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.

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!

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