Question 1

How much of a down payment do I need to buy a home?

Accepted Answer

5% is the minimum down payment on a home up to $500,000. If you exceed $500,000 then 10% down is required ONLY on the amount over $500,000.

Question 2

When should I apply for mortgage pre-approval?

Accepted Answer

Immediately if buying a home is a goal now or in the future. There may be some planning time needed so the sooner you know what else you may need to do, the sooner you can buy a home.

Question 3

What credit rating do I need for a mortgage?

Accepted Answer

I advise you set a goal of 680 which is considered "ok-good". This doesn't mean we can't get approval under that, but under 680 the lender and insurer have tighter guidelines to follow. At minimum, I would say 650 before applying (depending on what is in the credit report) but if you want a higher chance of approval, go for at least 680. When I review your application, I will also provide any tips you need to get the rating up if applicable. This is all part of the planning process I help you with. Credit ratings go up to 900.

Question 4

What is mortgage Term? Amortization?

Accepted Answer

The amortization is the entire expected loan period - usually 25 years. The terms are the periods within those 25years. A popular term is the 5yr but there are 1-10yr terms available.

Question 5

How long are mortgage pre approvals good for?

Accepted Answer

Credit bureaus have to be within 30days old when it goes to the lender. Besides that, if nothing changes that would negatively impact the application, it essentially continues. Any documents you provided may also need to be refreshed.

YEG

780.916.2492 Alberta, Canada

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Your Guide to Home Financing

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STEP 1 to Buy a Home