• SHOULD I PURCHASE MY NEW HOME FIRST THEN SELL MY EXISTING PROPERTY?

    Author: Boychuk Mortgage Group |

    This is a tricky question and will often come down to factors pertaining to your situation, the current market, what sort of back-up plan you have in place, and your overall needs. Where there is no right answer here, selling your home first will be the safer option. Selling your home before making your next purchase will give you a better understanding of your overall budget. Selling first will also allow you to use the proceeds from your sale towards the purchase of your new home. On the other hand, the risk of selling your home first means you may not…

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  • I DON’T HAVE FUNDS FOR A DEPOSIT, MY DOWN PAYMENT IS IN MY HOME…NOW WHAT?

    Author: Boychuk Mortgage Group |

    If your down payment is stuck in the equity of your home without any secondary source of funds to put towards your purchase deposit, then deposit financing might be for you. A deposit is different from a down payment and demonstrates the buyer’s good faith to close on their purchase agreement. If you find yourself needing these temporary funds, there are options available. How Does Deposit Financing Work? A firm sale contract for your current home must be provided. The funds leant are secured against your current home. The amount borrowed for your deposit on your new home must be paid back in full once…

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  • DO MY CLOSING DATES ON MY SALE & PURCHASE HAVE TO MATCH UP?

    Author: Boychuk Mortgage Group |

    Not necessarily! Ideally, you would want to close on the sale of your existing home before the completion of your new purchase as this allows you to receive the funds from the sale of your home to put towards the down payment on your new purchase. In cases where the sale of your current home takes place after the completion of your new purchase and your down payment is coming from your sale, bridge financing will be an option that helps you bridge the gap of your down payment between purchase and sale closing dates.

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  • WHAT ARE THE COSTS THAT COME WITH SELLING MY CURRENT HOME & BUYING A NEW PROPERTY?

    Author: Boychuk Mortgage Group |

    Let’s take a quick look at the typical costs associated with buying your new home: Land Transfer Tax In the province of B.C., when ownership transfers title, the buyers are faced with a land transfer tax, also referred to as property transfer tax + 1% on first $200,000 + 2% on balance up to $2,000,000 + 3% on the balance over $2,000,000 + 2% on balance over $3,000,000 **If Residential** Please note that there are some exemptions from this tax for first time home buyers, and new built properties. Legal Fees As the final stage of your home buying process, your legal team (lawyer or notary), are responsible for…

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  • NOW ON THE OTHER END, WHAT ARE YOUR COSTS TO SELLING YOUR HOME?

    Author: Boychuk Mortgage Group |

    Realtor Fees Realtor fees are typically paid by the seller of a real estate transaction in Canada and will be based on the terms you and your realtor set forth. Legal fees Just like when buying your new home, your legal team (lawyer or notary), will be responsible for legalizing your real estate transaction. This estimated cost is between $1,500 & $2,500. Mortgage Penalty Fees This penalty is the number one cost when moving from one home to the next and takes place when you are selling a home that has an existing mortgage in place. Depending on the mortgage product you are in, this penalty…

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  • HOW MUCH OF A DOWN PAYMENT DO I NEED?

    Author: Boychuk Mortgage Group |

    The minimum down payment on your next purchase is a very common question in today’s market so let’s break that down. The minimum down payment requirements are: 5% on the first $500,000. 10% on the next $500,000, up to $1,000,000. 20% on any purchase over $1,000,000. 20% will also be required when you: Purchase a rental property Take a 30-year amortization Refinance your mortgage Purchase over $1,000,000 Utilize alternative financing options Examples of some down payment sources may include: Personal savings A gift from an immediate family member RRSP’s or TFSA’s Investment accounts Borrowed money in some cases

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  • HOW DO I CALCULATE MY REQUIRED DOWN PAYMENT?

    Author: Boychuk Mortgage Group |

    If you’re using the equity in your home for the down payment on your next home, this may seem complicated at first glance. We will work with you to help calculate the total remaining equity in your home after all expenses are accounted for. We will then put a detailed plan in place to help you qualify and set you up in a mortgage product that offers you optimal flexibility with a payment you’re most comfortable with.

