Mortgage Guide : simplebooklet.com

□ Apply for a Pre – Approval……………………………………..…….. 2□ The Nitty Gritty (Gathering documents)………………….…....3□ You have been Pre-Approved…………………..…………….........4□ Choose a Real Estate Agent you trust……..……………...…....5□ Disclosure of Fees…………………………………………………....….…6□ First Time Home Buyer Perks……….……..……………..…....…...7□ Putting in an offer on a Home……………………………..…....…..8□ Conditions to include in your offer………………………........…8□ Final Approval (Once your offer is accepted)….……..........9□ Before Closing / Solicitor Information………………........….10□ Mortgage Protection ………………….…………..………….....…....11□ When your term is up / Refinance………………………..........12□ Why choose a Mortgage Agent………………………………....…13□ Helpfull Resources….........................................................…..14HOMEFinancingFinancingcornwallcornwallSTEP BY STEPGUIDE TOMORTGAGES:

Page 3

HOMEFinancingFinancingcornwallcornwall will give you a maximumwill give you a maximumpurchase price which sets a clear expectation of yourpurchase price which sets a clear expectation of yourspending limit for a home. This allows you tospending limit for a home. This allows you to invest investwith confidencewith confidence and lets the seller know that you areand lets the seller know that you areserious about the purchase and already have yourserious about the purchase and already have yourfinancing in place.financing in place.AA PRE-APPROVALPRE-APPROVALTHE FIRST STEPS:The Pre-approval states how much money they may lend you for aThe Pre-approval states how much money they may lend you for amortgage or refinance. This is not a legal guarantee of funds, but it doesmortgage or refinance. This is not a legal guarantee of funds, but it doeshelp you in your search for a home.help you in your search for a home.Before you look - get a PRE-APPROVAL:*Please note that interest rates have an expiry date, we*Please note that interest rates have an expiry date, wewill do our best to get you the will do our best to get you the BESTBEST possible rate for possible rate foryour situation.your situation.

Page 4

HOMEFinancingFinancingcornwallcornwallTH E NIT TY GRI T T YTH E NIT T Y GRI T T YYou can bring your documents into our office at 902 Second Street West,You can bring your documents into our office at 902 Second Street West,Cornwall,Cornwall,ON Suite 201 (second floor) OR you can email them to us:ON Suite 201 (second floor) OR you can email them to us:cornwall@mortgagebrokerscity.comcornwall@mortgagebrokerscity.comWHAT WE WILL NEEDWHAT WE WILL NEEDfrom you and your co-applicant (if applicable):from you and your co-applicant (if applicable):□ Letter or employment (must include start date, position, salary and must be signed by your employer)□ 2 Current Paystubs□ Photo ID front & back□ Notice of Assessments for the previous 2 years. (If taxes were owing, we need proof the account is paid and up to date)□ T4’s for the last 2 years (your name must be on all CRA documents)□ Void Cheque for your mortgage payments.□ If you receive the child tax benefit we will need your CRA statement andconfirmation of the child’s age(s) (birth certificate) □ If you are separated or divorced the lender will require yourcourt ordered documents.□ 120 Day Banking Statements for the account holding your downpayment. (NEW Purchases Only)□ Current mortgage statement (Refinance/Renewal)□ Current Property Taxes (Refinance/Renewal)□ If you are self employed, we will need proof of ownership such as yourbusiness certificate and the last two years of your full T1 generals.

Page 5

HOMEFinancingFinancingcornwallcornwallYou have been Pre-Approved – What’s next?New Purchase:New Purchase:Now that you know your budget you will need to let your Now that you know your budget you will need to let your RealRealEstate AgentEstate Agent know what you are looking for and what your price know what you are looking for and what your pricerange is.range is.Renewal:Renewal:You can rest easy knowing that your mortgage renewal will beYou can rest easy knowing that your mortgage renewal will beseamless. **You should have this in place 3 months before yourseamless. **You should have this in place 3 months before yourmaturity date to make sure things transition on time.**maturity date to make sure things transition on time.**Refinance:Refinance:Now you have an idea of how much equity you can potentiallyNow you have an idea of how much equity you can potentiallypull from your home. You can start to plan out what you will dopull from your home. You can start to plan out what you will dowith the funds. If you are looking to invest, we can recommend awith the funds. If you are looking to invest, we can recommend areliable financial planner to help you with your goals.reliable financial planner to help you with your goals.We will work with you to make sure you are financiallyWe will work with you to make sure you are financiallycomfortable with your mortgage payments.comfortable with your mortgage payments.

