors.
- Diagnostic criteria outlined in the DSM-IV involving impairments in social interaction, communication, and restricted behaviors.
- Treatment approaches including behavioral therapies like ABA and biomedical therapies targeting underlying medical conditions.
This guide helps consumers navigate the mortgage process in 8 steps: 1) defining what is affordable, 2) understanding your credit, 3) choosing between fixed and adjustable rates, 4) selecting a down payment amount, 5) understanding how points affect interest rates, 6) shopping with multiple lenders, 7) choosing a mortgage, and 8) avoiding pitfalls. The goal is to find the best mortgage to fit the consumer's financial situation through informed decision making at each step.
This document provides a step-by-step guide to help consumers choose the best mortgage. It discusses:
1. Defining what is affordable, understanding your credit, choosing between fixed and adjustable rates, selecting the right down payment, and understanding how points affect interest rates.
2. The importance of understanding your credit report and score to qualify for the best rate. Correcting any errors can improve your score.
3. Different types of mortgages and their tradeoffs (fixed vs adjustable rates), avoiding risky features like balloons payments or prepayment penalties.
4. Factors that determine the right down payment amount depending on the borrower's situation and goals.
The overall document aims
This document provides a step-by-step guide to help consumers choose the best mortgage. It discusses:
1. Defining what is affordable, understanding your credit, choosing between fixed and adjustable rates, selecting the right down payment, and understanding how points affect interest rates.
2. The importance of understanding your credit report and score to qualify for the best rate. Correcting any errors can improve your score.
3. Different types of mortgages and their tradeoffs (fixed vs adjustable rates), the importance of understanding prepayment options, and being wary of risky loan features like balloons payments or prepayment penalties.
4. Steps to take like getting estimates of total monthly costs, calculating the
The document provides an overview of the home buying process in 3 sentences or less:
The presentation outlines the key steps in the home buying process including getting pre-approved, finding a home, making an offer, finalizing financing details, completing inspections, and closing on the purchase. It also discusses determining financing options, assessing affordability, and maintaining the home after purchase. The presentation aims to educate home buyers on navigating the process and emphasizes working with a mortgage consultant for assistance.
You’re thinking of buying a home? Congratulations -- it’s an exciting
process. And it can be a lot of fun. You get to envision the type
of lifestyle you want for yourself (and your family). Do you want
a beautiful two-story home close to your work? Do you want a
modern, stylish condo in the heart of downtown? Are you yearning
to live near the beach, the mountains, restaurants, good schools,
museums, or family?
One of the greatest things about purchasing your own home is
that you get to make it yours. Even before you move in, you’re in
charge of making the decisions about which home you will buy.
It’s a powerful feeling -- having total control. But it can also be a bit
overwhelming, especially when you’re doing it for the first time.
That’s why we wrote this guide. We want to make purchasing a home
less scary and give you the confidence to move forward through
each step of the process -- from beginning to end, when you move into your new home!
This document summarizes the key steps and considerations for first-time homebuyers. It discusses getting pre-approved for a mortgage, choosing between government and conventional loans, understanding closing costs and down payment requirements, working with a real estate agent and loan officer, and going through the home buying process from offer to closing. The overall message is to educate yourself on your financing options and work with professionals to ensure you purchase a home that fits within your budget and financial goals.
The document discusses net worth and how it is calculated. It defines net worth as assets minus liabilities. Assets are divided into liquid, semi-liquid, and non-liquid categories. Liabilities are divided into short-term and long-term debts. The document also discusses debt-to-equity ratios and strategies for increasing net worth such as higher investment returns, reducing debt, and saving more regularly. Two examples of calculating net worth statements and debt-to-equity ratios for individuals are provided.
The document provides information about the home buying process for first-time homebuyers. It discusses determining how much home you can afford, the importance of credit, mortgage options including government and conventional loans, closing costs, and the steps involved in the mortgage application and approval process. The overall goal is to educate homebuyers so they can choose the right mortgage program and home to fit their needs and budget.
The document discusses net worth and how to calculate it. Net worth is calculated as total assets minus total liabilities. Assets are divided into liquid, semi-liquid, and non-liquid categories. Liabilities are divided into short-term and long-term debts. The document provides an example of calculating an individual's net worth and debt-to-equity ratio. It recommends strategies for increasing net worth such as higher investment returns, reducing debt, and saving more regularly.
HOW CANADIAN RENTERS CAN BENEFIT FROM RENT TO OWN OPTIONSStreetwise Homes
This presentation goes through some of the many benefits that Canadian Renters could have by choosing to use Rent to Own to Purchase their home. Things such as having your rent go towards the purchase, Repairing damaged credit, Not having the home price climb out of reach.
This document defines and explains common real estate investment terms in plain language to help readers better understand real estate investing. It defines terms like mortgage, closing costs, equity, adjustable-rate mortgage, and others. The definitions are concise but thorough, explaining each term and providing examples. The overall document aims to demystify real estate investing terminology.
