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Buying a home is an exciting time, but it’s important you know how the process works! Make sure you get your advice from a mortgage professional. We'll give you the facts your bank won't about your next purchase. With access to multiple lenders, we'll help you find the best rates and best mortgage options to help you buy your dream home.

Interest rates touching historic lows and more attractive house prices in parts of the country have added up to better affordability for first-time home buyers. The federal government’s recent budget has added more reasons for Canadians who aren’t yet homeowners to consider entering the Kamloops real estate market this Brenda Colman & Associates year. Under the new federal budget, first-time home buyers can qualify for a $750 tax credit, to help with closing costs, such as appraisal or legal fees. Also, home buyers can now withdraw up to $25,000 from their RRSP under the Home Buyers Plan for a down payment – up from the previous limit of $20,000. Couples can access an extra $10,000 from their RRSPs under the plan.

For those who are feeling secure about their income and want to take advantage of low rates and a more affordable market, the new federal budget provisions could make an enormous difference in terms of the properties they can afford, We’re now seeing more first-time buyers seriously considering making the jump into the Kamloops market.

get started early

A mortgage consultant can help you get the right documentation in place, this often includes: proof of income, down payment, employment verification letters, and tax documents. A consultant will also check your credit history to ensure you meet the lender specific requirements before committing to a purchase. If you are thinking about a home purchase, consulting a mortgage specialist is critical to navigating the mortgage process.

know your price range

If you want to buy a home within the next few months, getting a mortgage pre-approval will help determine the right price range for you. Affordability is critical when considering any long-term commitment. Many lenders will give a “rate-hold” – a guaranteed interest rate for up to 120 days when pre-approving potential borrowers for a mortgage. This means you don’t have to worry about interest rates rising while you look.

take your time - don't rush your decision

Finding a home you love should be your most important consideration. Although there are short-term options, most mortgage contracts have 5 year terms. Be aware that the housing market fluctuates seasonally. We see prices and availability increase in spring and summer and decrease during fall and winter. Ask your broker if it’s a good time to buy!

accelerate your payments

A mortgage is the largest debt that most consumers will ever take on. Paying it down faster can mean large savings on interest over the term. Get in the habit of making lump sum payments whenever possible, and consider making bi-weekly payments as a way to decrease the life of the loan. Make sure your mortgage product includes prepayment options you can access easily and without penalty.

know your goals

Choose a mortgage that accommodates the present state of your finances but also fits your long-term goals. Is it important to you to be mortgage-free fast? Is it important that your mortgage is portable or assumable? Do you need access to a secured line-of-credit? The right mortgage can start you on a path to financial freedom.

home purchase

Buying a home costs more than the offer you make. There can be numerous other expenses that can compile when you purchase a home. This purchase price checklist outlines all the costs you can expect. Please note that they can vary by province and are subject to change.

purchase price

The starting point in your calculation, if you’re like most first-time home buyers, you’ll need a mortgage for the majority of this!

land transfer tax

A tax payable to the provincial government by the purchaser upon the transfer of title from a seller. This tax is usually not expected by most homeowners. It can be sizeable. The amount varies from province to province and is generally a percentage of your purchase price.

lawyer's fees

Solicitor fees vary from lawyer to lawyer, it can cost you up to $1,200 depending on whether you are re-mortgaging your existing home or buying new. Contact us or your realtor to help with this process.

registration fees

Fees paid to the provincial government for recording a title transfer, mortgage registration or other instrument such as an Assignment or Lien with the local authorities.

high ratio insurance

Must be purchased if you are buying a home for less than 20% down. The premium for the insurance is calculated with a sliding scale and is dependent on the size of your down payment.

compliance letter

Obtained by your lawyer and required in many municipalities throughout Canada before a property transfer can take place. This is an acknowledgement from the building department that the property either has, or is clear of, outstanding work-orders. Work-orders are specific clean-up or fix-up requirements that the owner is legally required to do, and which must be completed before ownership can be transferred.

tax certificate

Obtained by your lawyer at the time of sale to confirm that local taxes have been paid up to date. If they are not up to date, the seller is required to pay them from the proceeds of the sale. If there are insufficient proceeds, then you may be legally required to pay the outstanding taxes. If, on the other hand, taxes have been prepaid, you may have to compensate the seller for them.

provincial new home warranty program

Provincial "New Home Warranty Program" Premiums — new homes only!

A third party (provincial) warranty program between a builder and a buyer. With the exception of Ontario and Quebec, membership in such a program is voluntary for the builder. Through these programs, your home is guaranteed against defects for at least one year. All homes with a high-ratio insured mortgages (with greater than 80% loan to value) must be enrolled in such a program.

mortgage appraisal and application fees

An appraiser offers their professional opinion on the current market value of a property. The lender will use this information when deciding if the land and building in question are suitable as security for a mortgage. An appraiser will not typically do a detailed examination of the condition of the building and its systems (like heating and plumbing) – you’ll need a home inspector for that.

home inspection

A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the “firming up” of a real estate transaction. The scope and detail may vary, but most reports indicate the specific problem and the cost to repair. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the resume of the inspector, and if possible check references from previous customers.

land survey

The legal written and/or mapped description of the location and dimensions of the land. The survey should also show the dimensions and placement on the lot of any structure, including additions such as pools, sheds and fences. An up-to-date survey is often required by a lender as part of the mortgage transaction.

title insurance

Title insurance can be purchased by home buyers to protect against loss or damage resulting from defects in title (Title is the legal term for the right of ownership of property). These defects could include fraud, zoning infractions, irregularities not revealed by a property survey, errors or omissions in deeds, or liens by contractors or for unpaid taxes.

connection charges

Some local utility companies (hydro, gas, oil) charge a fee on closing to connect new buyers up to their service. More common, however, is an extra charge on the first billing.

property tax and prepaid utilities adjustments

If the previous owner prepaid property taxes or other utilities, they will be credited the prepaid portion on closing.

interest adjustment (IA)

If you arrange to make your mortgage payments monthly on the first day of the month, and your transaction closes after the first day of the month, your lender will charge you interest on closing to the next interest date, called the Interest Adjustment Date (IAD), when your payment cycle will commence. This can be a sizeable amount, but it is the correct interest you should pay. For example, close on June 15th, pay 15 days interest on closing and start payments on August 1st.

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