First Mortgages
A first mortgage is the primary loan on your home. If you're buying a home...this is what you're looking for!
What You Need to Know...
When applying for a mortgage, lenders will look at what is commonly known as the 5C's of Credit: Character, Capacity, Collateral, Credit and Capital. So what do these mean?
Character = who you are as a person, and yes, they may even Google you!
Capacity = your ability to service the requested debt and any other debts you may have.
Collateral = this is about the property (location, condition, history, etc.)
Credit = your past and current credit history (trades, payment frequency, usage)
Capital = your income and savings
You will need to have a minimum 5% downpayment when buying a home you plan to live in. However, this is applicable to properties valued at $500,000 or less. For properties valued between $500,001 - $999,999 you will need to have 5% of the first $500,000 and 10% of the balance. (eg. a home valued at $750,000 would need a minimum downpayment of $50,000). Homes valued at over $1 million must have a 20% downpayment.
In addition to your downpayment, you will also be required to have captial for closing costs; which average 1.5-4% of the home value depending on location.