1. The document is a presentation on home buying from Bank of America that covers topics like determining if homeownership is right, getting prequalified, understanding credit, affordable mortgage programs, and the home buying process.
2. It provides information on calculating how much home buyers can afford and borrow, the importance of credit for getting approved, and resources for homebuyer education and counseling.
3. Bank of America promises personal service and affordable loan options to help buyers achieve their goal of successful homeownership.
This financial report was prepared for Annette and David Morales by Michael Brieske and Stephen Good to assist them in purchasing a new home in Palm Springs, CA. It includes details of two home options that fit their budget and needs. Home A at 2318 Acacia Rd E has 4 bedrooms and 3 bathrooms for $168,900, with estimated monthly costs of $1,185.21. Home B at 475 Village Square West has 3 bedrooms and 3 bathrooms for $169,500, with estimated monthly costs of $1,187.03. The report also provides the Morales' financial details and calculations for mortgage amounts.
This document provides an overview of mortgage qualification guidelines in Canada, including income requirements, down payment amounts, equity sources, and debt service ratios (GDS and TDS). Key points:
- Common income sources considered include employment, self-employment, pensions, and child tax credits, provided they can demonstrate consistency.
- The minimum down payment is typically 5% but increases to 10% or 20% for homes over $500k or $1M. Larger down payments reduce mortgage costs.
- Equity can come from sources like selling another property, savings, RRSPs, gifts, or investments.
- GDS measures housing costs as a percentage of income and is typically capped at 32-35
This document provides information to help guide first-time home buyers through the process of purchasing a home in Canada. It covers determining if homeownership is the right choice, assessing financial readiness, understanding financing options like mortgages, finding the right home, making an offer, and maintaining a home after purchase. The guide stresses evaluating costs, creating a budget, understanding credit, getting pre-approved for a mortgage, and bringing necessary documents to mortgage meetings. Overall, it aims to educate buyers on essential steps and considerations for purchasing a home.
The document discusses buying a home, including common fears about the process and facts to address those fears. It outlines eight steps to successful home ownership: deciding to buy, hiring an agent, securing financing, finding a home, making an offer, performing due diligence, closing, and protecting your investment. Key aspects of each step are summarized, such as different financing options, components of a purchase offer, and responsibilities during closing. The importance of ongoing home maintenance is also emphasized.
The document provides information about the home buying process for first-time homebuyers. It discusses determining an affordable mortgage amount, the importance of good credit, different types of loans including government and conventional loans, and what to expect during the application and closing process. The overall goal is to educate homebuyers on choosing the right mortgage program and walking through the steps to purchase a home.
The document provides information about buying a home, including fears about affording it and facts addressing those fears. It outlines an $8,000 tax credit for first-time home buyers and eligibility requirements. It then discusses the eight steps to home ownership, including deciding to buy, hiring an agent, securing financing, finding a home, making an offer, due diligence, closing, and protecting the investment.
Similar to LowestRates.ca Presents the Mortgage Journey, a Step-by-Step Home Buying Companion for Canadians (20)
Recent Trends Fueling The Surge in Farmhouse Demand in IndiaFarmland Bazaar
Embarking on the journey to acquire a farmhouse for sale is just the beginning; the real investment lies in crafting an environment that contributes to our mental and physical well-being while satisfying the soul. At Farmlandbazaar.com, India’s leading online marketplace dedicated to farm land, farmhouses, and agricultural lands, we understand the importance of transforming a humble farmland into a warm and inviting sanctuary. Let's explore the fundamental aspects that can elevate your farmhouse into a tranquil haven.
Stark Builders: Where Quality Meets Craftsmanship!shuilykhatunnil
At Stark Builders our vision is to redefine the renovation experience by combining both stunning design and high quality construction skills. We believe that by delivering both these key aspects together we are able to achieve incredible results for our clients and ensure every project reflects their vision and enhances their lifestyle.
Although we are not all related by blood we have created a team of highly professional and hardworking individuals who share the common goal of delivering beautiful and functional renovated spaces. Our tight nit team are able to work together in a way where we pour our passion into each and every project as we have a love for what we do. Building is our life.
Serviced Apartment Ho Chi Minh For RentalGVRenting
GVRenting is the leading rental real estate company in Vietnam. We help you to find a serviced apartment for rent in Ho Chi Minh & Saigon. Discover our broad range of rental properties in Vietnam.
For more details https://gvrenting.com/
AVRUPA KONUTLARI ESENTEPE - ENGLISH - Listing TurkeyListing Turkey
Looking for a new home in Istanbul? Look no further than Avrupa Konutlari Esentepe! Our beautifully designed homes provide the perfect blend of luxury and comfort, making them the perfect choice for anyone looking for a high-quality home in the city.
With a wide range of apartment types available, from 1+1 to 4+1, we have something to suit every need and budget. Each apartment is designed with attention to detail and features spacious and bright living areas, making them the perfect place to relax and unwind after a long day.
