What's involved in a purchase

• Get Pre-Approved
• Work with Realtor you feel comfortable with
• Choose your new home
• Inspections, Appraisals 
• Waive conditions (with counsel from your realtor and final approval for financing)
• Choose a lawyer that deals in real estate
• Obtain home insurance advise your lawyer who the company is and phone numbers
• Go to lawyers and sign necessary documents 
• Wait for your possession day and get your keys!

There are reasons why doctors perform tests prior to surgery. I know mortgages and surgery but give me a minute... if you have a rare blood type  and the doctor needs to do a blood transfusion it sure would be nice to have that information beforehand not while your in a crisis  on the table and it's become critical.

Often times I can iron out the wrinkles when people buy a home without being pre-approved however many people have been disappointed finding out they do not qualify, require a higher down payment ect. and their dreams of home ownership and  how that would have enhanced their life is squashed, the deal falls apart, and they are left apologizing and disappointed.  

There are more reasons than just a great rate . I would love to work with you and share my knowledge, help walk you through the process so your new home purchase goes smoothly.  I love to listen to you share your plans so we can tailor the financing to work for your financial plans or create some if you have not really had the time.

Your Down Payment: When you first buy a home, the amount of your down payment can make a difference.  A borrower may go as low as 5% down with an excellent credit history. I can help you look into various strategies and programs to help fund your down payment. Lenders need to see a 90-day history of your down payment money.  I recommend keeping your funds in a single savings account and try not to transfer within that 90 day time frame. 

It is helpful if we start early to determine how much savings, gift, or investment funds you will be required to have to put towards the equity in your new home.

Note:
Lenders will accept down payments from: : Savings or chequing  account , Trading or investment accounts, Gift from close family member Sale of previous home or asset, Cash or Equity borrowed from other property. Lenders won’t accept; Gifted funds on a rental property, a gift from non-relative, funds from a sanctioned country, cryptocurrencies, such as Bitcoin, or funds that cannot be traced.

If your down payment less than 20% , it's considered to be a insured mortgage,  and then requires mortgage default insurance. That means that the bank carries less risk and the difference is insured requiring the home purchaser to pay the premium. 

Insured mortgage premiums

Overall, the more you put down, the lower your mortgage amount, and the more you'll save through lower monthly payments and the overall interest cost of your mortgage.

Note:

These new rules are effective December 15, 2024:

• The home price cap for insured eligibility is raised from $1M to $1.5M, allowing less than 20% down payment for more expensive homes. ( in response to years of declining first-time home buyer participation, brought about by high home prices and then higher interest rates). 
• First-time home buyers can extend insured mortgage amortizations to 30 years from the standard 25.
• Insured mortgage purchases of newly-built homes can also extend to 30 years (including first-time buyers).

 Starting January 15, 2025:

Insured refinances will be available for secondary suite construction on existing properties, including up to 30-year amortizations.

A thing to note is if the amortization is being extended from 25 years to 30 years a premium of 0.2%  is added to the mortgage insurance premium.

 When saving for your down payment, make sure to budget for extra expenses.  One important one associated with purchasing your new home are  'Closing Costs'. These are costs and fees like Lawyers fees, Alberta Land Title transfer fees for for transferring the title into your name, property tax adjustments, Insurance, If you request a home inspection, title insurance.   If you have enough for a down payment, but can't cover the closing costs, your home purchase may be in jeopardy.  

If you plan for these costs you will not be panicked trying to collect funds at the last minute.