As Chilliwack's leaders in mortgage lending, Harmony Mortgage Group uses their experience in the lending community to search out the best mortgage product to suit your needs.
As a mortgage broker we will help you first qualify, then hold a rate for you while you shop. This is why making a pre approval with your mortgage broker at Harmony Mortgage Group is the most important first step in buying a home.
Starting Your Search
Here are
some ways to begin looking for your new home:
- Word-of-mouth
Tell everyone you know that you are looking for a new home. Surprising
things sometimes happen. For example, you might hear about a home that is
just becoming available on the market.
- Newspapers and real estate
magazines
Check the new homes section in daily newspapers. Look for the free real
estate magazines available at newsstands, convenience stores and other
outlets. These publications are free and give pictures and short
descriptions of homes for sale.
- The Internet
Check out real estate websites, such as realtor.ca. These websites give information
and pictures of a wide range of properties. Most sites let you search by
location, price, number of bedrooms, and other features.
- “For Sale” signs
Drive, bike or walk around a neighborhood that interests you and look for
“For Sale” signs. This is a good way to find homes that are being sold by
the owner and are not listed with an agent.
- Visit new development sites
If you are looking for a newly built home, you can see available models
and get information from builders.
- Work with a realtor
For most buyers, a realtor is key to finding the right home.
Useful Tips for Your Search
- Keep records
Whether you have a realtor or are looking by yourself, visit lots of homes
before choosing one. Some things to compare are the home’s energy rating,
utility costs, property taxes and major repairs. These will affect your
monthly housing expenses. You can ask to see copies of utility and other
bills. Use the CMHC Home Hunting Comparison Worksheet to make
sure you get all the information you need to compare homes.
- Check out the property’s
current financing
If the existing mortgage on the home is favorable, it may be possible to
take it over from the vendor. It may even be possible to get a vendor take back mortgage, to help close the deal.
- Think twice
Even if a home seems perfect, go back and take a closer, more critical
look at it. Visit it on different days and different times of the day.
Chat with the neighbours. Look deeper — don’t be distracted by attractive
surface details.
- Energy Rating
Some houses and new homes in Canada have an Energy Rating that describes
the energy efficiency of the home. An energy-rated home usually has a
sticker with the rating on the electrical panel. The energy rating is on a
0 – 100 scale. The higher the rating, the more energy-efficient
is the home, and the less it costs to operate.
- CMHC statistics and analysis
CMHC has the latest statistical information and analysis of housing
trends. Our Market Analysis Center tracks information for local,
provincial and national markets.
Making an Offer to Purchase
After you
have found the home you want to buy, you need to give the vendor an Offer to Purchase (sometimes called an
Agreement of Purchase and Sale). It is very helpful to work with a realtor
(and/or a lawyer/notary) to prepare your offer. The Offer to Purchase is a legal document
and should be carefully prepared.
These
items are typically included:
- Names
Your
legal name, the name of the vendor and the legal civic address of the
property.
- Price
The
price you are offering to pay.
- Things included
Any items in or around the home that you think are included in the sale
should be specifically stated in your offer. Some examples might be window
coverings and appliances.
- Amount of your deposit
- The closing day
The closing day is the date you take possession of the home. It is usually
30 – 60 days after the date of agreement. But, it can be 90 days, or even
longer.
- Request for a current land
survey of the property
- Date the offer expires
After this date the offer becomes null and void — that means it’s no
longer valid.
- Other conditions
Other conditions may include a satisfactory home inspection report, a
property appraisal, and lender approval of mortgage financing. This means
that the contract will become final only when the conditions are met.
What Happens After You Make an Offer to Purchase?
Imagine
that your realtor has helped you prepare an Offer to Purchase. This offer
includes all the details of the sale. To be extra cautious (since you know an
Offer to Purchase is legally binding) ask your lawyer to look at it before
showing it to the vendor. The realtor presents the offer to the vendor. What
can you expect to happen next? There are three possible responses.