One of the things that sets Avrupa Konutlari Esentepe apart from other developments is our focus on creating a community that is both comfortable and convenient. Our homes are surrounded by lush green spaces, perfect for enjoying a peaceful stroll or having a picnic with friends and family. Additionally, our complex includes a variety of social and recreational amenities, such as swimming pools, sports fields, and playgrounds, making it easy for residents to stay active and socialize with their neighbors.
https://listingturkey.com/property/avrupa-konutlari-esentepe/
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Dholera Smart City Latest Development Status 2024.pdfShivgan Infratech
Explore the latest development status of Dholera Smart City in 2024. Discover the progress, infrastructure, and future plans of India's first greenfield smart city.
BEST FARMLAND FOR SALE | FARM PLOTS NEAR BANGALORE | KANAKAPURA | CHICKKABALP...knox groups real estate
welcome to knox groups real estate company in Bangalore. best farm land for sale near Bangalore and madhugiri . Managed farmland near Kanakapura and Chickkabalapur get know more details about the projects .Knox groups is a leading real estate company dedicated to helping individuals and businesses navigate the dynamic real estate market. With our extensive knowledge, experience, and commitment to excellence, we deliver exceptional results for our clients. Discover the perfect foundation for your agricultural aspirations with KNOX Groups' prime farm lands. These aren't just plots; they're the fertile grounds where vibrant crops flourish, livestock thrives, and unique agricultural ventures come to life. At KNOX, we go beyond selling land we curate sustainable ecosystems, ensuring that your journey toward agricultural success is seamless and prosperous.
LowestRates.ca Presents the Mortgage Journey, a Step-by-Step Home Buying Companion for Canadians
1. Rates
FIND THE LOWEST RATES ANYWHERE ... INSTANTLY!
The Mortgage
Journey
n
••
_I
1-,
~
2.
3. Part One: Big Decision Time
·--•Rates ·
AND TI-lE LOWEST RAlES .ANYWHERE... INSTANID'l
4. -
Part One: Big Decision Time
The good news is that it's never been
( You should also think about whether
easier to find basic mortgage
you're up for the routine maintenance
information. From bank websites to
and repairs that come w ith home
c
0
ownership. Chores like shoveling
iu financial blogs, newspapers to mortgage ~ cutting grass and cleaning eaves snow,
brokers, learning about mortgages is as
~
::s
"0
troughs are not for everyone. If you
w easy as turning on your computer or
picking up the phone.
want to contract out these services you
should have enough money left in your
budget to comfortably pay for them:
( Wh ile taking the first step on your
figure at least $200 a month at a
mortgage journey means education L minimum.
learning about how mortgages work - it
also means introspection, where you
think about whether you're ready for
home ownership and the comm itments
that come with it.
---------------------
As w ith most big decisions, introspection
is the hard part!
l
-(To start, you' ll want to consider what
('"
c
<U
a:
l
your next two, three - even five years
will probably look like. While no one has
a crystal ball, if you think you might be
moving for a job, retiring, going back to
school, etc. , then taking out a mortgage
might not be the right financial move.
Your timeframe for staying in a home is
important because buying and selling
property brings substantial transaction
costs. You also don't want to be
exposed to the caprices of the housing
market. If you know you' ll need to sell in
a year or two, buying could make you
vulnerable to a market downturn.
LowestRate$'~.
FW1l<ELCNSTF«1BS~.sf.wll>1
5. Part One: Big Decision Time
Key Benefits of Home Ownership
- Allows you to build equity over time
-
- Allows you to make improvements to the
property
Of course, you won't get far on your
mortgage journey without income.
c:
::J
0
E
~
...
~
&
~
....
11)
::J
..,
....
0
z
..
Q)
E
0
(,)
.E
Here, you' ll need to decide whether
your household's monthly income is
stable enough to handle regular
mortgage payments. Borrowers too
often focus on the total dollar amount of
their income rather than the stability of
the income stream. In general, two or
more sources of income are better than
one, and regular income is preferable to
income that fluctuates greatly. There are
no absolutes here, but income security
and stability is definitely something to
think about as you start the mortgage
journey.
- A home's value generally rises over the
long term
- A home is a tangible asset in today's
uncertain times
- Home ownership is a great way to put
down roots in your community
- It's yours!
Key Drawbacks of Home Ownership
- Requires a substantial downpayment
- Substantial closrng costs on both
purchase and sale
- Requires maintenance, repairs and
upkeep
- Owner must pay property taxes, insurance
and utilities
- Real estate cannot necessarily be sold
quickly; vulnerable to market fluctuations
- Substantial interest rate risk with variable
mortgage products
In the end, the first step of the mortgage journey is about looking yourself in the mirror as
much as it is about crunching numbers.
