Message From Author

Paramjit S. Girn

Welcome! Besides preparing quality content, we help Ontario residents leverage their time and banks money efficiently to make them mortgage free quicker. Having said that, allow me to invite you to meet our licensed mortgage expert for an eye opening, no obligation mortgage strategy session. Everyone who attends it, loves it. We are almost certain you will too.

From the table below, select the scenario that best describes your situation

YOU CAN USE THE FOLLOWING INFORMATION TO GUIDE YOU:

Credit
SCORE
Verifiable
INCOME
Down
PAYMENT
Meet With an Expert
SEND YOUR AVAILABILITY
More Than or
Equal to 680
Yes 5% Or More

Book Me In
Here’s My Availability

Not Sure Yes 5% Or More

Am Confused About My Credit
Here’s My Availability…

More Than 680
Equal to 680
Yes 5% Or More

My Down Payment Concerns Me
Here’s My Availability…

More Than or
Equal to 680
Not Sure Not Sure

I Am Confused, Like to Meet
Here’s My Availability…

Not Sure Not Sure Not Sure

I Need an Experts Opinion
Here’s My Availability…

First Time Home Buyers

Mortgage Planning Triad

For first time home buyers, a decision on a mortgage is among the most important decisions they will ever make in their life! If you are reading this you have decided to move forward, but very likely have many questions about your eligibility, the current market and what to expect. Don’t worry – Paramjit Mortgage Delivery Guy is here to help! I love working with first time home buyers and gain great satisfaction in seeing how my knowledge enlightens and empowers them. If you are in search of a promising future you have come to the right place. My commitment is to make this process as easy as possible for you.

To begin with it’s important to understand a few basic principles behind how Canadian mortgage services work, and how your strengths and weaknesses affect your eligibility and prospects. For all first time home buyers a bank typically assess the ratio between said income and debts, and approves a mortgage accordingly.


Your CID profile is what determines your prospects, interest rate and general level of attractiveness to lenders. CID stands for credit, income and down payment:

CID Profile

Most people have no idea what their CID profile is yet they go ahead anyway, putting their trust in big banks that may not have their best interests at heart. The only defense against people who may take advantage of you is self-education. Knowing your CID profile is part of this. It gives you agency and that is no small thing for first time home buyers. Agency means power, and with power comes more choices that affect your future!

This profile is made up of the following three factors:

  1. Credit
  2. Income
  3. Down Payment

1. Your credit score

Your credit rating is made up of more factors that you may realize, and credit card usage is only one of them. Reports on your account can also sometimes be inaccurate and this can really hurt a rating for first time home buyers. If this is the case it will make you a less desirable candidate and will cost you more, so getting help from a knowledgeable professional is critical.

Credit Score aka Beacon Score:

A credit score of more than 680 is good but again, best you hire a mortgage expert to help iron out any inaccuracies that might be in your report. From the table above, select “NOT SURE” if any of the following situations apply to you:

  1. Do not have a credit rating because you are new to the country, have been discharged from a proposal or have previously gone bankrupt
  2. Your credit score is less than 680
  3. You have never used a credit card, preferring to rely on cash purchases
  4. You have a history of late payments in the last three years
  5. Unpaid bills have been forwarded to collection agencies in the last three years
  6. You’ve never checked your rating and simply do not know what it is

If you have any questions about your credit score, contact us we can help!


2. Sufficient Verifiable Income:

For first time home buyers, sufficient verifiable income is comprised of gross income available for payment of all debts as per lender requirements. Qualifying income cannot be income derived during probationary periods and must accompany proof of employment such as letters, recent pay stubs, notice of assessments (NOA) or TI Generals. If you are self-employed be prepared to provide a lot more documents including and not limiting to Business financials, bank deposit statements etc.

Keep in mind income requirements depends upon the mortgage product, rate and lender. Don’t hesitate to contact us for more information!

On the table above, select “NOT SURE” if any of the following situations applies to you:
  1. Much of your income is cash (for example commission or tips)
  2. You are Self Employed business owner (BFS)
  3. You are presently on employment insurance (EI), maternity leave etc
  4. Your total income before taxes is less than $50K a year
  5. Unpaid bills have been forwarded to collection agencies in the last three years
  6. You’ve never checked your rating and simply do not know what it is
If you still have questions about your income status, give us a call!

Down payment

Basically, the higher your down payment, the lower your principle mortgage which leads to lower monthly payments. Higher down payment alone doesn’t cut it these days. The good news is you can find out right here what your profile is like by using the table above. By following this quick and easy process you will have changed the course of your future for the better! That sounds like something that is well worth a few minutes of your time. Currently, the minimum down payment required is only 5%, but at that rate you will also be on the hook for insurance premiums. If you are able to pay 20% or more you will not pay these premiums. First time home buyers should also note they must have a bit more than just bare minimum down payment for those rainy days. No one talks about it but it’s necessary.

On the table above, select “NOT SURE” if any of the following situations apply to you:
  1. You are not able to pay 5% down payment
  2. A family member will be contributing part of your down payment (gifted down payment)
  3. You have had money in your account for less than three months
If you have questions about your down payment, as always, connect with us.


Mortgage Tips for First Time Home Buyers

One of the most common mistakes first time home buyers make is to fixate on home mortgage rates, which are nowhere near as important as is commonly thought. This misconception can be blamed on marketing campaigns created by banks and other financial institutions. Looking past the interest rate hype to the bigger picture is critical in maximizing prospects for all first time home buyers.

For example, a slight increase in mortgage rate has very little impact on your monthly payment – the difference in some cases of only a few dollars a month! You need to consider your entire CID profile and the proposed terms in your mortgage loan before making a decision. Additionally, interest rates can be fixed or variable. Currently (January 2017), 5 years fixed first mortgage rates are fluctuating between 2.54% and 2.89% depending on the type of mortgage, lender involved and most importantly the terms and conditions associated with these rates.

To find out more about specialty products that may benefit you, connect with us to book a Strategy Session today! We are committed to a quality future for all first home buyers.

Still got questions or concerns about your mortgage and real estate needs? Why not discuss your scenario with an Ontario licensed mortgage expert and get customized solutions that works for you? Allow us to invite you to schedule your mortgage strategy session with one of our licensed experts. Those who attended finds it very informative and eye opening. We are almost certain you will like it. Simply click the link below and send us your availability and we will confirm your meeting time and date.