FREQUENTLY ASKED QUESTIONS

Get answers to some of the most frequently asked questions below. If you do not see the answer you were looking for,
please contact us directly.

what will i need to get pre-approved?

Your Mortgage Broker will want to see some proof of your income: a current pay stub, a letter of employment, as well as your notice of assessment for past years. They will also want to know what you owe: credit card statements, loan documents, etc. Generally, they're going to want to get a blueprint of what you're bringing in and paying out each month to see if you can afford mortgage payments. They're also going to want documentation to show how much money you have saved for your down payment.

WHAT'S THE DIFFERENCE BETWEEN A MORTGAGE BROKER WHO WORKS FOR A BANK, AND ONE WHO'S INDEPENDENT?

Mortgage specialists who are independent have the opportunity to shop around for mortgages with different lenders and because of that flexibility, are sometimes able to get buyers a mortgage when a bank refuses. Mortgage specialists in big banks deal with only their lender, however can sometimes offer perks on your other banking needs such as lower fees on accounts, free safe deposit box. There's also a little more security with the bank because they're often a larger institution that is less likely to close.

WHAT IF MY PARENT IS GOING TO GIVE ME THE MONEY FOR A DOWN PAYMENT?

This happens frequently enough. What the lender usually wants is a signed letter from your parent, or whoever is giving you the money, outlining the amount and stating that is is a gift and not a loan to be repaid. Some lenders have a form to fill out as well. I've also seen that some lenders require you to have the money in your account for 60 days prior to the purchase. Make sure to ask about that when you speak to a mortgage specialist.

CAN A REALTOR SHOW ME A HOME THAT IS BEING SOLD PRIVATELY?

Absolutely! Realtors can show buyers any home that is for sale. With a "For Sale by Owner" home, instead of dealing with another agent who has listed the home, we speak to the sellers directly to arrange showings and negotiate terms. If an offer is to be submitted, this is the time when we negotiate commission with the sellers. What's unfortunate for the sellers is that they don't have someone working on their behalf and making sure they're protected at all times.

WE WANT OUR PARENTS TO BE INVOLVED. CAN THEY COME SEE THE HOMES TOO?

Yes! I think it's a great idea to have someone else come along. Sometimes we can get a little caught up in everything and lose sight of the fact that this is an investment. It's great to have someone there to say, "hey, maybe this isn't the most practical decision", or on the contrary, "the carpet may be hideous, but look at the bigger picture!". Friends and family are a big part of our lives, so by all means, bring them along!

WHAT IF i see everything out there and still haven't found a home that works for me?

Don't panic. The first thing to do is sit down and think about your needs and wants again. Perhaps you'd consider adding a few neighbourhoods or maybe you don't really need two full bathrooms. Another option would be to consider a mortgage plus improvements loan which allows you to purchase a home and gives you money for renovations, so that you can change the home to get what you're looking for. Also always keep in mind that the market is always changing with new listings every day.

how much does a realtor cost?

As a home buyer, you don't have to pay for your Realtor. The way we get paid is through the money used to pay for the home. When listing a home, a seller agrees to pay both the Realtor they chose to list the property, and the Realtor that is working with the buyer. So in essence, you're getting all this service for no cost! It's a really great deal!

i've heard there's a lot of paperwork involved. how will i know what i'm signing?

You're right about that. There are quite a few documents involved in the purchase of a home, and rightfully so. This is a big investment and the paperwork is detailed and designed to protect everyone involved. As with anything, don't sign until you understand it fully. Your Realtor should take the time to explain each document so that you fully understand. This is the time to ask questions if you don't understand. Also, you will be given a copy of everything that you sign.

Your new home awaits...