7. l=-=~J
Part Two: Figuring Out Your Budget
-
The Gross Debt Service ratio is based on a simple princi~
a borrower's monthly housing costs shouldn't be more than 32
percent of their gross monthly income.
0
:s
a:
Q)
u
·~
So what constitutes a monthly housing cost? In the eyes of
Canadian lending institutions, housing costs are monthly
mortgage payments, including both principal and interest,
heating expenses, property taxes, and condo fees (calculated at
50%) where applicable.
~
....
.Q
Q)
The Total Debt Service ratio takes into account your total
monthly obligations from all sources. TDS includes your
monthly housing costs, plus any other debt payments,
including credit card bills, car loans, lines of credit, student
loans and other personal debts. Here again the rule is simple:
your total monthly debt payments should not exceed 40
percent of your gross monthly income.
Q
GDS and TDS Calculations
Here is an example of a GDS Calculation:
Here is an example of a TDS calculation:
$1,000 Mortgage Payment
$300 Heating Expenses
$400 Property Taxes
+ $300 Condo Fees
$2,500 Housing Costs
$200 Credit Card Bill
+ $300 Car Payment
$3,000 Total Monthly Obligations
$2,000 Monthly Housing Obligations
Monthly Housing Obligations $2,000
Gross Monthly Income $8,000
Total Monthly Obligations $3,000
Gross Monthly Income $8,000
= 25 % GDS
Divide your monthly housing obligations by your gross monthly
income. A mortgage applicant with the above numbers would
almost surely qualify: they are well below the 32 percent GDS
threshold.
II
= 37.5% TDS
Divide your monthly housing obligations by your gross monthly
income. Once again, a borrower with these numbers should qualify:
well below the 40 TDS threshold.
II
II
Banks take your GDS and TDS together to arrive at a final lending decision. These ratios are standard but not absolute; borrowers
with superb credit and an extremely large down payment may be able to qualify even if they breach the 32/40 thresholds.
8. I
j
Part Two: Figuring Out Your Budget
It takes time to save all that money!
Nonetheless, you can 't finalize your
budget until you know rough ly how
large your downpayment will be.
First-time home buyers are allowed to
withdraw up to $25,000 from their
Registered Retirement Savings
Plans (RASP 's) to put toward a
downpayment under the Home Buyers'
Plan. The money can be taken out tax
free but must be completely repaid with in
i 5 years. This is a great tool for
Canadians taking their first mortgage
journey.
-
As a general rule, it's wise to muster as
large a downpayment as you can so
that you minimize CMHC premiums and
keep your loan as small as possible.
You should also have cash available for
closing costs, which include land
transfer taxes, legal fees, title
insurance and in some cases a land
survey. As a rule of thumb, buyers
should have at least 5 percent of their
prospective home's purchase price
available for closing costs and
unforeseen contingencies.
lp :Q $~5,000
'frQw:P yQur RRSP!
To see a list of closing costs, click here
or go to page i 9 .
If your downpayment is less than 20
percent of the purchase price, you
will need CMHC mortgage insurance
by law. Mortgage insurance protects
lenders against defaults and allows
borrowers to purchase homes with as
little as 5 percent down. As with all
forms of insurance, premiums must be
paid, and the CMHC currently charges
between 0.5 and 2.9 percent of the
total loan amount, depending on the
size of the down payment and the
perceived riskiness of the borrower. The
smaller the down payment, the higher
the premium.
Once you've taken the time to tally up your available funds and figure out how much
mortgage you can afford, you can set a budget that you're comfortable with and start
shopping for a home.
Now you're ready for the fun part - house hunting!
9. Part Three: Preparing Your House Hunt
FIND n-E LOWEST RAlES ANYM-!ERE. .. INSTANTL.Y!
10. Part Three: Preparing Your House Hunt
-
ffilemished credit can stop your
mortgage journey in its tracks. That's
why you have to check your credit report
very early in the home-buying process.
t:
0
0.
I»
a:
0
...
:0
f
0
...
:l
~
I»
.5
E
m
)(
w
Canadians can get their credit report at
either transunion.ca or equifax.com for
a small fee. Check the score and read
the report for any unexplained notations
or factual errors. Generally, a score of
over 600 is considered good, while a
score above 750 is deemed to be
excellent.
Document Checklist
Required documentation does vary slightly from lender to lender, but you'll
definitely need:
D An employment letter with your employer's name, address, current
telephone number, HR contact and your length of employment.
D A pay stub or letter verifying your compensation.
D Two years' Notice of Assessments from your tax return if self employed.
D Most recent T2 statements.
Don't be afraid to call the credit bureau
if you fi nd inaccuracies in the report I ~ou'll want to sort out any issues as
~ uickly as possible.
D Two months of bank statements.
D All investment statements, including account balances and the current
market value of all financial assets, such as stocks and bonds.
D RSP statements.
~ ( Chasing down financial documents i~
:6
~
{!.
~
•
E
:;,
8
Q
...
anathema to all but the most organized
home buyers, but it still has to be done.
