Purchasing A Home
Relax; we will make buying your first home easy.
Doing anything for the first time can be scary—especially when it’s something as big as buying a house! But don’t worry, we at Titan Mortgage Group specialize in mortgages, and we pride ourselves with being up to date will all new programs offered by over 30 different lenders. Our promise to you is to “Empower you with mortgage knowledge” and provide you will with all the information, advice, assistance and reassurance you need, every step of the way. To explore some of your Mortgage options contact us(link to contact page) for a free personal and confidential consultation.
Pre-approved Mortgage Advantages
Here are some good reasons to contact us so that we can pre-approve you for a mortgage:
With a pre-approval your rate is locked in for 120 days.
Knowing what homes you qualify for ahead of time avoids disappointment and saves you time.
Pre-approved buyers appear serious and almost always have more negotiating pull with sellers and real estate agents.
The pre-approval process alerts you to problems with your application that could delay financing.
But what if rates go down and I am locked in, you ask?
In this case we will let you adjust to the better rate before closing.
What will I be able to afford?
Figuring out how much you can afford to spend each month is important and we can help you create a budget. This is an added benefit when you deal with Titan Mortgage Group. Your mortgage pre-approval will be based on the information given and the supporting documentation provided by you. Please be honest and up front with us. Then, we will work together to get you approved at the best rate and terms. A sample budget calculation is found here courtesy of Canadian Mortgage and Housing Corporation.
Our job is to shop the mortgage lenders on your behalf. As a mortgage broker we represent the client first! That is our promise to you!
A down payment generally ranges from 5% to 25% of the purchase price. Some financial institutions offer a form of no-down payment mortgages, called CashBack mortgages. If you have a good credit history but haven’t been able to save the down payment, this option may be for you. Coming up with a down payment may be your biggest challenge. If you make a down payment of 25% of the purchase price of the property, you can get an uninsured low-ratio or conventional mortgage.
On a $200,000 home, your down payment would be $50,000. If you can not come up with the 25% required for an uninsured low-ratio or conventional mortgage, you can get a high-ratio mortgage.
The amount of the CashBack can range anywhere from 1% to 5%. The money from a CashBack mortgage is especially handy for the fist time buyer who needs extra funds to purchase home improvement items such as blinds, carpet, appliances, or even furniture. Thus, first time buyers are the number one consumer of CashBack mortgages in Canada.
It is important to remember that this rebate is never directly paid back to the Bank. Instead, the Bank increases the interest rate on the entire mortgage to recoup their costs. Simply put, a CashBack mortgage usually costs you more in the end, and Banks never offer their best rates on a CashBack mortgage.
Insured Mortgages and Premiums
A high-ratio mortgage must be insured against default, or non-repayment, by the federal government through the Canada Mortgage and Housing Corporation (CMHC) or an approved private insurer (the lender usually arranges this). The borrower pays a one-time insurance premium to the insurer (the rate varies depending on the amount of the down payment). The default insurance premium is usually added to the principal amount of the mortgage. With mortgage default insurance, if you default on your mortgage, the lender is paid back by the insurer.
Unless you have an inheritance, win the lottery or have generous relatives, getting your down payment together will mean a lot of saving, planning and budgeting. But it will be worth it.
No insurance premiums are required on Loan to Value less that 80%
As a Repeat Buyer, you need to know that your options are extensive. With a changing mortgage marketplace, you need to be kept up to date so that you can make a decision that is tailored to your current situation with the flexibility that you require.
New To Canada Program
Now qualified homebuyers who have immigrated or relocated to Canada can qualify for a mortgage with as little as a 5% down payment. For those clients who qualify we can typically give them our best rates.
Vacation & Secondary Homes
We know that today’s busy lifestyles demand more flexibility -whether it’s a second home in the city to reduce that weekly commute, or a cottage at the lake for weekend getaways. Introduced by CMHC/Genworth, you can buy that property sooner – with as little as 5% down.