Getting ready to buy a new home? Whether you are a first-time home buyer or planning for your next home, you will want to consider the financial aspects of your decision carefully. What’s the best approach to financing your purchase? How much can and should you borrow? What’s involved and how long will it take to get your financing in place?

Being comfortable with all aspects of your mortgage is a big part of enjoying your new home. Mortgage lenders are constantly improving their systems and developing new approaches to make the home buying process easier than ever for consumers.

Information
As a new home buyer, you have easy access to financing information and advice.

• The internet. Mortgage lenders and insurers offer a wealth of online information. Find out about the buying and borrowing process, as well as financing options. Check “renting versus buying” comparisons. Use a mortgage calculator to get an idea of the loan amount you qualify for, and what the monthly payments would be. Explore how different purchase prices and downpayments would affect your monthly payments.

• Printed information. Most lenders have a full range of brochures and worksheets that provide the same information and tools as their Web sites. Drop in at local branch offices for copies of these materials. Some lenders also have a toll-free number for 24-hour access to information.

• Personal consultation with lenders. Make an appointment with a branch mortgage specialist to discuss your buying intentions and get mortgage pre-approval. Lenders offer flexible business hours to make it easier to for you to schedule a meeting, including evenings and weekends. A growing number of lenders also have mobile mortgage specialists who will come to your home. “We know that life can be hectic at times,” explains Kathy Gregory. “That’s why our mortgage specialists are available outside of normal banking hours, allowing you to discuss mortgage financing in the comfort of your own home. Days, weekends or evenings…we’ll work around your schedule.”

• Professional new home builders. Your builder can be an excellent source of financing information and assistance. Larger builders, in collaboration with their financial partners, may offer mortgages to their customers at preferential rates. Mortgage experts may be available in show homes during peak hours. At a minimum, your builder can provide information and refer you to lenders who are well versed in financing new home purchases.

Easy application and fast approval
Home buyers have several options when it comes to applying for a mortgage loan. Simple applications can often be made over the Internet, or you can get the process started with a phone call. You may still need to meet with the lender in person to finalize the application.

Today’s mortgage specialists are highly trained and well equipped to process your application quickly. This reduces the stress and uncertainty of waiting for an answer; in a “hot market”, a quick turnaround can be key to getting the home you want. You can often get the results of your application immediately. This may be a conditional approval, pending verification of income, and so on.

If the mortgage represents 75% or more of the value of the home, the loan must be insured against default. A separate application must be submitted to a mortgage insurance company, but networking between lenders and insurers means little or no delay for mortgage customers. “Electronic processing has allowed us to greatly improve our response time,” says Peter Vukanovich, President of Genworth Financial Canada. “Currently, over 50% of applications for mortgage insurance are approved immediately, and 75% within a few hours.”

Great access to information, personalized home financing and fast, effective customer service—mortgage lenders and insurers work with you to make your dreams come true.

For more information, contact mortgage lenders and professional new home builders in your community.

TD Canada Trust
Genworth Financial Canada

back to Financing your new home