Before you engage a lender for
pre-approval, you should get copies of
all required personal and financial
information . Usually, digital versions such
as scans or PDFs will suffice.
:l
~
~
(!)
LowestRate$'..,
-...nt>1
AI-OT>£U).<,mfR<ITE!3~..
D All liability statements, including credit card balances, line of credit statements, lease agreements, loan agreements, and alimony and child support,
where applicable.
D Proof of 10, including your social insurance number and valid government-issued photo 10 with your current address.
11. Part Three: Preparing Your House Hunt
l
( Getting pre-approved w lihelp you
i
immensely as you begin your house
hunt. You'll have the confidence of
knowing that a bank has analyzed your
finances and is willing to lend you a
specific amount of money to purchase
a home. You' ll also be in a better
bargaining position when it comes time
to make an offer.
What is Amortization?
The process of paying off a loan over a period of time by making regular
payments toward both interest and principal. The amortization period is the
total amount of time it will take to pay off the loan. Most mortgages in Canada
have an amortization period lasting 25 years.
What is a Term?
Your lender will want to know the
approximate size of your downpayment
and the kind of mortgage you want. By
now you've familiarized yourself with
mortgages.
The length of time a borrower and lender must abide by the provisions of the
mortgage agreement. Such provisions include the interest rate to be paid and
the method in which it is calculated. the payment schedule, as well as other
details such as prepayment options, break fees, etc. Most lenders offer terms
ranging from 6 months to 10 years, with 5 year durations being the most
popular in Canada.
--------------------------------------~
You should know the amortization
period you want (e.g. 20 years) and the
term you'd like (e.g. I 0-year fixed) . You
can visit our help centre if you need a
refresher on the different mortgage
products available to Canadians.
Once you qualify, your lender will issue
you a w ritten confirmation of the
pre-approval. Most lenders will allow
you to lock in your interest rate for 90 to
120 days while you search for a home.
This is called a rate hold. Insist on one:
G want to be protected if rates move
Y?U
higher!
LowestRateSJ..,
AICTI-E!D...e!TIWIE~.. r<STA'III>I
j
With your prep work complete you'll be ready to visit open houses and comb
through listings with confidence. Having a pre-approval in your back pocket
allows you to move quickly and decisively when a great property turns up.
12. Part Four: The House Hunt
•
Rate~ ,
FND THE LONEST RATES ANYWHERE... NSTANTLY!
13. Part Four: The House Hunt
8.
0
0
Cf)
e
0
Figure out what your housing needs wil~
be both now and some time into the
future. You can do this by asking
yourself some fundamental questions:
J
:E
C)
5
s
'tJ
•
c
:::::l
(!)
g)
:s
0
:I:
- How much indoor space do I need?
- How much outdoor space will I need?
- How many bedrooms and bathrooms
should my home have?
- What features do I need?
~
='
~
....
::s
....
(I)
~
('IJ
•
:iE
C1)
5
>(!)
~
::::J
(/)
i o e oncirnJe,
~!ect
- What neighbourhoods work for my
needs and budget?
CL.
-
REALTORS ~
~ real estate
on.e of the lillla belol<J.
ft Residential Properties
... Commertiol Properties
~ lnlernolr Properties
onol
[B REALTOR• Sto"h
I]! How REAlTORS~ Help
It's important to get an idea of what
different homes are worth in the areas
you're interested in. The Canadian Real
Estate Association has an excellent
Multiple Listing Service website,
Realtor.ca. You can search properties
by map and filter your results by price,
available parking, etc.
[B REAlTORS Core•
m
~
l'AGENT connait
le marthe de l'~r!
PoiW cel'lrinuer, sileC'tionl'ler un
de 5 1ien~
ci-d-euoo.>s.
ft Propri~s re~denlielles
1ft Propriet.s <ommertioles
~ Prop~s rnkHnofionoles
[!3 Reperer un ogenl imnrobilier
£B REAlTORS Core~
14. Part Four: The House Hunt
..
c
CD
a
<t
Q)
•
1ii
1;)
w
(0
(I)
a:
cu
...
(I)
<.!'
fl,
c
~
•
(%)
>
Cl)
(fJ
~
0
l:
c
8.
0
Agents have access to information that
is otherwise hard to find, like the recent
selling prices of other homes in the
neighborhood, and how many days
those homes were on the market. While
it's certainly possible to buy a home
without an agent, most Canadians still
l :ose to work with one when they
rt their house hunt.
Agents can help you in a variety of
ways, including:
- Informing you on current market
conditions.
- Previewing properties to save you
time.
- Arranging showings.
- Drafting a purchase agreement.
- Providing you with advice along the
, way.
I
r Many Canadians find their agents
through referrals from friends or family.
Checking out the "For Sale" signs in the
neighbourhoods you're interested in is
another tried and true method of finding
a real estate agent.