- Response 1
The vendor accepts your offer. The deal is concluded and you move on to
the next steps in the buying process.
- Response 2
The vendor makes a counter-offer. The counter-offer might ask for a higher
price, or different terms. You can sign the offer back to the vendor,
offering a higher price than your original offer, but lower than the
vendor’s counter-offer. If the vender accepts this counter-offer, the deal
is concluded.
- Response 3
The vendor makes a counter-offer, asking for a higher price or different
terms. If a counter-offer is returned to you at a higher price, ensure
that you know exactly how much you can afford before you start
negotiating. You don’t want to get caught up in the heat of the moment
with costs you can’t afford. You reject the counter-offer because the
price is still too high, or you can’t agree to the conditions. The sale
doesn’t go through, and your deposit is returned.
A Homeowner’s Experience
Once your
Offer to Purchase has been accepted, go to see
your Chilliwack Mortgage broker, Harmony Mortgage Group. At Harmony Mortgage Group we will verify (and update, if necessary) your financial
information and put together what’s needed to complete the mortgage
application. Your Chilliwack Mortgage Broker, Harmony Mortgage Group will help you decide
between the various types of mortgages, terms, interest rates, amortization periods and, payment schedules that are available.
Types of Mortgages
Conventional Mortgage
A
conventional mortgage is a mortgage loan that is equal to, or less than, 80% of
the lending value of the property. The lending value is the property’s purchase
price or market value — whichever is less. For a conventional mortgage, the
down payment is at least 20% of the purchase price or market value.
High-ratio Mortgage
If your
down payment is less than 20% of the home price, you will typically need a
high-ratio mortgage. A high-ratio mortgage usually requires mortgage loan
insurance. CMHC is a major provider of mortgage loan insurance, however there are also 2 other insurers, Canada Guaratnee and Genworth. Depending on your specific needs the lender your Chilliwack Mortgage brokers at Harmony Mortgage Group will chose the insurer that fits your needs.
Mortgage Term
At Harmony Mortgage Group, as Chilliwacks leading Mortgage brokers we will tell you about the term options for the mortgage. The term is the
length of time that the mortgage contract conditions, including interest rate,
will be fixed. The term can be from six months up to ten years. A longer term
(for example, five years) lets you plan ahead. It also protects you from
interest rate increases. Think carefully about the term that you want, and
don’t be afraid to ask your lender to figure out the differences between a one,
two, five-year (or longer) term mortgage.
Mortgage Interest Rates
Mortgage
interest rates are fixed, variable or adjustable.
Fixed Mortgage Interest Rate
A fixed
mortgage interest rate is a locked-in rate that will not increase for the term
of the mortgage.
Variable Mortgage Interest Rate
A
variable rate fluctuates based on market conditions. The mortgage payment
remains unchanged.
Adjustable Mortgage Interest Rate
With an
adjustable rate, both the interest rate and the mortgage payment vary, based on
market conditions.
Open or Closed Mortgage
Closed Mortgage
A closed
mortgage cannot be paid off, in whole or in part, before the end of its term. With a closed mortgage you must make only
your monthly payments — you cannot pay more than the agreed payment. A closed
mortgage is a good choice if you’d like to have a fixed monthly payment. With
it you can carefully plan your monthly expenses. But, a closed mortgage is not
flexible. There are often penalties, or restrictive conditions, if you want to
pay an additional amount. A closed mortgage may be a poor choice if you decide
to move before the end of the term, or if you want to benefit from a decrease
of interest rates.
Open Mortgage
An open
mortgage is flexible. That means that you can usually pay off part of it, or
the entire amount at any time without penalty. An open mortgage can be a good
choice if you plan to sell your home in the near future. It can also be a good
choice if you want to pay off a large sum of your mortgage loan. Most lenders
let you convert an open mortgage to a closed mortgage at any time, although you
may have to pay a small fee.
