HOME OWNERSHIP GUIDE · you’re looking to purchase a home. With a pre-approval you’ll find out the amount you can borrow so you can shop for your dream home with confidence. Your

HOME OWNERSHIP GUIDEHOME OWNERSHIP GUIDEHere’s Your

From The Home Of The RightMortgageFrom The Home Of The RightMortgage®

HOME OWNERSHIP GUIDE

WHY USE A MORTGAGE BROKER

Access To Many Lenders, from major banks to private lenders, with ONE application to ensure we find you the mortgage with the rate and terms that are right for you.

Expert Independent Advice. Remember we work for you not the lender.

Specializing In All Types Of Mortgages.

Our Services Are At No Cost To You!*

Flexible Hours. Simple Application Process.

Ongoing Consultation. Including annual mortgage check-ups, updates and renewal renegotiation (that’s right you can save again on your mortgage renewal)

*OAC. Some restrictions apply.

Amortization: Length of time over which the mortgage will be repaid.

Mortgage term: Length of time that the mortgage contract conditions and interest rate is fixed.

Closing Costs: Costs in addition to the purchase price of the home that are payable on closing day. See the Process & Costs worksheets for more details.

Down Payment: The portion of the home price that is not financed by the mortgage loan. It must come from the buyer’s own funds or other eligible sources before securing a mortgage.

Equity: The difference between the price for which a home could be sold and the total debts registered against it.

Fixed / Variable Mortgage Interest Rate: A fixed rate is a locked-in rate that will not increase for the term of the mortgage. A variable mortgage interest rate can fluctuate based on market conditions, but the mortgage payment remains unchanged.

High-ratio mortgage / Conventional Mortgage: A high ratio mortgage is a mortgage loan higher than 80% of the lending value of the property. A conventional mortgage is a mortgage loan up to a maximum of 80% of the lending value of the property.

Open / Closed Mortgage: An open mortgage is a flexible mortgage that allows you to pay off your mortgage in part or in full before the end of the term. A closed mortgage, in some cases, cannot be paid off in whole or in part before the end of the term. In other cases, the lender may allow for partial prepayment of a closed mortgage in the form of an increased mortgage payment or a lump sum prepayment.

TALKING MORTGAGES - UNDERSTANDING THE LINGOBelow is a quick reference list of the most used mortgage terms.


THE IMPORTANCE OF A PRE-APPROVAL

How Much House Can You Afford

Hold That Rate


Getting a mortgage pre-approval is a great first step (even before you see a realtor) when you’re looking to purchase a home. With a pre-approval you’ll find out the amount you can borrow so you can shop for your dream home with confidence.

Your pre-approval holds the rate for 60-120 days, so if rates go up while you were shopping for a home, you can still get the low rate you were offered on your pre-approval. However, if rates go down you can definitely take advantage of low market rates. So win win.

Your Realtor Will Love You

Nothing makes a realtor happier than a serious buyer. A mortgage pre-approval saves time for everyone involved and will allow for a more efficient house hunt.

MAKING YOUR DOWN PAYMENT

Less Than $500,000 Homes

If you’re purchasing a house for less than $500,000, the minimum down payment is 5%.

If the house purchase price is between $500,000 and $999,999 then the minimum down payment is:

- 5% on the first $500,000 - plus 10% on the remaining amount over the $500,000.

If the purchase price is $1 Million or more, the minimum down payment amount is 20%

All mortgages with down payments less than 20% are called high ratio mortgages and require Mortgage Default Insurance. This amount is usually added on to your mortgage.

DOWN PAYMENTS LESS THAN 20%


Homes Between $500,000 - $999,999

Over 1 Million $ Homes

FIRST TIME HOME BUYERS INCENTIVES

$5000 Income Tax Credit

To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual,* the credit will provide up to $750 in federal tax relief.


The Government of Canada has set the Home Buyers’ Plan withdrawal limit to $25,000 per person for withdrawals to provide first-time homebuyers with greater access to their RRSP savings to purchase or build a home. You have 15 years to repay the amount you with-drew from your RRSP.*

RRSP Withdrawals

Depending on your province, a land transfer tax refund may be available for first time home buyers.

*To obtain more information on the First-Time Home Buyers’ Tax Credit and the Home Buyers’ Plan visit www.cra.gc.ca

Land Transfer Tax Refund

BUYING YOUR NEXT DREAM HOME


You can pay off your existing mortgage, pay the penalty for breaking the mortgage and get a brand new one. We would usually go that route if the interest saved on the new mortgage outweighs the penalty cost.

Breaking Your Mortgage

You can avoid paying the penalty by taking your mortgage with you to the new property. There are several porting options depending on which lender you’re currently with.

Ultimately the move we make will be the one that saves you the most money.

Port Your Mortgage

Finding a new place to call home is exciting. Whether you’re moving to a new neighbourhood, moving up or moving to the house next door, we will help you make the right move when it comes to your mortgage. Here are a couple of options we will explore:

YOU’LL NEED A TEAM

Me! Your Mortgage Professional


RECOMMENDATIONS

Real Estate Agent

Lawyer

Home Inspector

Insurance Broker

The Appraiser

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PROCESS & COSTS WORKSHEET

Get pre-approved and find your dream home.Get pre-approved and find your dream home.


