01. What if I do not have a Real Estate Agent?
At Dream Key Mortgage, we are focused on making your experience as seamless as possible. If you are not currently working with a real estate professional, we have a team of trusted and experienced business partners who can help you navigate through Toronto’s dynamic real estate market, while working closely with our team to ensure your best interest is always protected. Get in touch with Dream Key Mortgage today to discuss the right real estate partners for you.
02. What Realtor fees will I incur on my purchase?
As a purchaser, compensation for realtor services is the responsibility of the Seller and not the Buyer, which means that having a Realtor represent you in the purchase of real property is absolutely free!
03. When is my Down Payment Due?
When initially offering on a property, it is recommended to put down a minimum of 5% of the purchase price as a “deposit” which will be due within 24 hours of acceptance of an offer. While your deposit will form part of your down payment, it is important to note that the deposit and down payment are two different things and your total down payment will be due at closing. Shortly before your closing date, your lawyer will walk you through all of the disclosures and terms & conditions in your Agreement of Purchase and Sale, including a statement of closings costs associated with the transfer. It is at this time where you will decide and submit the remaining funds that will contribute to your total down payment for your purchase, and the remaining balance will be your mortgage amount.
04. How much money do I need to purchase a property?
As a first-time home buyer, you’ll want to ensure that you have enough capital saved up and accessible to cover the initial down payment, as well as various closing costs associated with your purchase. As mandated by the Canadian Government, a minimum of five percent of the purchase price is required for any down payment of property; however, depending on the circumstance and investment goal, it is recommended to put down as much as possible to minimize the costs associated with insured mortgages.
05. What if I can't afford a down payment?
If you do not have enough of the down payment readily accessible, you can withdraw up to $25,000 from an RRSP using the Home Buyers Plan (HBP) interest-free and must be paid back within 15 years. The down-payment can also be borrowed with an unsecured borrowing credit facility like a personal line of credit or a personal loan. There are borrowed down-payment programs available from insurance companies which are known as “flex down”. For more information on borrowing options, consult a Dream Key Mortgage Agent.
06. When should I get my Mortgage Pre-Approval?
Prior to contacting a realtor and before looking for properties, the first thing you should do is to get a Mortgage Pre-Approval. Once you know your home buying price range, you can efficiently start your search.
Get Pre-Approved