Amortization
Amortization
is the length of time the entire mortgage debt will be repaid. Many mortgages
are amortized over 25 years, but longer periods are available. The longer
the amortization, the lower your scheduled mortgage payments, but the more
interest you pay in the long run. If each mortgage term is five years, and the
mortgage is amortized over 20 years, you will have to renegotiate the
mortgage four times (every five years).
Payment Schedule
A
mortgage loan is repaid in regular payments — monthly, biweekly or weekly. More
frequent payment schedules (for example weekly) can save some interest costs by
reducing the outstanding principal balance more quickly. The more payments you
make in a year, the lower the overall interest you have to pay on your
mortgage.
Closing Day
Closing
day is the day when you finally take legal possession and get to call the house
your home. The final signing usually happens at the lawyer or notary’s office.
These are
the things that happen on closing day:
- The lender chosen by your mortgage broker will give the
mortgage money to your lawyer/notary.
- You must give the down
payment (minus the deposit) to your lawyer/notary. You must also give the
remaining closing costs.
- Your lawyer/notary
·
- Pays the vendor
- Registers the home in your
name
- Gives you the deed and the
keys to your new home
Moving
Hiring a Mover
When
planning your move, friends or relatives may be able to recommend a
professional moving company. Don’t forget to ask the mover for references. Ask
the mover for an estimate and outline of fees (do they charge a flat rate or
hourly fee?). Once you’ve chosen a mover, ask them to come to your home to see
what will be moved in case the estimate needs to be changed.
You’ll
want to ensure that your belongings are insured during the move. Your home or
property insurance may cover goods in transit. Call your broker or insurance
company to be sure. Ask if you are fully covered. Many moving companies offer
additional insurance coverage. Be aware that professional movers are not
responsible for items such as jewellery, money, or important papers. Move these
yourself to keep them safe.
If you
decide to do your own packing, keep in mind that you will need the proper
materials, and that packing can take up a lot of time.
Moving Day
On moving
day, go through the house with the van supervisor and give him (or her) any
special instructions. The supervisor will note the condition of your goods on
an inventory list. Go through the house with the supervisor to make sure the
list is complete and accurate. When the van arrives at your new home, mark off
the items on the mover’s list as they are unloaded. If you paid for the movers
to unpack boxes and remove packing materials, remember that they will not put
dishes or linens into cupboards.
Moving
day is almost always tiring. But, planning ahead will make the transition as
smooth as possible.
Moving Costs
The
amount you spend depends on your decisions about many things. Here are some to
think about:
- Do you want to hire
professional movers?
- If so, will it be a large
company or a smaller local moving company?
- Will you need to buy
insurance to protect your items in transit?
- If you plan to move
yourself, will you rent a vehicle?
- Will your current auto or
home insurance policy cover your items during the move?
- Will you have to pay utility
companies a fee to connect their services in your new home? Are there
other utility charges (such as a deposit)?
Post-Closing Costs
Changing the Locks
When you
move into your new home you’ll want to change the exterior door locks for
security. After all, you want only the people you choose to have the key
to your new home. You can change the locks yourself or call a locksmith to do
the job.
Cleaning
Both your
old home and your new home should be given a thorough cleaning at moving time.
Whether you’re buying cleaning supplies and doing it yourself, or hiring
someone to clean for you, the costs can really add up. Plan for this expense.
Decorating
You might
want to re-paint, replace some light fixtures, refinish the floor, re-carpet,
or do any number of other decorating tasks. Plan your budget, and consider
postponing some projects for a period of time.
Appliances
If your
offer to purchase didn’t include appliances, and if you don’t have your own,
you will have to buy them when you move into your new home. Some appliances
might have installation charges.
Tools and Equipment
When you
own your own home, you can no longer call the landlord to do repairs. You’ll
need to own some basic hand tools and possibly some gardening and snow clearing
equipment.
Get a fast pre approval with no maditory fields, same day, secure and direct on our Apply Now page on our website. You don't even need to leave your home to know how much you will qualify to buy for.
1-888-755-1126