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  • CAN I STAY WITH MY SAME LENDER?

    Author: Boychuk Mortgage Group |

    With all our clients, our main goal is to save you as much money as possible whilst setting you up in a mortgage that helps you succeed. That means our first step is always to look at the portability of your current mortgage over to your new home. In some cases, this is a great option where your rate may be lower than market rates and we can set you up with your same lender. In other cases, there may be more competitive rates and mortgage solutions available to you. Because the market is always evolving, we make it our priority to…

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  • What is the first step to buying a home?

    Author: Boychuk Mortgage Group |

    The first step to buying a home is to assess your financial readiness. This involves reviewing your savings, income, and credit score to determine how much you can afford to spend on a home. It's also important to consider your long-term financial goals and lifestyle preferences when defining your home buying criteria, such as location, size, and amenities. Once you have a clear understanding of your budget and needs, you can start researching neighbourhoods and properties that align with your criteria.

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  • How much do I need for a down payment?

    Author: Boychuk Mortgage Group |

    The amount you need for a down payment depends on several factors, including the purchase price of the home and your mortgage lender's requirements. In Canada, a minimum down payment is typically 5% of the purchase price for homes valued up to $500,000. For homes priced between $500,000 and $1 million, the down payment increases to 10% on the portion exceeding $500,000. Homes priced over $1 million require a down payment of at least 20%. It's essential to have your down payment saved and ready to demonstrate financial stability and responsibility to potential lenders.

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  • What is a mortgage pre-approval, and why is it important?

    Author: Boychuk Mortgage Group |

    Mortgage pre-approval is an evaluation by your mortgage advisor. We as Mortgage Advisors understand lender guidelines and it’s our job to source these options for borrowers. This includes determining the max mortgage amount a lender would lend to them based on their financial situation along with a breakdown of monthly payments and costs associated with home ownership

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  • How long does it take to buy a home?

    Author: Boychuk Mortgage Group |

    The timeline to buy a home can vary based on factors such as market conditions, financing approval, and the complexity of the transaction. On average, the process can take anywhere from 30 to 60 days, from making an offer to closing the sale. Factors that can influence the timeline include negotiations with the seller, home inspections, mortgage approval, and legal processes. It's essential to work closely with your real estate agent and mortgage lender to ensure a smooth and timely transaction.

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  • What are closing costs, and who pays them?

    Author: Boychuk Mortgage Group |

    Closing costs are fees and expenses associated with finalising a real estate transaction and transferring ownership of the property from seller to buyer. These costs typically include legal fees, land transfer taxes, title insurance, and appraisal fees. The buyer is responsible to pay these closing costs. Their mortgage advisor will ultimately break this down for them.

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  • Can I buy a home with bad credit?

    Author: Boychuk Mortgage Group |

    While it may be more challenging, it is still possible to buy a home with bad credit. Lenders may consider factors beyond your credit score, such as your income, employment history, and the size of your down payment. Some mortgage programs specifically cater to borrowers with lower credit scores or non-traditional credit histories. However, you may face higher interest rates and stricter lending requirements. Working to improve your credit score, saving for a larger down payment, and exploring alternative mortgage options can improve your chances of qualifying for a home loan.

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  • What is a home inspection, and do I need one?

    Author: Boychuk Mortgage Group |

    A home inspection is a thorough examination of a property's condition conducted by a qualified inspector. The inspection typically covers the structural integrity, plumbing, electrical systems, HVAC systems, roof, and other critical components of the home. A home inspection is not mandatory but highly recommended to identify any potential issues or repairs needed before finalising the purchase. It provides you with peace of mind and can help you negotiate repairs or adjustments to the sale price with the seller.

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  • What happens if my offer is not accepted?

    Author: Boychuk Mortgage Group |

    If your offer is not accepted, you have several options. You can revise your offer and resubmit it to the seller, increase your offer amount, or continue searching for other properties that meet your criteria. It's essential to work closely with your real estate agent to understand why your offer was rejected and strategize on the next steps. Keep in mind that the real estate market is dynamic, and new opportunities may arise that better fit your needs and budget.

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