Homebuying Step by Step: Your Guide to Buying a Home in Canada
Conventional and high-ratio mortgages: • Conventional mortgage —A loan that is equal to or less than 80% of the lending value of a home. This requires a down payment of at least 20%. • High-ratio mortgage —A loan that is over 80% of the lending value of a home. This means the down payment is less than 20% and will likely require mortgage loan insurance. Pre-payment options: The ability to make extra payments, increase your payments or pay off your mortgage early without incurring a penalty. Portability: An option that lets you transfer or switch your mortgage to another home with little or no penalty when you sell your existing home. Mortgage loan insurance can also be transferred to the new home.
Don’t leave home without them! Bring the following information when you meet with your lender or mortgage broker. This will help them determine whether you qualify for a mortgage.
Use the Personal and financial information checklist in Step 3 of the workbook.
proof of income for your mortgage application
contact information for your employer and your employment history
proof of down payment (amount and source)
proof of address and your address history
proof of savings and investments
details of current debts and other financial obligations
government-issued photo IDs with your current address
Know your credit score Your credit score is a snapshot of your financial health at a specific point in time. It shows how consistently you pay off your bills and debts. A good credit score is incredibly valuable. Lenders and brokers will look at your credit history when deciding whether or not to approve you for a mortgage. Before you apply, it’s a good idea to get a copy of your credit report to make sure there aren’t any mistakes or surprises.
Learn more about credit reports and credit scores and get tips on maintaining a good credit history at cmhc.ca/creditreport .
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