Page 6

HOMEFinancingFinancingcornwallcornwallChoose someone you can trust:Choose someone you can trust: A home is a very A home is a veryintimate, very intimate, very expensive purchase. It is very importantexpensive purchase. It is very importantthat you feel comfortable, listened to, and respected inthat you feel comfortable, listened to, and respected inyour views.your views.Look for experience: Look for experience: You will want a full-time realYou will want a full-time realestate agent who has experienced the ups and downs ofestate agent who has experienced the ups and downs ofthe market and can navigate you through currentthe market and can navigate you through currentconditions. Market knowledge is very important.conditions. Market knowledge is very important.Do your research: Do your research: Find someone you feel comfortableFind someone you feel comfortableworking with and that matches your goals. Don’t beworking with and that matches your goals. Don’t beafraid to ask the agent questions to make sure they are aafraid to ask the agent questions to make sure they are agood fit. When in doubt: REACH OUT!good fit. When in doubt: REACH OUT! If you do not have a real estate agent or are not sureIf you do not have a real estate agent or are not surewho to choose, we can gladly recommend one that iswho to choose, we can gladly recommend one that isexperienced and local to you.experienced and local to you.Choosing aReal EstateAgent:

Page 7

HOMEFinancingFinancingcornwallcornwallDown Payment (Purchases)Down Payment (Purchases) First and foremost, you need to have access to a First and foremost, you need to have access to adown down payment. You will need a minimum of 5% of the purchase price. Thepayment. You will need a minimum of 5% of the purchase price. Theminimum is subject to approval of an insurance company like CMHC whichminimum is subject to approval of an insurance company like CMHC whichcomes with a fee.comes with a fee.If you have 20% down you can avoid these fees, ask us for more details! ForIf you have 20% down you can avoid these fees, ask us for more details! Forinvestment properties (including purchases with rentals attached) you will need atinvestment properties (including purchases with rentals attached) you will need atleast 20% down.least 20% down.Closing Costs:Closing Costs: You will need to have funds to cover closing costs which includes You will need to have funds to cover closing costs which includeslegal fees. Lenders ask that you have at least 1.5% of your purchase price set aside forlegal fees. Lenders ask that you have at least 1.5% of your purchase price set aside fortthese costs.hese costs.Property Taxes:Property Taxes: Some lenders will include your property taxes in the mortgage Some lenders will include your property taxes in the mortgagewhich means they will take out extra money every month and take care of it for you.which means they will take out extra money every month and take care of it for you.If you are paying them yourself, it is important to set money aside and have themIf you are paying them yourself, it is important to set money aside and have themup to date.up to date.Appraisal:Appraisal: Some lenders may require an appraisal to ensure the value of your home Some lenders may require an appraisal to ensure the value of your homeand the loan amount make sense. For refinances, appraisals are often ordered toand the loan amount make sense. For refinances, appraisals are often ordered toassess the amount of equity you have in your home. assess the amount of equity you have in your home. Read More...Read More...Land Transfer Tax:Land Transfer Tax: When you acquire land or a beneficial interest in land, you pay When you acquire land or a beneficial interest in land, you payland transfer tax to the province when the transaction closes. Land transfer tax island transfer tax to the province when the transaction closes. Land transfer tax isnormally based on the amount paid for the land. Click here to use the online landnormally based on the amount paid for the land. Click here to use the online landtransfer tax calculator. First Time home buyers see page 7 as you are entitled to atransfer tax calculator. First Time home buyers see page 7 as you are entitled to aland transfer tax credit.land transfer tax credit.*Other fees if applicable will be disclosed to you once your final approval comes in.*Other fees if applicable will be disclosed to you once your final approval comes in.Here are some fees to expect with the mortgage process:

