The Mortgage Store

You are purchasing a home for the first time.

 

If you are considering buying your first home - join the crowd. First time buyers account for a very large segment of the market in cities and towns throughout Canada. In this section we look at the following topics. Please select the ones that are of greatest interest to you

 

Consider the types of homes, the roles of the major players, and the costs

 

There are many factors to consider when purchasing your first home. Please select the ones that are of greatest interest to you.

 

Selecting a Home Type

Should you buy a new home from a builder, or a resale from a Realtor? Should you get a condo apartment? A townhome? A semi? A detached?

 

Role of the Major Players in your Purchase 

What are the key roles and responsibilities of a builder? A realtor? A lawyer? A mortgage lender?

 

The Costs of Purchasing 

The bottom line! How much cash will you need, and how you calculate the amount of Mortgage Financing you'll need.

 

Using your RRSP for a Down Payment, Buying with 5% down, Getting a Pre-approved Mortgage, and Choosing a Mortgage Type.

 

After you've made the big decision about the type of house you want, the first step is to use our Maximum Mortgage calculator to determine how much you can afford and then how you will finance the purchase.

 

Using an RRSP

It can be all or part of your down payment. The rules have undergone some changes in recent months, so if you think you know them, double check here!

 

 

Buying With as Little as 5% Down

A long awaited and highly consumer-oriented program introduced in the early 90's and administered by Canada Mortgage and Housing Corporation (CMHC), the Federal Crown Corporation which administers the National Housing Act. Currently also offered by GE Capital Mortgage Insurance Canada (GEMIC). Read carefully, as the Program's small print could create unexpected hitches!

 

 

Getting a Mortgage Pre-Approved Before you Buy

A simple and effective safeguard against disappointment and stress. Do not put this step off and assume you qualify, as there are a number of hurdles to overcome that can prevent the most determined buyers from achieving the dream immediately.

 

 

What Type of Mortgage you Should Get 

We have outlined the main features and benefits of the many different kinds of mortgages available in the marketplace. All products are offered by the lenders on our system!

 

How mortgage rates are set, How market conditions can affect your decision, How Mortgage lenders "manage" the market.

 

In Canada, mortgage rates are set by the major financial institutions, in a "follow-the-leader" manner, with one of them, usually a major bank, taking the "leader" role. All major financial institutions earn a large part of their income on the "spread", which is the difference between loan/ mortgage rates they charge to borrowers and the rates they pay to depositors/ investors for an equivalent term.

 

In this section, the basic "cause and effect" factors behind these mortgage rate movements are discussed in greater depth.

 

How the Bond Market Affects Mortgage Rates

The bond market, which is a part of the worldwide "wholesale money market" is the great leveler. It is affected by monetary and fiscal policies and economic and political changes in all the major nations of the world.

 

How Market Changes can Affect Mortgage Decisions 

Financial markets can vary greatly, and individual mortgage borrowers' most effective strategies can vary along with these conditions.

 

How the Lenders Manage Mortgage Rates and Products

How the Lenders manage their portfolio of mortgages and deposits while continuing to maintain, or increase their share of a growing mortgage market, is unique to Canada due to the nature of our financial services industry.