It is a pretty exciting time when you decide to buy some property. You have been saving and saving over the years. It is an adventure that requires a bit of research. How much can you afford to purchase? How much down payment do you require?
It is a good idea to do your homework before you really start looking. What do you need to know first? Here are some online tools to make your search easier.
Mortgage Qualifier Tool
http://itools-ioutils.fcac-acfc.gc.ca/MQ-HQ/MQCalc-EAPHCalc-eng.aspx
Your first step is to see how much you can afford to buy. (You must have at least 5% down payment saved for a property up to $500,000.) In the calculator you will add your annual salary, any debts (credit card, car payments, etc) and then fill in the required fields for the property information. This tool will let you know your likelihood of being approved with the information you have provided. This is just for your information as a lender has the last word for approval.
Mortgage Payment Calculator Tool
http://itools-ioutils.fcac-acfc.gc.ca/MC-CH/MC-CH-eng.aspx
Once you know approximately how much mortgage you qualify for, you can then check out this tool to find out what your mortgage payments will be. (Keep in mind that it does not include property tax or if you need mortgage loan insurance. Mortgage loan insurance will be needed for down payments of less than 20%.)
Mortgage Premium Calculator
https://www.cmhc-schl.gc.ca/en/co/buho/buho_023.cfm
If you are purchasing a home and have less than a 20% down payment then you will be required to have mortgage loan insurance. Sometimes even if you have a 20% down payment you will still be required to purchase mortgage loan insurance (dependent on your lender).
This calculator will give you the amount of the insurance and the premium rate. You can choose to pay the premium amount in a lump sum or it can be added to your mortgage. If you decide to pay it through your mortgage, the amount will be included together with your principle, interest, and taxes.
After using these calculators you can start looking for your own property. However, it can be very frustrating to search on your own as some really good deals are sold before you get a chance to look at them.
It is really easier if you get help from a professional real estate team. The Winch Walton Team can vet properties for you, find out if they are conditionally sold or not and they will even be aware of properties before they come online to the general public. They will take into account your budget and your likes and dislikes. Don’t miss out on your future home, call Winch Walton to help guide you through the real estate purchasing process.
Our buyers see listings before they hit MLS.ca, please contact us today to discover how!