18 May

Down Payment: tips for getting it right the first time!

General

Posted by: Adam Hawryluk

All lenders require us to provide proof that you have the down payment and closing/legal costs—from your own resources (not borrowed).

Depending on where the down payment is coming from, certain documents are required. This is required to satisfy lender underwriters as well as insurers that you are not borrowing the down payment, which would change our lending ratios—and the funds are not laundered money into real estate.

Acceptable types of Down Payment Sources

Chequing/Savings Accounts

  • Provide a 3-month history of bank statements

  • -The statements must have your name clearly indicated on them—or your account number, together with something that links your account number to your name, such as a void cheque from that account—internet statements are fine as long as we can prove ownership of the account number as most don’t have a name printed on them

  • -From larger deposits (greater than $1,000) that are not pay cheques—we need to provide proof of where they came from. For example:

    • -If you deposited a tax refund, we need the tax return—or Notice of Assessment—or ideally, a copy of the tax refund cheque

    • -If you transferred money over from a savings or investment account, we need to show 90 days savings or investment account history and the transfer our to this bank account

RRSP or Investments

  • -Provide a current statement of balance

  • -Provide the most recent quarterly statement, so combined we are showing the 90-day history

Gifted Down Payment

  • -Provide a standard form gift letter

  • -Provide a bank statement in your name, showing the matching gift amount being deposited into your account

  • -Provide confirmation of the funds from the giftor’s account by way of statement  

The information and services offered on this Site are provided with the understanding that neither Dominion Lending Centres Inc., nor its suppliers or users are engaged in rendering legal or other professional services or advice. Although we strive for accuracy, timeliness and completeness, information quoted is not guaranteed and may change at any time and the information you obtain at this site is not, nor is it intended to be, legal advice.  If you require specific advice regarding your own situation please contact me for consultation.
3 May

What Can You Expect During the Mortgage Process?

General

Posted by: Adam Hawryluk

Obtaining a mortgage comes at a time of immense stress and sometimes even confusion. Our goal here is to lay out the process to be taken during the mortgage process.  We have constructed a 6 step plan that will hopefully make the time of planning and obtaining your mortgage surprise free. 

1. Introduction:

Introductions are a very important part of my business as a vast majority of my clients are brought to me through word of mouth.  Through my commitment to providing my clients with an exceptional and professional experience, they are comfortable in their decision to mention me to their friends and family members.  I hope that by the end of our time together, you feel the same way as the individual who referred you. 

2. Exploratory Meeting:

This is an opportunity to discuss any concerns, questions, and fears you may have about the process of obtaining your mortgage.  Some areas of discussion may include: CMHC fees, down payment, debt servicing, credit score, and appraisals.  At this time, it may be beneficial for you to bring the following documents: 2 years of NOAs and your current mortgage statement (if applicable).  By bringing in these documents to our first meeting, we are able to expedite this process and get your application started.

3. Explanation and Signing:

Once all required documentation has been obtained, we will be able to submit your mortgage request to a lender.  It is once we have received an approval that we will either meet or electronically send you your mortgage commitment and documents to be signed. Just like at any time during this process, feel free to ask any questions you may have. And remember, just because you are approved for a mortgage does not mean you are obligated to accept it.  If a part of your deal falls through, or you are no longer needing financing for your home, you are in no way bound to the commitment until it is registered by your solicitor. 

4. File Complete:

Your file will be marked complete when all documents required by the lender are fulfilled and all documentation has been signed. When we have received final approval from the lender, we will contact both you and your realtor regarding the completion as well as instruct your lawyer for them to complete their final steps. 

5. Instruction of Lawyer/Notary:

Your lawyer will be the final piece of finalizing your mortgage as well as your home purchase.  Your lawyer will receive documents from your realtor, lender, and myself. They will then compile the legal documents necessary to ensure the completion contains all necessary elements of a legal contract. The signing of these documents is usually completed shortly before the closing date of your property. It is here where the funds for down payment, property transfer tax, title insurance, etcetera will be requested by your solicitor to be brought to this meeting, typically via a certified cheque. 

6. Closing:

Your closing date is a very exciting time as it marks the transfer of ownership from the previous owner to you. It also marks the end of endless documents needing to be signed and the beginning of home ownership! 

The information and services offered on this Site are provided with the understanding that neither Dominion Lending Centres Inc., nor its suppliers or users are engaged in rendering legal or other professional services or advice. Although we strive for accuracy, timeliness and completeness, information quoted is not guaranteed and may change at any time and the information you obtain at this site is not, nor is it intended to be, legal advice.  If you require specific advice regarding your own situation please contact me for consultation.