First Time Buyer Mortgage in Montreal | Orbis Group
Prêt hypothécaire pour premier acheteur à Montréal

The value of good advice for first time buyers

 

Buying your first home can be a daunting experience under normal circumstances. Now with market conditions favouring sellers and logistical complications with COVID19, the process of finding the right home can seem all the more complex. Thankfully, proper planning and solid advice can help ensure your home buying experience is a positive one. How can we help? From budget creation and preapprovals to lifestyle concerns and recurring home ownership costs, mortgage brokers are experts in preparing you to become a homeowner. The best part? Our client services come at no cost.

NAVIGATING THE HOT MARKET

The Quebec housing market has continued to set records month after month over the last year, and January was no exception. In fact, buyers did not let COVID-19 or the low supply of homes for sale prevent them from flooding the housing market in January, which saw a record number of home sales at prices higher than in previous years. A market this hot can make things more complicated for buyers, who face supply issues, bidding wars, and higher prices. These conditions mean it’s more important than ever before to enter into the market as a prepared buyer; this means knowing what you can afford, and being able to demonstrate buying power.

DETERMINING AFFORDABILITY

The first step in planning to buy a home should always be to understand the financial implications of the purchase. It’s essential to understand what you can safely afford. Speaking to a mortgage broker is key in this process, as they can help you formulate your budget. Being able to afford a home means a lot more than just having enough for the down payment and monthly mortgage payments. A mortgage broker can take your lifestyle into account to ensure your home purchase won’t leave you unable to pursue your passions.

GETTING PREAPPROVED

Another benefit of consulting with a mortgage broker ahead of time is to obtain a mortgage preapproval. A mortgage pre-approval occurs when a lender provides a buyer with a written statement confirming they qualify for a mortgage loan of a specific amount based on their current income and credit history. A pre-approval usually specifies a term, interest rate and mortgage amount. In order to obtain preapproval, you will be required to provide some basic information about your financial picture, including proof of employment and income, as well as previous years’ tax summaries. Your mortgage broker will then use a specialized process to determine how large of a mortgage you are eligible for, as well as details about the rate and term. That said, buyers should be aware that when a lender qualifies you they don’t take monthly expenses or your lifestyle into account. That’s why when rates are low, like now, sometimes people qualify for larger mortgages than they can realistically afford. That’s why working with a licensed mortgage professional is the best way to help buyers decide not just what type of mortgage is right for their individual situation, but also to determine how much house they can afford considering their lifestyle and priorities; it’s never just about the rate.

TAKING ADVANTAGE OF CURRENT RATES

Even though it may be a tumultuous time to be a buyer in this market, the good news is that mortgage rates are currently at historic lows. This means potentially thousands in savings over the course of your mortgage term. If you’re planning to purchase a home in the coming weeks, obtaining preapproval can mean locking in a great rate while you shop for a home.

GETTING A MORTGAGE SAFELY

Orbis brokers will continue to accommodate clients by offering our complete brokerage service virtually in order to ensure everyone’s safety during the COVID-19 pandemic. If you need a mortgage, we’re ready to help with access to the best rates and products with contactless, comprehensive service.

No matter the type of property you’re searching for, our experts can guide you every step of the way. Call us today to get started.

 



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