Planning to own your first-time home in Canada in 2019 ?
Wednesday Mar 06th, 2019Share
Purchasing your first home is a milestone in your life, and becoming a first-time homeowner is an exciting moment. It can also be scary because there is so much you need to do in preparation. You need to make sure you are financially ready, get the paperwork in order, find a home and get a first time home buyer’s mortgage.
But that's OK, because we are here to guide you through the buying process. We can help you to get approved, get the paperwork, and find the your dream house.
What you need to know about mortgages
As a first-time homebuyer, you’re probably going to apply for a mortgage. This section will introduce you to all the basic concepts you need to know.
What is a mortgage?
A mortgage is a type of loan you apply for when you’re in the market to buy a home. It’s backed by property, meaning that if you don’t keep up with the payment schedule, which is negotiated at the outset, the lender can take possession of the property. It usually takes decades to pay off a mortgage.
What is a mortgage term?
A mortgage term refers to the length of time for which the details of the agreement are valid. Lenders offer terms ranging from six months to 10 years, with most Canadians favoring five-year terms.
When your mortgage term expires, you can choose to renew your mortgage with the same lender, or you can compare rates and choose another lender.
What is amortization?
The amortization period is the amount of time it’ll take you to pay off both the principal and interest on your mortgage. The maximum time frame in Canada is 25 years, but you can get a mortgage for less than 25 years (it would mean you’d pay less in interest)
What is a down payment?
A mortgage cannot be used to cover the entire cost of your home. To secure the home that you want, you’ll also need to give its seller a down payment. The down payment is deducted from the price of your home.
You can buy your first home in Canada with only 5% down payment.
So, If you are planning to own your 1st dream home in 2019, don't worry, I'm here and can help with that.