There have been a lot of changes in the mortgage industry in recent months.  If this is your first foray into the home buying process, it can seem a particularly intimidating time to purchase a home.  To help you from feeling overwhelmed when talking to your Winnipeg mortgage broker for the first time, we have put together a little something to help you get started.

We asked some of our One Link Mortgage brokers what questions they were frequently seeing from their first-time homebuyers.  Here are the questions AND the answers:

Question: What kind of a down payment do I need?
Answer: The minimum down payment is five per cent.  If the down payment is less than 20 per cent, you will need mortgage insurance from CMHC, Genworth or Canada Guaranty.

Question: Does our mortgage need to have mortgage (CMHC etc.) insurance?
Answer: Any mortgage where you put less than 20 percent down requires mortgage insurance.

Question: How can we avoid it?
Answer: Put more than 20 per cent down.

Question: If my parents are giving me the down payment, what is the maximum they can give?
Answer: There is no maximum that they can give you as long as it can verified.  The only time there is a change to the rule is if you are new to Canada.  In this case, you must have 5 per cent of your own money for the down payment to qualify under the new to Canada program.

Question: Who do we give our down payment money to?
Answer: Once your lawyer has done their calculations on the purchase they will let you know how much you will need to bring to their office.  This takes into consideration the fact you have already put some money down with your offer. They will want a certified cheque or draft payable to the law firm in trust.  This is usually a few days before closing.

Question: What is a credit score and how does it affect me buying a house?
Answer: Your credit score is a record of how well you manage credit and is used by lenders to assess your risk and financial health.  A high score is viewed by lenders as someone who is less likely to default on their repayments.  A lower credit score may cause the file to be declined by the lender or may be subject to a higher interest rate.

Question: What are the closing costs for a mortgage?
Answer: These are the fees that are paid at the end of closing of the real estate transaction.  Closing costs approximate 1.5 per cent of the purchase price.  Two of the main components of closing costs include the land transfer tax and legal fees.

Keep these FAQ's and answers handy as you prepare to meet with your mortgage broker for the first time.  They will provide you with a solid foundation as you begin your journey to homeownership!

Interested in finding out more about your home financing options?  Give us a call today at 204-954-7620.