Page 8

HOMEFinancingFinancingcornwallcornwallCongratulations Congratulations on investing in your future!!!! Here are someon investing in your future!!!! Here are someperks of being a first-time home buyer:perks of being a first-time home buyer:Land Transfer Tax Credit:Land Transfer Tax Credit: The Ontario government offers first time The Ontario government offers first timehome buyers rebates on land transfer tax. Land transfer tax is part ofhome buyers rebates on land transfer tax. Land transfer tax is part ofthe closing cost of purchasing a property and is based on the amountthe closing cost of purchasing a property and is based on the amountpaid for the land or on the fair marker value of the land. First -timepaid for the land or on the fair marker value of the land. First -timehome buyers are eligible to receive a land transfer tax refund of up tohome buyers are eligible to receive a land transfer tax refund of up to$4,000.$4,000.Home Buyers Plan:Home Buyers Plan: As a first-time home buyer you can use up to As a first-time home buyer you can use up to$35,000 of your RRSPs towards the down payment of a home. This is$35,000 of your RRSPs towards the down payment of a home. This isan interest free incentive that must be paid back over 15 years.an interest free incentive that must be paid back over 15 years.NOTE: If you are using your RRSPs towards the purchase of a houseNOTE: If you are using your RRSPs towards the purchase of a housemake sure to get the withdrawal process started early so the funds aremake sure to get the withdrawal process started early so the funds areaccessible before your closing day.accessible before your closing day.FFirst Time Home Buyers Tax Credit:irst Time Home Buyers Tax Credit: If you have not owned a home If you have not owned a homewithin the last 4 years, you may be eligible for a tax credit. Thiswithin the last 4 years, you may be eligible for a tax credit. Thiscredit is calculated based on federal income tax rates.credit is calculated based on federal income tax rates...FIRST-TIME Home Buyer

Page 9

HOMEFinancingFinancingcornwallcornwallYou have found a home you LOVE! Now it is time to put in anYou have found a home you LOVE! Now it is time to put in anoffer… Whether or not this is your first time buying a home oroffer… Whether or not this is your first time buying a home ornot, here are some things to consider:not, here are some things to consider:Putting in an OFFER**We strongly advise adding in aWe strongly advise adding in a Condition ofCondition ofFinanceFinance, YES you were pre-approved for a, YES you were pre-approved for amortgage with the information provided tomortgage with the information provided tous. If anything changes this can affect yourus. If anything changes this can affect yourpre-approval.pre-approval.Conditionof FinanceOtherConditions*Inspection*Inspection*Appraisal*Appraisal*Fire/Property Insurance*Fire/Property Insurance*Selling your home*Selling your home(If you currently own)(If you currently own)Please see page 13 for a list of Please see page 13 for a list of ResourcesResourceswho can help in fulfilling yourwho can help in fulfilling yourconditions.conditions.Common mistakes people makeCommon mistakes people makebefore before their mortgage closing: buyingtheir mortgage closing: buyinga new vehicle, making a large newa new vehicle, making a large newpurchase, changing jobs, purchases onpurchase, changing jobs, purchases oncredit, retiring or going on a leave. Itcredit, retiring or going on a leave. Itis best to put all other financialis best to put all other financialdecisions on hold while in the processdecisions on hold while in the processof getting a mortgage, refinance, orof getting a mortgage, refinance, orrenewal.renewal.

