Home Buying Frequently Asked Questions
Buying your first home is a very exciting time. To avoid adding unwanted stress to this process read the following question and answer page. This valuable information will make your first home purchase a pleasurable experience.
Do you already own a home or have owned one in the past? The information on this page will benefit you as well.
What is required to obtain a first mortgage?
In most cases:
- Full-time employment / proof of income
- Good credit rating
- Verifiable down payment
- Filling out a Pre-approval Application
What can I use for a down payment?
In most cases:
- Registered Retirement Savings Plan
RRSP's may be used as a down payment up to a maximum amount of 25,000 and is not subject to income tax if repaid within a specific time period.
- Gift from immediate family
- Accumulated savings
- Sale of existing home
- Sweat equity
What costs are involved in obtaining a mortgage?
Costs generally incurred are:
- Legal (Costs generally range between $600 - $1000)
- Standard CMHC application fees may apply
- Standard CMHC premiums may apply on high loan-to-value loans.
- Home Inspection
How long does it take to complete a mortgage transaction?
It varies from province to province but generally once the approval is sent to the client the transaction can be completed within 1 to 2 weeks.
Can I get pre-approved before I find the home I want to purchase?
Yes. Our lenders offer pre-approvals from 60 days to 120 days. When it comes to new construction many lenders will extend that preapproval time to fit the construction schedule. This will allow you to hold a great interest rate while you shop for or build a new home.
How much can I qualify for?
Qualifying guidelines vary depending on the lenders criteria and products available. To find out exactly what you can qualify for, please submit your application. This process may only take 20 minutes. The are no fees or obligation and your information is secure.
Who is CMHC? What is their purpose?
is Canada Mortgage and Housing Corporation. They insure high ratio (low equity) mortgages to provide a safe investment for the lenders who provide the funds for your mortgage. There are other alternatives in Canada to CMHC. Our agents can best direct you to the insurer that suits your needs.
Who does Alberta Equity work for?
Why use a mortgage broker?
Mortgage brokers work for you the client, not the lenders. Our only job is to find and secure the best mortgage rate and term possible for the consumer. Learn More
How can a mortgage broker get a better rate than my own bank?
The mortgage lenders that we use do not have local branches in each city or town, they have no large overhead and are in the business of lending money for mortgages only. This, combined with their large volumes, allows them to discount the rates far better than your own bank can provide.
What if my credit or income does not meet conventional lending criteria?
Many lenders that we deal with offer special consideration for clients with bruised credit or lack of income verification. Please talk to one of our agents for further details.
Alberta Equity has helped over 50,000 people find and qualify for the best mortgages in Canada for over ten years. We do all of the heavy lifting and ensure that you get the best mortgage rates and product features available. Apply online for a free, no obligation consultation or alternatively, view our products and services.