Getting Ready To Buy?Whether you are tired of renting, looking to buy something bigger or looking for a second home, saving money for a down payment and closing costs can potentially be a major challenge or obstacle. Your dream of home ownership can be realized with the right timing and strong financial planning.
Below is a list of key items to consider when applying for a mortgage:
With as little as 5% down payment, you can realize your dream of home ownership. 20% of the purchase price is usually required for a conventional mortgage to avoid mortgage insurance premiums. Your down payment can be derived from one or more of the following sources:
- YOUR OWN RESOURCES
If held in your bank account, 3 months history of your bank account to verify down payment funds are available. If using RRSPs, a 3 month history will also be required.
- FROM THE SALE OF AN EXISTING PROPERTY
You will need to provide a Sale agreement. You may also be asked to provide a recent mortgage statement to confirm the equity in the home.
- BORROWED FUNDS
A recent account statement showing available funds and payment information.
- GIFTED FUNDS
You will need to provide a signed gift letter from an immediate family member and may be asked to provide proof of deposit of gifted funds into your bank account.