Mortgage 101: Buying Your First Home

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The mortgage process can be daunting, but with careful research and asking a lot of questions, you can be confident of your financial choices and let our Morrison team start building the home of your dreams.

The Down Payment:

The first step is deciding on your down payment. It is important to know how much you have to put down and where funds will come from. There are various options such as cashing in RRSPs, or saving the money over time. A down payment savings plan may also be available. Speak with your banking consultant to find out if this is the right option for you.

Qualifying for a Mortgage:

Banks have mortgage calculators and pre-approval tools online to get you started, and Mortgage Brokers will meet you at a convenient time and location. Brokers ask detailed questions on finances and employment in order to make a calculation. Start with a broker from your bank, or ask your Morrison New Home Sales Representative for information on a Morrison Homes preferred Mortgage Broker. Ensure you receive a full pre-approval so you don’t have to re-qualify before taking possession of your new Morrison Home.
Mortgage Brokers base the approval process on the three C’s

• Credit (credit rating standing)
• Capacity (How much you can afford to pay)
• Collateral (down payment or home equity)

To see how much mortgage you can afford and how much your payments will potentially be, click the link below:

RBC Mortgage Calculators

Shopping for a Mortgage:

There are many financial institutions with different products. It is a good idea to shop around for the bank and mortgage that works for you. Here are the mortgage types currently being offered:

Open

• Higher interest rates
• Open for pre-payment at any time

Closed

• Typically lower rates
• Restricted to how much you can pay down yearly

Fixed

• Set rate for term
• Longer it is locked in higher the rate

Variable

• Fluctuate with prime rate
• Typically are lower than fixed rates

Insured mortgage

• Must have if less than a 20% down payment
• Payments are more, insurance is added to principal
• Good product to help people get into first home

Payment frequency:

You can choose to pay monthly, bi-weekly or weekly. If you pay weekly or bi-weekly the extra payments go directly towards principal and you pay less over the mortgage.

Making a choice:

A home is the most important investment you will ever make and our Morrison team is here to help. If you have questions or concerns about mortgages and finance contact your Morrison New Homes Sales Representative.