You will need a formal mortgage approval to ensure the lender approves the required financing on the property you chose. A mortgage appraisal, might be requested by the lender at this stage.Cost: Mortgage appraisal (if needed) - average $250 - $450(Mortgage Alliance Perk - Special broker pricing may be available)

COSTS

1Get a mortgage approval.Get a mortgage approval.

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It’s always advised to get a home inspection to make sure there are no surprises. Cost: Average $500.

Arrange for a home inspectionArrange for a home inspection3

A deposit must be made when you make the offer to purchase. This will count as part of your down payment.

Make the depositMake the deposit4

Start your search for home insurance. This needs to be in place at closing and will be requested by the lawyer and lender. (Mortgage Alliance Perk - special discount might be available. Ask me for details)

Shop for home insuranceShop for home insurance5

if required

TOTAL UPFRONT COSTSTOTAL UPFRONT COSTSWait to close ...tic toc ....tic toc

PROCESS & COSTS WORKSHEET

ON CLOSING


Covers any loss caused by problems in the ownership of the property.

COSTS

6Get title insuranceGet title insurance

Your down payment amount must be made at closing. Remember your deposit will be part of that amount.

Make your down paymentMake your down payment

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Reimburse the seller for any amounts already paid for in advance.

Reimburse pre-paid property taxes Reimburse pre-paid property taxes 8

Only required in some provinces and is a percentage of the home price. Remember if you are a first time buyer, you may qualify for a rebate.

Land registration / transferLand registration / transfer9

Once the sale is complete you will need to pay legal fees. Cost: Average $1200.

Pay your lawyerPay your lawyer

TOTAL CLOSING COSTSTOTAL CLOSING COSTS

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if required

Get Your Keys and celebrate

WE LOVE TO SAVE YOU MONEY - ENJOY


This Offer Is Available By Appointment Only.

1-877-366-3487 www.mortgagealliance.com

Number Date of Issue

TMAC4995454

Contractor/Builder Pricing Certificate

Commercial Sales Division

This certificate entitles you to purchase from The Brick your choice of Home Furnishings, Appliances or Electronics at Builder/Contractor prices!

ALL OTHER PROVINCESAlbertaEli [email protected]

403-726-6200 BC 604-517-5800

Please call for an appointmentCourtesy of:

ON Lic#10530

Government Savings

GST/HST New Housing RebateIf you’re purchasing a newly built home for less than $450,000 you can get a rebate on GST/HST paid on the purchase. Visit www.cra-arc.gc.ca for more information.

Up to 25% CMHC RefundGet up to 25% refund on your CMHC mortgage loan insurance premium when you purchase an energy-efficient home or complete energy-saving renovations. Visit www.cmhc.ca/greenhome for more details.

HOME OWNER GUIDEHOME OWNER GUIDE

GEARING YOU UP FOR THE SEARCH & BEYOND

Whether you’re buying your first home, searching for your next dream home, renewing your mortgage or even just moved into your new home, our MOPOLO App gives you access to great resources totally FREE.

- FREE home valuations (updated montly)

- Find out how upgrades affect your home value - FREE credit score (updated monthly)

- Apply online anytime anywhere

PLUS keep a record of your home valuables and their warranties right on your phone through our exclusive inventory tracker, access current rates, calculators and more!

DOWNLOAD MY FREE MOPOLO APP

An App Like No Other

MOPOLO

Then enter my name under “Find A Broker”

MINIMIZE YOUR MORTGAGE SWEEPSTAKES

Who QualifiesAll customers who close their mortgage with a Mortgage Alliance professional in 2017 are eligible. See complete rules for details at mortgagealliance.com/minimize-your-mortgage-sweepstakes

The DrawThe Grand Prize will be drawn on February 28th, 2018.

The Prize:Grand Prize: The value of your qualifying mortgage up to a maximum of $100,000.

In Our Minimize Your Mortgage SweepstakesIn Our Minimize Your Mortgage SweepstakesWin *

* win the value of your mortgage up to $100,000.See contest rules for details at mortgagealliance.com/minimize-your-mortgage-sweepstakes


MAKE IT YOUR DREAM HOME - GET THE RIGHT CARD


APPLY TODAYVisit my website or

apply on my MOPOLO app

$0 Annual Fee

REWARDS

Eligibility for rewards and/or account credit is subject to the terms and conditions of the Collabria Cash Rewards program. Terms and conditions are available online at collabriacreditcards.ca/cashbackterms04. Cash back earned as a percentage is for illustration purposes only. The Collabria Cash Rewards program is points based, and points may be redeemed for $.01 per point as an account credit. The promotional offer of 5% cash back, or 5 bonus reward points per $1 spent, on home improvement purchases applies to all qualified purchases made in the first 100 days after account opening. Once 5,000 bonus reward points are earned through this promotional offer, your reward earn rate will revert to the standard program.

The Collabria MasterCard is issued by Collabria Financial Services Inc. pursuant to a license from MasterCard International Incorporated. MasterCard and the MasterCard Brand Mark are registered trademarks of MasterCard International Incorporated.

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2% 1% AT GROCERY STORE

QUALIFIED NET PURCHASES1

1

Mortgage Alliance CollabriaCash Back MasterCard®

Cash BackOn Home ImprovementPurchases

5% *(First 3 months after account opening)

ON ALL OTHER

NOTES


Documents

HOME OWNERSHIP GUIDE · you’re looking to purchase a home. With a pre-approval you’ll find out the amount you can borrow so you can shop for your dream home with confidence. Your