Page 10

HOMEFinancingFinancingcornwallcornwallFor purchases:For purchases: Once you have an Once you have an accepted offeraccepted offer on a home, on a home,your real estate agent will send us the purchase and saleyour real estate agent will send us the purchase and saleagreement. At this time we can reach out to the lender and getagreement. At this time we can reach out to the lender and geta full approval.a full approval. We will reach out to you with the mortgage details at which timeWe will reach out to you with the mortgage details at which timeyou can choose to sign the paperwork in person, virtually viayou can choose to sign the paperwork in person, virtually viaTeams, or by email (Docusign).Teams, or by email (Docusign).The Mortgage Commitment will have conditions on it that mustThe Mortgage Commitment will have conditions on it that mustbe fulfilled. Usually these contain most of the financialbe fulfilled. Usually these contain most of the financialinformation we have already asked you for however there mayinformation we have already asked you for however there maybe extra documents we need.be extra documents we need.APPRAISALS: APPRAISALS: Some lenders may request an appraisal be doneSome lenders may request an appraisal be donebefore closing to confirm the value of the property is not lessbefore closing to confirm the value of the property is not lessthan the mortgage amount. Most refinances will require anthan the mortgage amount. Most refinances will require anappraisal to be done so please keep in mind that you will beappraisal to be done so please keep in mind that you will berequired to pay for this service. required to pay for this service. Read More...Read More...We are always here to answer your questions or concerns so neverWe are always here to answer your questions or concerns so neverhesitate to reach out!hesitate to reach out!FINALApproval:

Page 11

HOMEFinancingFinancingcornwallcornwallBefore closing we need all conditions on the commitment satisfied.Before closing we need all conditions on the commitment satisfied.Please send us all documentation as soon as possible to ensure yourPlease send us all documentation as soon as possible to ensure yourmortgage/refinance closes on time.mortgage/refinance closes on time.You will need a lawyer for your mortgage closing, please let us knowYou will need a lawyer for your mortgage closing, please let us knowwho you will be using so we can have the instructions sent out in awho you will be using so we can have the instructions sent out in atimely manner.timely manner. If you are not sure who to use for your mortgage If you are not sure who to use for your mortgageclosing we can recommend someone to youclosing we can recommend someone to youNOTE: NOTE: On or close to your closing day you will sign another set ofOn or close to your closing day you will sign another set ofpaperwork with your lawyer. Please note that your lawyer may askpaperwork with your lawyer. Please note that your lawyer may askyou for some of the same information we have already collectedyou for some of the same information we have already collectedfrom you. You will need to secure home insurance before closing, iffrom you. You will need to secure home insurance before closing, ifyou need a free quote please page 11 for recommendations.you need a free quote please page 11 for recommendations.PAYOUTSPAYOUTS: If the lawyer is paying out your existing mortgage and: If the lawyer is paying out your existing mortgage andor any debts please note that the amounts are subject to changeor any debts please note that the amounts are subject to changebased on penalties and interest from existing lender and or debtbased on penalties and interest from existing lender and or debtholders.holders.**You will need to supply your lawyer with your **You will need to supply your lawyer with your down paymentdown payment so soplease make sure that you make arrangements before hand to haveplease make sure that you make arrangements before hand to havethe funds transferred to them. If it is coming from an investmentthe funds transferred to them. If it is coming from an investmentyou will need extra time have these funds transferred to youryou will need extra time have these funds transferred to youraccount.account.BEFORE CLOSINGWhat to expect:We will need the following information so please write itWe will need the following information so please write itdown for your own reference:down for your own reference:Lawyer Name, Firm, Address, Phone Number, Fax Number and EmailLawyer Name, Firm, Address, Phone Number, Fax Number and Email

