Usually, the first step in the process of buying a home is calculating your borrowing capacity. Lending institutions will want to know what your revenues are compared to some expenses in addition to the future mortgage payment. This is generally done with the help of two ratios; GDA (Gross Debt Amortization) and TDS (Total Debt Amortization).

 

This is how it is calculated (link to be included). The results of the calculations are critical to determine your capacity to repay your debts. The lower the ratio is, the easier it is for you to fully repay your debts. In addition, the lenders would like to know your credit score. This report is a history of how well you managed your loans, credit card payments and any relevant information regarding credit. The higher your score the better. Although a mortgage broker and lending institutions will have access to a much more detailed report, it is possible for you to get yours here:

• Équifax (lien externe)

• Trans Union (lien externe)
   

The second step is to determine the amount of your down payment. There presently exists several ways to go about this (savings, HBP, family donations, sale of of an assest, etc.) There are also ways to become a home owner without any cash down payments. Certainly, we must not forget that when investing in real estate, there are always additional fees such as inspection fees, transfer tax, moving expenses etc. I suggest that you visit our website monpremiertoit.ca (à venir) to completely understand this process.

 

Thirdly, it is possible to have a pre-approved mortgage before searching for a property. By doing this, you will have all the confidence needed to make a well suited offer when you find the home of your dreams. 

 

And finally, this whole process ends by applying for a mortgage. With over 20 mortgage lenders that I work with, I will find you the best product at some of the most competitve rates.

 

Whether it’d be for a pre-approval or a mortgage loan, I am able to help you with your needs. You can reach me at 514-799-2278 or just simply push the Online Application button. It would be my pleasure to assist you on your future endeavors.