A great way to get a feel for a
prospective agent is by visiting some
of their open houses. You' ll be able to
tell a lot about their manner and
professionalism from this type of
interaction. You' ll also be able to see if
they stage their homes well .
In the end, an agent has to pass that
essential 'gut check. ' Do you feel
~omfortable w ith them?
(Yes, it's time to hit the open house
circuit! The more homes you see, the
better you' ll get at judging their relative
value, because you' ll have a good basis
for comparison. Also remember to
follow up w ith your realtor on the final
sale prices of the homes you have
already seen. This will tell you how hot
l the market really is and how accurately
altors are pricing their listings.
LowestRate$'.e•
fN)TI-£~-.aTRA1ESHJMt£FE... NST.cNJ'D1
You want to spend your mortgage dollars as wisely as possible.
That's why taking a smart, thorough approach to house hunting is
so important.
15. Part Five: The Offer
AND THE LONEST RATES ANYWHERE .. INSTANTLY!
16. Part Five: The Offer
Once you've decided to buy a house,
you' ll need to submit an Agreement of
Purchase and Sale to the seller. The
Agreement of Purchase and Sale is
basically what it sounds like: a legally
binding document between the buyer
and seller of a property setting out the
terms of the transaction.
This is where working with a real estate
agent can be really helpful, because
they know the process well and should
have all of the required paperwork you
need.
Like all contracts, you should read the
Agreement over very carefully before
you submit it, because the terms are
binding. You may even want to have it
reviewed by a lawyer or notary to make
sure it is complete and says what you
think it says.
If you have a real estate agent, they will
most likely present your offer to the
sellers and the sellers' agent on offer
day.
Generally the offer is either accepted or
sent back with a counter offer.
Occasionally it is rejected outright. W ith
a counter offer, the seller usually asks for
a higher price or a change in the terms
of the agreement. You can either agree
to the new terms, make a counter offer
of you r own, or walk away from the
~urchase.
.
j
~--------------------------
a..
]
~
::
~
(/1
e
a.
(I)
~
If you live in certain Canadian cities,
offer day can be a stressful,
pressure-packed occasion. You'll likely
be one of several bidders interested in
the property and you could even face
the temptation to enter a bidding war
w ith the other potential buyers. Here too,
working with an experienced real estate
agent can really come in handy - they
should be able to assess whether or not
you have a likely shot at getting the
house, and they' ll be able help you
decide if bidding up the price makes
sense.
In most cases, bidding wars are to be
avoided, but each offer is unique. The
most important thing to do is to keep a
cool head and not get emotional about
t he property in question. You don't want
to end up overpaying or spending more
on your house than you can reasonably
afford.
If your offer is accepted you ' ll need to
supply the deposit within 24 hours
usually. Deposits can range from 5 to
I 0 percent of the purchase price. Have
your check ready!
Having an offer accepted is one of the most thrilling parts of the mortgage
journey- it's a moment you will remember for a long time.
18. -
Step 1: Select the term option you want
Part Six: The Transaction
( once you have a signed Offer of ~
Purchase and Sale in hand, you need to
contact your lender. They will verify your
financial information and prepare your
application for final approval by the
underwriting department.
Your lender may also ask you to provide
a property appraisal and land survey.
This lets them verify the value and
legitimacy of the property that the
mortgage funds will be secured against.
c
0
u;
·u
~
.~
CJ
c
c
u.
1'0
<
l
)
(As the final approval is being
)
processed, you'll also need to finalize
I
wh ich mortgage product you are taking.
Even though you've already spent some
time learning about mortgages, making
the final decision is often difficult. You'll
need to really think about how much
interest rate security you require and
how long you want the mortgage term
to be.
Keep things simple by breaking your
decision down into steps:
'--
The term is the amount of time that you are bound to the conditions of the current
mortgage contract. Your term sets out all aspects of the mortgage, including interest
rates, payment options, etc. In Canada, terms usually last from 6 months to 10 years.
At the end of the term the contract expires and you can renegotiate a new term at that
time. Terms can be open or closed - open terms allow you to pay off the mortgage at
any time, making them an ideal choice if you are going to sell your home. You can also
usually convert to a closed term at any time. Closed terms lack this flexibility: they place
restrictions on how much of your loan you can pay off every year, and charge large
penalties for discharging your mortgage early.
Step 2: Select your mortgage interest rate structure
The main choice here is whether to go with a variable or fixed rate. You can learn more
about each option in our help centre.
Variable rates tend to be lower but rise or fall based on market conditions. Most variable
rates are tied to the Bank of Canada overnight rate. When the Bank raises this rate,
your mortgage interest rate will rise too. Fixed rates stay the same for the duration of
the term. You get security and predictable payments, but your interest rate will be
(slightly) higher. The longer the term, generally the higher the fixed rate will be.