Page 12

HOMEFinancingFinancingcornwallcornwallHelp protect your loved ones, your home and your savingsHelp protect your loved ones, your home and your savingswith with life and disability insurance.life and disability insurance.When it comes to the future, a lot of things are up in the air. That’s whyWhen it comes to the future, a lot of things are up in the air. That’s whyit’s important to be as prepared as possible in case the unexpectedit’s important to be as prepared as possible in case the unexpectedhappens. Mortgage protection insurance is worth looking into to helphappens. Mortgage protection insurance is worth looking into to helpmake sure you have the right coverage in place for you and your family.make sure you have the right coverage in place for you and your family.Seventy-five Seventy-five percent of Canadian households say that they would havepercent of Canadian households say that they would havedifficulty paying everyday living expenses like their mortgage if thedifficulty paying everyday living expenses like their mortgage if theprimary breadwinner were to pass away.primary breadwinner were to pass away.Option 1 – Mortgage Protection Plan with ManulifeOption 1 – Mortgage Protection Plan with Manulife*A Mortgage Protection Plan quote for Life & Disability will be included*A Mortgage Protection Plan quote for Life & Disability will be includedin your signing package. You can choose to apply for to waive thisin your signing package. You can choose to apply for to waive thisinsurance.insurance.Option 2 – LIFE InsuranceOption 2 – LIFE Insurance*There are situations where life insurance can be more beneficial than*There are situations where life insurance can be more beneficial thanthe MPP, in this case we can refer you to one of our financial advisorsthe MPP, in this case we can refer you to one of our financial advisorswho can set this up for who can set this up for you.you.MORTGAGE INSURANCEThe Difference??Mortgage Protection Plans can pay out the balance of your mortgage in thecase of illness, injury or death.Life Insurance will pay out the full principle of you policy in these events.If you would like more information on which option is best for you please let usknow.

Page 13

HOMEFinancingFinancingcornwallcornwallMost mortgages run from 25-30 year amortizations so it isMost mortgages run from 25-30 year amortizations so it isinevitable toinevitable to renew renew your mortgage term by term. Whether you your mortgage term by term. Whether youtake a 1 year or 5 year term here are the next steps:take a 1 year or 5 year term here are the next steps:3-6 months before3-6 months before your maturity date (which should be in the your maturity date (which should be in theback of this book) You can start the renewal process! Startingback of this book) You can start the renewal process! Startingback to the pre-approval on page 1. We will need to re-do yourback to the pre-approval on page 1. We will need to re-do yourapplication as well as get updated documents from you andapplication as well as get updated documents from you andyour co-applicant (if applicable).your co-applicant (if applicable).If your term is not quite up and you need to access equity inIf your term is not quite up and you need to access equity inyour home you can look into it for you!your home you can look into it for you!Things to factor in will be the penalty to break your currentThings to factor in will be the penalty to break your currentterm, what your home is worth and what how much equity youterm, what your home is worth and what how much equity youneed to make it worth while.need to make it worth while.My TERMis almost up, What’s next:I want to REFI N ANCEbefore my term is up...What can I do?Refinancing can be a great move and we Refinancing can be a great move and we arearehere for it! At the end of the day we wanthere for it! At the end of the day we wantwhat is best for YOU so we will bewhat is best for YOU so we will becompletely honest if the refinance doesn’tcompletely honest if the refinance doesn’tmake sense for your situation. We willmake sense for your situation. We willalways be there for you and make a plan toalways be there for you and make a plan torefinance once it makes sense financially!refinance once it makes sense financially!Common uses for a refinance:RenovationsInvestmentsRepairsPay Down Debt.

Page 14

HOMEFinancingFinancingcornwallcornwall we have access towe have access toover 48 lenders which allows you to put time intoover 48 lenders which allows you to put time intoother daily life tasks while we shop around for youother daily life tasks while we shop around for youat at no costno cost. We are able to find the . We are able to find the best ratesbest rates to fit to fityour current situation whatever that may be. We areyour current situation whatever that may be. We arehere for you through the buying process and arehere for you through the buying process and arealways there to answer any questions even afteralways there to answer any questions even afteryour deal has closed. If for any reason you cannotyour deal has closed. If for any reason you cannotget approved for a mortgage at this time we will alsoget approved for a mortgage at this time we will alsoprovide you with advice on how to better yourprovide you with advice on how to better yourfinancial situation to be financial situation to be approvedapproved in the future. in the future. L E T' S W O R K T O G E T H E R T O M A K E Y O U R D R E A M S C O ME T R U E !WHY C H OO SE AMOR TG A GE AG EN T?AS MORTGAGE AGENTSAS MORTGAGE AGENTS

Mortgage Guide

Page 1

Page 2