At The suncapitalists.com – Mortgage Broker, we cater to all types of inquiries. The most frequently occurring inquiry we receive is the residential inquiry for a new house purchase or a re-mortgage. Although this is normally a simple and straightforward process, every purchaser or homeowner in CANADA could benefit from the no-obligation advice of a professional advisor.
ARE YOU THINKING OF MAKING A RESIDENTIAL PURCHASE?
You could be looking to get on that most important first rung of the housing ladder to buy your first property. Homebuying can be daunting if you’re new to the marketplace. Seeking advice from an experienced and qualified advisor can make the world of difference.
Alternatively, you may wish to move to a new house. Perhaps you require finance from a new lender as you are moving up the housing ladder. You may need new and appropriate funding as your existing lender is reluctant to provide the loan you require.
It could even be that you are moving, and you want to move your current mortgage from one house to another (known as porting), perhaps with additional funds to complete the new deal.
HOW MUCH MONEY SHOULD YOU HAVE TO BUY A HOUSE?
White it would be lovely to set down the exact amount required in cash, most people aren’t able to do this. A mortgage is likely to be required to meet most of the purchase price. You’ll also need to supply a deposit, typically at least 5% of the property’s value but ideally more. The more you can put down as a deposit, the more mortgages you’ll be able to choose from.
The amount you’ll need to borrow, and the amount required for a deposit will depend on the value of the property you wish to buy. This in turn depends on property prices in the area you are looking at, not to mention the type of property you want to purchase. Apartments may be cheaper than houses (but not always), while any property in a sought-after location is likely to be worth more than one in a less popular area.
In every case, though, affordability should be your first consideration.
WHAT MORTGAGE CAN I AFFORD?
When you are thinking about buying a home, you need to consider how much you can afford. Various factors come into play here – your income, any bonuses you might receive, your savings, your outgoings, and the price of properties in your area (or the area you wish to buy in, if different).
The best way to find out what you can afford to borrow is to use a mortgage calculator. This is designed to make it easy for you to type in the relevant figures to calculate which amount you might be able to borrow from a lender. However, it does not guarantee you’ll be accepted for a mortgage.
The amount you could afford would be based not just on your income but your current outgoings too. This reveals how much you could reasonably afford to pay for the loan each month. Think about how much you could put down as a deposit as well. If a typical property where you live goes for $250,000 and you could put down a 20% deposit, you would need to borrow far less than you would if you could only stump up a 5% deposit. You would get access to better deals too, not to mention more competitive interest rates.
Look for a mortgage affordability calculator to help you work out what you may be able to borrow. This is based on current income and other factors, especially your current outgoings. This is a good calculator to use in the early stages, as it gives you the chance to crunch some numbers. It might also highlight how you can reduce your outgoings to increase your borrowing potential.
Start doing some research as soon as you start thinking about the possibility of buying your own home. The more you know, the easier the process will be, as you’ll understand more of the various stages involved in applying for and getting a home loan. There are many good and basic guides online that assume no prior knowledge of loans like these.
Our advisors are standing by to guide you. We have access to a large range of deals offering varied interest rates on different LTV (loan to value) amount