first time homebuyers

Providing Solutions for First Time Home Buyer Mortgages

If you are a buying home for the first time than navigating your first-time homebuyer’s mortgage can seem like quite the challenge. You’re treading new waters and there are a lot of financial decisions that you will have to consider and plan for. Sometimes, it can be challenging to find a flexible mortgage lender to help you out with the first-time home buyer mortgage requirements. Maybe your credit score is not perfect. Perhaps the banks believe that you are a risk due to a lack of equity, assets, or credit history. However, there is hope. Many first-time homebuyers are not aware that they actually have numerous options to consider when it comes to mortgage lenders. At Kal-Mor, we’re here to help you with that. All you have to do is give us a call and we’ll help you turn your dream of becoming a homeowner into a reality!

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First time home buyers: Mortgages 101

Let’s go back to the basics. Following are some things you must consider as a first-time homebuyer before you look at your mortgage options.

Firstly, What Is A Mortgage?

To put it simply, a mortgage is a loan that can be used to purchase property in Canada. In order to pay it off, you will have to make regular payments to the lender. This payment consists of two parts:

  1. The principal loan amount
  2. The interest

The mortgage loan is going to start out as large numbers; however, as you continue to make the payments, this amount is going to decrease over the mortgage term. At Kal-Mor, we offer lenient pay off options as we understand and consider all your unique needs and requirements.

What’s the Difference between a Mortgage and a Down Payment

Simply put, the down payment is the lump sum of cash that goes towards the principal cost of your purchase. Down payments are critical as they serve a dual purpose for those willing to purchase a home. First, the down payment will be deducted from the overall price of the property, which lowers the amount of the loan that you need to borrow. Second, the down payments can also be used to strengthen your application. Typically, the bigger the down payment, the more favourable rates and terms you’re likely to receive.

Fixed Term vs. Variable Term Mortgage

The next big decision you will have to make is between choosing a fixed term and a variable term mortgage. Both have their unique benefits, but when determining which is the best option to choose, it really comes down to the individual needs and requirements of each borrower.
Our experienced team at Kal-Mor will clearly present you with all of your options so that you can make an informed decision that aligns well with your financial goals. We’ll be with you every step of the way and do all of the heavy lifting for you to ensure that you get the right mortgage that suits your future goals. Give us a call today at 250-549-3250 to go over your options and get started on buying your first home.