First Time Home Buyers Mortgage Information, Peterborough ON

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What is the minimum amount of money needed to buy a home?

In most locations, you only require 10% of the purchase price as your down payment. In some instances, you may qualify to purchase a home with no money down! This helps to ensure you are dedicated to making your mortgage payments and keeping your home.

How can you determine how much of a mortgage you qualify for?

Several factors are involved in determining your purchase potential or how much you Qualify for.

Should you get a pre-approved mortgage?

Definitely. Obtaining a mortgage pre-approval is an important initial step in securing a mortgage to buy a home. The lenders will analyze your current income, debt situation and credit history in order to qualify you for a maximum loan amount. This gives a clear picture of your financial parameters and an idea of your purchase price range.

How can you strengthen your bargaining with the seller of the home you wish to buy?

Obtain a pre-approved mortgage. There are three people who will benefit from your pre-approval: YOU, YOUR AGENT, and THE SELLER OF THE HOME YOU WANT TO BUY. Do you want to strengthen your bargaining position with the seller? Get pre-approved. Do you want your offer to stand out in a case of multiple offers for the same house. Get approved. Look at it from the seller's perspective. If you had 2 offers on the table for your home, one form a fully approved buyer and the other from a buyer that hasn't made any effort to get pre-approved - to which offer would you devote the most attention?

If you are a first time homebuyer, which mortgage term should you choose?

If you have less than 25% down payment, you could take a fixed term mortgage of at least 3 years or variable rate mortgage. Therefore, the options of 3, 4, 5, 7 & 10 year term are available and it is your choice which one of these terms fits your needs. If you have 25% down payment or more, all mortgage terms are available to you and there are no restrictions.

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