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Getting Started with Gotobrokers

First-Time Home Buyer

Buying a home with the team at GoToBrokers gives you multiple advantages with the lenders and Industry professionals. We not only have priority lending status with the Canadian Banks and lending institutes but also belong to the Canadian Mortgage Professional Network. These advantages position you best with all your mortgage needs including first time buyer programs, buying your second home, buying a rental property, using your RRSP for the down payment and more.

GoToBrokers is highly respected in Canada for our code of ethics and excellent knowledge base lending. We are licensed Federally and Provincially and governed by the laws of the Real Estate Act. You are in reliable hands!

Being on the path to purchasing your first home is one of the most exciting and most rewarding moments in life! While people don’t always dream of the perfect mortgage, we do grow up dreaming of a white picket fence and our dream home. Even if you imagined your dream home as a 6-bedroom mansion, we all have to start somewhere!

CMHC and your Mortgage

You may have heard of CMHC. CMHC, Segan and Canadian Guarantee are the three mortgage insurers in Canada. We often refer to this as mortgage-backed insurance.  The purpose of this insurance is to enable you to enter home ownership with less dollars for a down payment. The magic number is 20% down to avoid this insurance. The insurance protects the bank from any losses should one default on their mortgage.  The insurer will pay out to the bank and then peruse the homeowner.  The majority of mortgages in Canada have mortgage back insurance built into the mortgage.

Conventional Mortgage vs High Ratio Mortgage
 

The high ratio mortgage is a mortgage with less than 20% equity within the home. Putting less than 20% will create a high ratio mortgage and be subject to Mortgage-backed insurance. The conventional mortgage has greater than 20% equity within the home – putting more than 20% down will create this mortgage type. The conventional mortgage has no mortgage-backed insurance.

Canadian Mortgage Stress Test

We have all heard about this lovely stress test. When we build your mortgage, we will take all of these factors into consideration:

  • All mortgages will qualify using 2% higher interest than the actual rate you will receive on your mortgage

  • We will use 3% of all your credit cards and unsecured credit line balance regardless of what your actual payment is

  • We will use up to  39% of your gross income to qualify your mortgage payment

  • We will use up to 44% of your gross income to confirm all your debts and new payment do not exceed this number

So, you are looking to purchase a second property! Congratulations! This is an incredible opportunity and we are here to help provide you with the keys to success to expand your financial portfolio and ensure stability for the future. 

Before you launch into this purchase there are a few things you should know, such as how to purchase a second property by tapping into existing home equity, the differences in requirements for vacation vs. rental or investment properties and who can qualify.

Second Property

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