Capital Mortgages Inc is an independent brokerage in the Mortgage Centre Canada Network and one of Ontario’s leading real estate mortgage brokerages with offices in Ottawa and the valley. thank you

Talking Mortgages with Your Partner

Your relationship with your partner will experience many exciting milestones: your first kiss, moving in together, getting engaged, having children… But one of the most important steps in your relationship will be buying a home together and getting your first mortgage. A home will likely be the largest joint purchase you ever make, and you need to be sure you are making the best financial decision to fit your specific needs as a couple. Here are a few pointers on how to talk mortgages and finances with your partner:

 

Share your financial goals

The most important thing to remember when discussing your finances with your partner is to be open and honest. Share your financial situations and goals with one another and make sure that you are both on the same page. Are you looking for a home to start a family or are you looking for more of a centrally located condo or even an investment property? This may not be one specific discussion, but an ongoing series of conversations between you and your partner to best ensure a financially secure future together.

 

How to get the conversation started

Financial matters can be sensitive and personal topics to some people so make sure you approach this conversation seriously. Some items to consider and discuss:

  • Your credit ratings
  • Any outstanding debts (e.g. car or student loans that still need to be paid off)
  • Your salaries (if one of you is a significantly higher earner, will you still split the mortgage payments 50/50?)
  • Your savings (what are you both contributing to the down payment?)
  • Other unique obligations, such as supporting family members

 

Visit your mortgage broker together

After discussing your financial goals and plans, visit your mortgage broker. Having a goal in mind will help your mortgage broker ascertain what financing best suits your needs. Capital Mortgages offers step-by-step personal assistance from knowledgeable mortgage brokers and an easy online application process. 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. We may even be able to help you discover other options to realize your goals sooner.  

 

Have a follow-up discussion and make a unified decision

Once you have confirmed your joint goals, met with your Capital Mortgages broker, and have all the information you need, have a follow-up discussion. You and your partner should reassess your joint situation before you make a final decision.

 

As you enter your house-hunt well-informed and prepared, remember it can take months to find your dream home, and financial situations can change in that time. For this reason it’s important to stay in touch with your Capital Mortgages broker to ensure you are always best positioned financially. Remember your pre-approval will only lock in that interest rate for 120 days!

 

Capital Mortgages Inc is an independent brokerage in the Mortgage Centre Canada Network and one of Ontario’s leading real estate mortgage brokerages with offices in Ottawa and the valley.

5 Simple Steps to Getting Your First Mortgage

If this is your first time getting a loan or mortgage, the process can seem overwhelming. To make it simpler, we’ve broken the process down into five easy-and important-steps:

 

Determine a borrowing budget

You’ll want to be realistic about what amount you can borrow based on your monthly expenses (keeping in mind your other expenses and property taxes, homeowner’s insurance, and maintenance costs). Your mortgage broker can help you determine what your monthly mortgage payment would be based on your down payment, interest rates, and length of loan term.

 

Save for a down payment

For a first mortgage, you’ll need to have the down payment ready to supplement your mortgage. In Canada, the minimum down payment is 5% of the purchase price of your home. If your down payment is less than 20% of the purchase price of your home, you are required to purchase mortgage default insurance. This insurance will protect the lender in the case that you default on your loan and is arranged by the lender the mortgage broker places your mortgage with.

 

Mortgage rates

Keep in mind that the lowest interest rate may not always be the best option for your specific needs. Your mortgage broker will explain the differences to you. For more information about rates, read our latest blog post: ‘A Quick Discussion on Interest Rates’.

 

Choose a lender or mortgage broker

An experienced mortgage broker will be able to help you learn about what types of products might best fit your individual needs. The mortgage broker will shop the market for you to make sure you are offered the rate and product you deserve. This is the time to arrange a pre-approval with the mortgage broker.

 

Prepare your documents

Once you’ve completed all of the previous steps you’ll need to gather your required paperwork. Often these documents should be provided even at the pre-approval stage. Lenders will require letters of employment and income, recent paycheck stubs, tax returns, bank account statements, and information on other debts or loans.

 

If you’re a first-time homeowner, the qualified professionals at Capital Mortgages can help you determine the loan that will best fit your needs. We offer as many in-person meetings, phone communications or emails as needed so you feel comfortable with the mortgage process. Contact us today!