Modern Home

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.

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