Step 3: Select your amortization period
This is the total period of time until the loan is paid off in full . In Canada, most borrowers
opt for a 25 year amortization, but you can also select other durations. Amortizations
lasting 15 years are popular with those who want t o pay off their mortgage quickly. Of
course, the shorter the amortization period, the higher your monthly payment will be,
because you are paying the loan off more quickly.
Step 4: Select your payment schedule
Even though most people think of mortgage payments as being made monthly, you can
repay the loan bi-weekly or weekly as well. In fact, more frequent payments can reduce
your interest costs and allow you to pay off your mortgage months sooner!
LowestRate$1c
fN>THEt...OI.e:ITAA1E8~.. 1NST
PNibt
19. Part Six: The Transaction
In the period between offer day and
closing day, there are a lot of loose
ends to take care of. You may want to
have a home inspection done, to make
sure the house is structurally and
mechanically sound. Home inspection
agencies vary by region, but you should
make sure they are fully licensed and
come with strong recommendations.
Your real estate agent will likely be able
to provide you with some names.
You'll also need to make arrangements
for movers, as well as electricity, cable
and gas hook-ups, etc. Most Offers of
Purchase and Sale have one or two
viewings written into the agreement,
I~here you can view the property again
~ see what you'll need for it.
o
( You probably can't wait to get to
"'
closing day - that's when you finally
obtain legal possession of the property.
(I)
Both you and the seller will have to go
0
0
in to your respective lawyers' offices to
en
sign a raft of legal papers on that day.
n
·=
rn
.2
0
Your lender will transfer your mortgage
funds to your lawyer, who will in-turn
transfer the money to the seller or the
seller's lawyer.
G
j
You'll have to provide your down
payment (minus the deposit) to your
lawyer, as well as most of the closing
costs.
Of course, you've already set money
aside for closing costs, which can be
substantial. You should have funds
available for a variety of expenses,
including:
.
----------------~
Closing Costs
Land Survey: $800-$2500. Some lenders require a new survey to outline the
boundaries of the property.
Downpayment. Usually 5 to 25 percent of the purchase price, minus whatever
deposit you've already paid.
Mortgage Insurance. If your downpayment is less than 20 percent of the purchase
price, you'll have to pay a mortgage insurance premium, at 1. 75-2.75 percent of the
mortgage value.
Land Transfer Tax. One of the biggest closing costs there is, at .5 to nearly 4
percent of the purchase price, depending on where the property is located.
Legal Fees and Disbursements: $500-$1500. You'll need a real estate lawyer to
handle all the paperwork.
Title Insurance: $100-$400. This insures the lender's mortgage funds if there is a
dispute about the ownership of the property.
HST on all services related to the purchase of the home. Also applies to the
purchase price of a newly built home. Must be paid in cash at the time of closing.
LowestRateSJ.c.
FWll<ELO.<STAAlES-.. ~
Once the funds have been received, the seller's lawyer will send the keys to your
lawyer, who will send them along to you when the deal closes. You'll also be
given a copy of the deed. Congrats -you now own the home!
20. Part Seven: Paying Down Your Mortgage
Rates
AND 'THE LO'vVEST RATES ANYWHffiE... NSTANTLY!
21. Part Seven: Paying Down Your Mortgage
One of the easiest ways to pay down a
mortgage faster is increasing the
frequency of your payments.
More payments per month can cut
down the amount of interest you're
charged over the long run and allow
you to pay off your mortgage principal
far more quickly. And of course,
reducing the number of years that you
take to pay off your mortgage can add
up to huge savings.
Most banks in Canada allow you to
choose between monthly, bi-weekly,
accelerated bi-weekly and accelerated
weekly payment schedules. Bi-weekly
payments are popular with many
Canadians because they allow
mortgage payments to be coordinated
with bi-weekly paychecks.
Most people are shocked by the
amount of money they can save by
making more frequent payments. It
seems like magic, but the math if
undeniable: accelerated bi-weekly
payments, for example, can save you a
huge sum of money over the life of your
~oan.
Lo 'e Rates
IN)l)£..o.e9T!We----
With a mortgage of $400,000 taken out
at 5 percent interest, for example, a
borrower would save $33,941 .36 on a
25 year loan simply by making
accelerated bi-weekly payments rather
than monthly payments. And just think,
weekly payments will save you even
more money!
Accelerating your payment schedule is
a great way to shorten your mortgage
journey and make it far less expensive
in the long run. It's a step that every
Canadian borrower should at least
consider.
.-----~r-
~
October 2013
-
-~
I
~!II.. ..J
22. Part Seven: Paying Down Your Mortgage
Another great way to pay off your
mortgage faster is by making lump sum
payments. Most mortgage contracts in
Canada allow you to make at least one
lump sum payment toward your
principal every year.
Many Canadians who find themselves
with extra cash in the bank after a tax
refund or annual bonus use the lump
sum allowance to whittle down their
mortgage principal and save
themselves interest. You can also make
lump sum payments when your
mortgage comes up for renewal.
