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Learn more about the home buying process

Becoming An Owner

Educating yourself about the home buying process is critical – and we want to make it as easy and enjoyable as possible.

There are so many things to consider that it’s best to take it step by step, and that’s exactly how this section is structured. Start from the beginning, or jump in wherever you have specific questions.

 

  • Buying a new home can rank among the most exciting and rewarding events in your life. You enter a new world filled with financial security, lifestyle-enhancing opportunities, and much more.
    • You’ll build equity and use it to your advantage
    • You’ll be investing in the future of your family
    • You’ll gain peace of mind with a stable residence
    • You’ll be free to personalize the space in and around your home
    • You’ll create lasting bonds with neighbours
    • You’ll take pride in owning your own home
    Homeshopping Tips:

    Before you make the final decision to purchase your dream home, make sure you’ve considered all your options and the factors that are important to you in a new home and a new community. Your dream home should make your dreams come true.
  • From a financial standpoint, there is no more significant aspect of home ownership than the building of equity. Simply put, equity can be regarded as the portion of your house that you own as a dollar amount, when you subtract the current value of your home from the amount owing on your mortgage. You gain equity with each mortgage payment and with the appreciation of your property.

    Ask your Fieldgate Homes Sales Representative for the contact information of their approved mortgage representative, who can show you how to increase your equity over time.
  • The status of your credit is a key factor in determining the interest rate on your mortgage, as well as the amount of money you can borrow. A mortgage lender will look at your credit score to determine whether or not you are a worthy financial investment by looking at your credit score. Your credit score is a number between 300 and 900 that rates your credit history, based on factors like credit card payments, collections, bankruptcy, outstanding debts, and the types of credit you use.

    The higher your credit score, the lower your risk and the more attractive you will be to a mortgage lender. However, if you discover you have a low credit score, it can be raised over time by making wise credit decisions, like simply making the minimum payment on your credit cards on a regular basis.
  • When seeking a mortgage, there are many options available to you.

    Fixed Rate

    While a fixed-rate mortgage maintains a single rate over a specified period, there are many options within a fixed-rate plan. For example, you can pay weekly, biweekly, bimonthly or monthly, and you can select the term, with durations usually available from 1 to 10 years. There are many more options that can help you pay down your mortgage quicker and save you lots of money over the life of the loan.

    Variable Rate

    Your payment amounts will fluctuate under a variable rate mortgage because the mortgage rate is connected to the fluctuations of the prime lending rate. Your mortgage rate will decrease if the prime rate goes down, and conversely, they will both simultaneously increase. You can pay weekly, biweekly, bimonthly or monthly. Five (5) year terms are available and the mortgage can be closed or open for prepayment without penalty at any time.

    Convertible

    Usually available for a short, 6 month term, during which your interest rate will be lower due to the short term. At any time during the term, you can convert your mortgage to a longer term closed mortgage at the rate associated with the longer term you choose.

    First-time buyers should be aware of the advantages available to them, such as using funds from your RRSP towards your down payment.

    Once you’ve decided on the type of mortgage that’s right for you, you can obtain a mortgage pre-approval. This will give you a better idea of how much you can afford to carry on your mortgage and can lock you in at a specified interest rate, protecting you against rising rates.


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