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PERMACK & ASSOCIATES HOME LOAN PROCESS

DEMYSTIFYING HOME LOANS

If you haven’t experienced it before, the home loan process can feel overwhelming, but our agents will help you stay informed throughout the process, from pre-approval to closing. The first thing to do is consult with a mortgage specialist (or two). If you don’t already have someone in mind, we partner with some of the best lenders in the industry, and we’d be happy to introduce you, so you’ll be taken care of.

Get Pre-Approved

Before you start looking for a home to buy, it’s a good idea to meet with a Mortgage Specialist to get pre-approved for a loan amount. At this stage, the Lender gathers information about income, assets and debts of the borrower (you) to determine how much house you may be able to afford. This includes a credit report, pay stubs, Tax Returns and recent bank statements. There are a variety of different loan programs - if you're a first-time buyer, for example - so make sure to get pre-qualification for the specific programs that best suit your needs.

Advantages of pre-approval

    • Don’t waste time looking at properties you can’t afford.
    • Don’t worry about rising interest rates – guarantee the current interest rate for 60-90 days.
    • An advantage when writing offers because the Seller knows you’re more likely to get a loan.
    • Save time during closing because you’ve already assembled your paperwork.

      Your Down Payment

      The down payment on a home purchase typically ranges from 5% to 25% of the total value of the home. The obvious source of money for your down payment is either your savings or the proceeds from the sale of a home you already own.

      While it is possible to buy a home with as little as 5% down, the amount of your down payment plays a factor in determining the type of mortgage will be able to secure. You may want to consider whether your mortgage will be conventional, or high-ratio.

      What's the difference between a conventional and high-ratio mortgage?

      • Conventional mortgage: Your down payment is at least 20% of the purchase price.
      • High-ratio mortgage: Your down payment is less than 20% of the purchase price and must be insured by CMHC or Genworth. An insurance premium will apply.

      We Help You Get The Best Loan

      Start The Process

      We’ll help you find the best local mortgage professional to get you competitive rates and the programs that best fit your individual needs. Fill out this form and we’ll connect you with a lender today!

      Mortgage Application & Processing

      What happens when a loan goes "live"

      When you find property you’re ready to buy, your lender will help you complete a full mortgage loan application, and talk you through the various fees and down payment options. The application is submitted to processing, where the documents are reviewed and appraisals and title examination are ordered. Then the loan is sent to an underwriter, who reviews and approves the entire loan if it meets compliance.

      Closing Your Purchase

      Signing and Finalizing the deal

      Don’t be surprised if you’re asked for additional documentation or clarification throughout the process. Once your loan is approved, don’t forget to set up homeowners insurance. Your documents will be sent to the title company, where you’ll sign for the new home and pay any remaining costs. Then the loan is recorded and you get the keys. Congratulations, happy homeowner!

        CLOSING COSTS

        When you make an offer on a home, there are several fees that need to be payed by the buyer. The following costs will be your responsibility upon closing: 

        • Property Transfer Tax (PTT): For properties over $450,000 or for investment properties, the PTT is 1% on the first $200,000 of the purchase price and 2% on the balance of the purchase price. This tax is not applicable on purchases of new real estate under $750k
        • Legal fees and Disbursements: typically these costs are between $750 and $1,000. Inspection fees: these fees vary based on property type; but typically run between $350 and $500.
        • Site survey: for detached properties, some lenders may require a site survey. If required, this will be ordered by the lawyer and will cost approximately $300-$350.
        • Title insurance: some lenders may require this, and if so, it will be ordered by the lawyer and will cost approximately $150-$200.
        • Appraisal fee (depending on the lender): $165-$250
        • Mortgage Application fee: in some cases, the lender will require a mortgage application fee. This can be discussed with your mortgage lender.
        • Moving costs: including cable hook-up, movers, packing supplies, etc.
        • GST: if you are purchasing a brand new property, you will be required to pay GST.

        Get Started Today

        Start The Home Loan Process

        Selling Your Home

        Trusting the sale of your home means putting your faith in our entire network of experts in the Real Estate market, property marketing, and loan processing. We provide seller confidence and work hard to keep our fingers on the pulse of the real estate market, noting fluctuations and corrective strategies that make your home sellable in any market.

        We can work together to best decide on the price of your home to sell and are confident that we can find the right buyer for your home.

        Get Started