Some lenders also provide other
prepayment provisions in their
mortgage agreements, such as
allowing borrowers to "double-up" their
payments each month up to a
pre-determined maximum.
Make sure you' re aware of all the
prepayment and lump sum payment
options that are available to you, and
take advantage of them as much as
~ r finances will allow.
LowestRateSJ..,..
Al-01iELO.>.!ETRAllB~--....m>t
rYou should always keep tabs on where ')
I interest rates are headed. A lower
interest rate on your mortgage will allow
you to pay it off years sooner. If you
have an open mortgage, you may want
to lock in at a certain point to take
advantage of lower rates or avoid
impending rate increases.
Even if you have a closed term, it may,
under certain conditions, be to your
advantage to break your mortgage to
reap savings from lower interest rates.
It's often a good idea to check in with
your mortgage broker or financial
advisor halfway through your term to
get a sense of whether it makes sense
to stay in your mortgage given the
Lcurrent interest rate environment.
j
Interest Rates
23. Part Eight: The Final Stretch of the Mortgage Journey
·-_., Rate~
AND THE LOWEST RATES ANYWHERE. .. INSTANTLY!
24. Part Eight: The Final Stretch of the Mortgage Journey
-
~
o
~
Q)
~
( Your first consideration shouldn't'
be how much money you need
or how you ' ll get the best deal,
but rather, why you need the
cash in the first place.
Remember, to access home
equity funds you'll be pledging
your house as collateral and
paying interest - that means you
should only tap equity for a
worthwhile purpose.
.s:.
.21
"
Gl
...
=
&
>.
II)
0
0
..J
w
:X:
~
Q)
E
If you've decided to tap your home's equity,
you'll want to choose between a standard
home equity loan and a home equity line of
credit, or HELOC.
A home equity loan is essentially a second
loan secured against your house in addition
to your mortgage. But unlike a mortgage,
funds from a home equity loan go into your
bank account as cash. Sounds tempting,
right?
0
3:
So, what are some valid reasons
to tap equity? There are many,
but three really stand out:
HELOCs allow you to withdraw funds as
needed rather than receiving the entire loan
up front. Basically, the bank assesses your
equity position and approves you for a line
:::
6~
Ill
::)
Three Good Reasons to Tap Home Equity
Debt consolidation. By pooling together multiple debts into one home equity loan,
you can simplify your payments and potentially save big on borrowing costs.
Sending a son or daughter to school. Post-secondary education isn't cheap, and
sometimes it's hard to top up those RESPs every year. Some parents tap their
home's equity to help pay for their children's education.
Home renovations. Using home equity to pay for home improvements is a tried and
tested strategy, but be careful: reno costs can escalate quickly, and even though
improvements to your home will increase its value, you still need to pay the home
equity loan back, with interest.
of credit secured against your house1
You can borrow funds up to an
approved limit and pay them off on an
ongoing basis. There is generally a
minimum payment due each month, as
well as the option to pay off as much of
the loan as you want. You can withdraw
and repay a HELOC in true revolving
fashion .
HELOCs are usually offered w ith a
variable interest rate based on the
prime lending rate plus whatever margin
the bank is charg ing . Standard home
equity loans, in contrast, usually have
fixed interest with a fixed payment
schedule. See your bank or use a
comparison site like LowestRates.ca
to compare products and see which
one makes the most sense for you.
In general, HELOCs tend to be a better
choice for those with ongoing cash
needs, such as parents making tuition
payments, etc. Home equity loans are
better if you need a one-time lump sum
to do something like a debt
consolidation.
25. Part Eight: The Final Stretch of the Mortgage Journey
-
The most exhilarating part of the
mortgage journey is getting to the finish
line - the final payment. Paying off a
mortgage in full is a liberating, th rilling
moment. It's the point at which you
cross over from being a borrower to a
true homeowner, in every sense of the
word. Your bank no longer has a claim
on the roof over your head - what a
nice concept!
After you make your final mortgage
payment you should receive a notice
from your lender documenting that your
mortgage is paid in full. Some lenders
will send you your canceled mortgage
note as well. Keep these documents in
your records for safekeeping.
As a follow up, it's a good idea to check
your credit report after a few months
to make sure that your mortgage payoff
has been recorded by credit agencies.
You don't want them thinking you still
owe money on your mortgage when it's
been paid off in full.
Some homeowners celebrate the end
of their mortgage by throwing a party or
going out for dinner - after all that hard
work, it's time to smell the roses.
LowestRate~c•
FN>ll-E~RAT6S~ .. I<ST...nt>1
Congratulations - you've finished the mortgage journey! We hope you've found
the eight-part guide we've put together to be useful.
As you've seen, taking on a mortgage doesn't need to be intimidating -you just
have to follow the right steps along the way and do some smart planning. From
all of us at LowestRates.ca, we wish you the best of luck with your mortgage,
whether you're just starting out or already well along the path to becoming
mortgage free.