Mortgages for first-time home buyers

By Cheryl Mills
Mobile Mortgage Specialist, RBC

Before you get the keys to your new home, there are few important things to know.

Are you a first-time home buyer?  Arranging your RBC Royal Bank mortgage is easier than you think!

As a first-time home buyer, you probably have many questions.  That’s why RBC, Royal Bank, offers step-by-step personal assistance.  We’ll be by your side each step of the way, from helping you understand your options and what to expect, to mortgage pre-approval, and all the way through finalizing your mortgage and the purchase of your home.

So why is getting pre-approved is so important? Well, one of the first steps in buying your home is obtaining a pre-approved mortgage.  With a pre-approved mortgage you will:

– Know how much you can afford and what your payments will be;

– Lock in your interest rate; and

– Demonstrate to vendors and their agents that you are a serious buyer.

With that noted, you’ll also need to know your mortgage down payment options: the minimum down payment is 5%, which can come from gifted monies from family members, from money you have saved or from your Registered Retirement Savings Plan (RRSP).  RBC has a borrowed down payment program where you can borrow the 5% down payment if you do not have all of it available to you.

What your Lender will be looking for to get you pre-approved are the following:

– Obtaining a mortgage application which will provide the lender of your personal and financial information such as birthdates, SIN numbers, address, employer information and income.

– Your permission to pull your credit bureau which tells the lender what your liabilities are and minimum payments.  This allows the banks to determine how much you qualify for, for a mortgage.

– Two forms of income verification, which can either be a letter of employment or a most recent T4 along with a current paystub.

– We will also require your down payment verification.  We will need to verify all down payments, so if gifted money we will have you and your donor complete a gift letter.  If from your accounts, we require a 90-day history and if from an RRSP account, we require a quarterly statement.

Once we have received all of the above information we can proceed to have you pre-approved in less than 24 hours.  Then you can start shopping for your new home!

Please feel free to give me a call at any time to answer any questions or to set up an appointment.  I am a mobile mortgage specialist and therefore can meet you on your time, at your home or at any RBC branch.

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