1.800.723.2138 INFO@HARMERWEALTH.COM

Updated: Apr 19, 2021

Q.How do I know what I can afford?

When Shopping for a home it’s important to determine the maximum mortgage and home price you can qualify for. To determine your maximum affordability, lenders take several factors into account, including:

-How much cash or liquid assets you have.

-Whether a monetary gift is part of your down payment

-What your gross family income is.

-If you have any other debts.

Q.What documents are required to get a mortgage?

Since January, 1, 2018, the government imposed mortgage rules requiring us to collect more documents up front:

-Online Application

-Photo ID

-Salary Letter from Employer

-Recent paystub (within 30 days of the completed application)

-Previous year T4

However, required documents vary from case to case. Please chat with us so we can do the heavy lifting for you.

Q. What is the minimum down payment needed to purchase a home?

The minimum amount you’ll need for your down payment depends on the purchase price of the home you’d like to buy.

-If your home purchase price is $500,000 or less, the minimum down payment required is 5% of your purchase price

-If your home purchase price is between $500,000 to $999,999, you are required to have 5% of the first $500,000 of the purchase price plus 10% for the portion of the purchase price above $500,000 for your down payment.

-If your home purchase price is over $1 million, you are required to have 20% of the purchase price of the down payment.

If your down payment is less than 20% of the price of your home, you’ll need to purchase mortgage loan insurance.

Requirements are variable in some cases. For instance, if you are self-employed or have a poor credit history, you may require a larger down payment or to have mortgage loan insurance even with over 20% of the purchase price for your down payment.

Q. If I am moving from an existing home, should I port my mortgage?

If you have an existing property and mortgage, porting is an option you can use to avoid paying pre-payment/breakage fees associated with your existing mortgage. However, this may not always be the best solution for you. Completing a through interest and cash-flow comparison between your options will help to determine what is best for you… We offer this a complimentary service.

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