Mortgage Information

Peggy Arnold  can make buying your home, whether it be your first or 10th home, a wonderful experience and a memorable one.  
Additional benefits to my clients include:

In today's competitive, results-driven consumer market, we can provide the best mortgage services available.


Know What You Can Afford

Determine Your Financial Situation

Before you start looking for a home, it is important that you determine your personal finances so that you will know what kind of price range you can comfortably afford.

We can prequalify you in five minutes so that you have realistic expectations when you start looking for a house.

Arrange Your Financing Before You Start Looking

If you have already been pre-approved, your offer will be more attractive to the seller and this could mean the difference between getting the home you want and having to search all over again.

What should you look for - Flexible Mortgage Options. For example:

• How long before closing is your interest rate guaranteed?

• Prepayment (monthly or yearly)

• Payment frequencies (weekly, bi-weekly, monthly). A higher frequency payment can save you a lot of interest.

• Portability - if you sold your home, could you carry the mortgage over to your new purchase without penalty?

• Assumability - can the buyer of your property assume your mortgage?

Our Mortgage Manager has access to the most competitive rates and flexible terms in the mortgage market, freeing up your time so you can look for your new home.

Determine Assets Available For Your Down Payment

• Cash (do not use all of your cash for your down payment, as you will need some to cover your home buying expenses - see list below);

• Stocks;

• Mutual funds;

• Canada Savings Bonds;

• GICs;

• RRSPs

There is a new government program that allows you to withdraw your RRSP without penalty. The details are outlined below.

• Maximum $20,000 withdrawal (can be combined with spouse for total of $40,000)

• Minimum of 1/15th must be repaid each year

• Start paying 2nd year after buying home

• Must become principal residence within one year of acquisition

• Must not have owned a principal residence in any of the last five years

• Funds must be in the RRSP three months prior to completion

If short of cash, you have another option with the 5% Down Payment Program that the government implemented to boost the housing industry. The details are outlined below.

• Must have an additional 1.5% to cover closing costs

• Maximum purchase price $250,000

• Borrower may select any term, but must qualify at three year rate (minimum)

• Premium 3.75% of loan amount

For a purchase price over $250,000, CMHC offers a 10% Down Payment Program with no maximum purchase price.

Mortgage Insurance - if you finance more than 75% of the cost of your home, this is considered a high ratio mortgage and  mortgage insurance will be required.

• Premiums can be added to the mortgage. Any mortgage term may qualify.

• Mortgage insurance is provided by Canada Mortgage and Housing Corporation and G.E. Capital Mortgage Insurance Canada.

• Application fee for all levels is $165

Keep Some Cash To Cover Various Taxes And Expenses Incurred While Buying A Home

• Legal Fees - on an average priced home you can expect to disburse about $1000

• Moving expenses

• Property insurance

• Lender may require you to pay for an appraisal of the property - typical cost of $175 to $250)

• Vendor's prepaid taxes - balance of cash to be forwarded to the Seller for his portion of the payment of the municipal taxes

• Building inspection - approx. $300 , but varies

Examples of Mortgage Payments

The calculations below are based on an annual interest rate of 7% for a five year term. These figure are for illustrative purposes only.

Mortgage Amount	Monthly Payment @ 6%	Monthly Payment @7%
$100,000.00	639.81	700.42
$125,000.00	799.77	875.53
$150,000.00	959.73	1050.64
$175,000.00	1119.69	1225.75
$200,000.00	1279.65	1400.86

We hope this information will help you and answer some of the questions you may have if you are thinking about buying a home. If you need assistance with your mortgage, let us put our expertise to work for you.

For further information or to apply for a mortgage, please contact:

PEGGY ARNOLD (204) 334-2800 or EMAIL