We have created a mortgage purchase guide to help you navigate the process and avoid the common mistakes people often make.
Whether you’re a seasoned buyer or a first-timer, being up to speed on the process of purchasing a home can help save you money and provide a more enjoyable experience.
One very important consideration is to ensure that you have a competent group of professionals working for you. This includes mortgage brokers and bankers, realtors, lawyers, appraisers, inspectors, insurance agents and several other potential services. Each individual on your team plays a key role in the purchase of your home – and if everyone works together, it will create a seamless process that is exciting and enjoyable.
As such, we suggest that you consider the following questions and apply them to your search when building your team, including your choice for a mortgage broker.
Remember: the most important person in this process is you, the purchaser, so it’s important to select people that are a good fit.
Often times, your home buying team will be with you for years, as you move onto your second, third or fourth purchases. It’s a lifelong relationship that can pay dividends.
Advice, understanding and friendly service are the backbone of everything we do at Spin Mortgage and we’re excited by the chance to help you get into your home.
We have outlined the key mortgage steps to ensure you are well prepared for your purchase.
Knowing What You Can Afford
Understanding what you can afford is an important first step for any property purchase. Our affordability calculator will help you determine what is in your scope based on a series of factors including income, down payment, taxes, regulations and a host of other items that are part of every real estate purchase.
If the calculator doesn’t provide you with enough information, we’re available to help you determine what is possible over the phone. Our experienced team can conduct a thorough assessment and ensure your information is accurate according to current Canadian Mortgage Guidelines, which you can then use to apply.
When you apply online, you’ll receive an immediate response that includes a list of required documents based on your profile. Once everything is submitted, our team will speak with you directly about your mortgage possibilities and how much you can afford – a process known as “pre-approval”.Quick Apply
Understanding Mortgage Rates
Mortgage rates are not one size fits all, so it’s important to understand what suits you and your goals best. As experienced mortgage brokers, we know it can seem like a lot to learn in a small amount of time – which is why we’re here to help.
We’ll work with you to answer the questions that many people have, like the difference between open, closed, fixed and variable mortgages, how rates are determined, how mortgage penalties work, what restricted rates are and how all rates are determined.
This part of the discussion can be somewhat intimidating for buyers, especially with so much competition clouding the conversation and vying for your business. We’re not here to convince you to go with us or that you should spend more than you have. We are simply here to act as a guide to help you understand the complexities of the mortgage market and find a solution that best suits you.
Time to Buy
As with all parts of the process, finding a knowledgeable realtor that you trust is important. Too often we see people using a realtor simply because of a personal connection and while sometimes that works out, it can also present challenges.
No matter your connection to a realtor, always ask for trusted referrals. Due diligence is crucial, as buying a home may be the single largest transaction of your life. Don’t be afraid to challenge your realtor and ask hard questions. At the end of the day, they work for you.
When you choose the right realtor and are ready to make an offer be sure that you are protected through proper processes. This can include but is not limited to, having approved financing, ensuring any strata documents have been reviewed, the home has been appraised accurately and a third-party inspection has been completed.
All of this is vitally important as at this stage, your realtor will send us the required paperwork to initiate the formal mortgage approval process.
If all your ducks are in a row, everything should go smoothly and you could be signing that day.
The final part of the purchasing process is for our team to review the mortgage structure and rates to ensure everything is still aligned. We then submit to the lender and secure your financing.
Once approved, and we’re happy with all the terms, we’ll advise you that the financing condition can be satisfied, after which you can safely provide your non-refundable deposit to be held in Trust. You receive the Mortgage Commitment paperwork to review and sign and – boom – you’ve just bought your first home (something we call a firm sale).
Taking Possession of Your Property
The big moment. You get to take possession of your property. It’s something to feel proud about, although we know for some people it can be bittersweet knowing that you now have a mortgage.
(It behooves us to point out that technically possession and completion are not actually the same thing. Possession means you can move into your home, while completion means money has changed hands.)
Completing the sale is a legal process that works differently in different provinces. Your Notary (in BC) or Lawyer (in AB, ON, BC) will arrange to have you sign all the real estate documents, typically a week prior to possession. You’ll provide a bank draft for the remainder of your down payment, as well as other important documentation such as property insurance.