When considering a home purchase, keep in mind that there is an ever-changing landscape of home financing. There are constant updates and changes made to the rules around purchasing a home. If you have purchased a house in the past, chances are that guidelines have changed since then.
There are so many forces that regulate and control mortgage approval guidelines in Canada. The Canadian Minister of Finance changes the backdrop of lending rules depending on the state of the country’s overall housing market. The Office of the Superintendent of Financial Institutions (OSFI) regulates and supervises financial institutions in Canada and reports to Parliament through the Minister of Finance. Each one of the 3 big Mortgage Insurance companies - CMHC, Genworth and Canada Guarantee – has their own set of approval guidelines that differ from each other. And finally, each individual Canadian mortgage lender, following the structure set out for them by the bodies above, has different approval policies and guidelines for their various products. And all of the aforementioned institutions update and change their policies and rules frequently! It’s completely understandable if you’re confused. But don’t worry – we’re not.
As the guidelines evolve and shift, our job is to explain everything to you in terms you will understand.
We stay current on all changes that might affect you and take away the burden of dealing with all of the background noise.
There are many reasons to buy a second home. And if you’re on this page, one of the following points probably applies to you:
1. Investing further into the real-estate market via a rental property.
2. Buying another home that suits your needs better while holding onto your current home as an investment.
3. The timing is right for you to own a vacation property.
4. You are in the market to buy something for a family member (how generous of you).
Whatever your reasoning is, and even if it isn’t listed above, we can help you. Buying a second property is a bit different than how you bought your current home. CMHC , Genworth, and Canada Guarantee have tightened their rules on owning multiple properties but that doesn’t mean we can’t get this done for you.
Our experience in this area can guide you down a path that ends with more real estate to add to your portfolio. Call us today so we can fill you in on everything you need to know about buying a second home.
If you feel like now is the time to enter the real estate market, you really don’t need look any further for help.
Talking to one of our mortgage specialists should be the very first thing that you do. Why? Because pre-qualifying your purchase will prepare you and give you direction as well as answer the following questions you probably have:
1. How much can I afford?
2. How big of a mortgage can I get approved for?
3. What do I need to get started?
4. How is my credit in the eyes of a mortgage lender?
5. What is the home-buying process like?
At Oceanvale, we know that the home-buying process can be very intimidating. However, in reality it is very simple. We can explain the entire process to you, tell you what to expect, handle every measure of financing, recommend a knowledgeable and trustworthy realtor if needed, and be there with you every step of the way to help guide you into your new home! We'll even give you great tips - like how to save thousands of dollars on your property transfer tax because it's your first time purchasing a home.
A 2015 CAAMP report notes that 55% of first-time home buyers in Canada used a mortgage broker instead of a major bank. That percentage is up from 48% in 2012 and will continue to increase in the modern age. Over half of the country is using mortgage brokers now because of the access we offer to an abundance of products at extremely competitive rates. Once you choose to use us, we are confident you will never speak to a bank about mortgages again.
Call us today to get the conversation started. We are looking forward to helping you get into the market!