You've worked hard to save a down payment. You've got your dream home in mind. But how do you get from that moment of being ready to owning your first home? That was the situation our client Tom found himself in.
Tom had saved diligently throughout his career and put aside 15% of the purchase price for a condo unit. He found the property he wanted to buy and negotiated the price. But he wasn't sure how to finalize his financing, which is how he ended up contacting the Auxilium Team.
Think of a mortgage broker as your navigation system. Our staff find the best course, as well as any alternate routes to your goal. You're in the driver's seat, and we work together to get you from where you are to where you want to be on your home ownership journey.
Tom chose to work with a broker rather than directly with a bank for the personalized service he would receive. He was even happier with his choice when we told him we could look into options with his existing financial institution – and get him a better rate through the broker channel.
One of the early conversations we had with Tom was about his down payment. While 15% is a significant accomplishment, that amount would still leave him paying fees to CMHC. (Any transaction with less than 20% down payment is considered high-ratio and subject to insurance costs.) He was able to make up the balance of a further 5% through a gift from his parents, leaving him with a conventional mortgage.
Now that Tom wasn't going to be paying the insurance fees on his deal, we still had one more option ahead of us: an insurable or uninsurable mortgage. The main difference for you as the purchaser is the amortization, or the total length of time over which you're borrowing the money. Anything 25 years and under is considered insurable by the lender. However, if you want a 30-year amortization, your file is uninsurable. Lenders tend to have lower rates for insurable deals, and this is ultimately the choice Tom made for his home purchase.
Throughout the mortgage process, Tom was the decision-maker. However, he writes that the Auxilium Team "helped make [his] first home buying experience a much more comfortable experience."