1. First-Time
Home Buyers
Michael Williams
Mortgage Agent.
FSCO Lic.# M08002961
WWW.LENDERSCHOICEMORTGAGE.CA
© 2011 Michael Williams
www.lenderschoicemortgage.ca

2. Five Things Every First-Time
Home Buyer Needs to Know.
Morcan Financial Inc.
1225 Kennedy Rd. • Suite 2000
Toronto, Ontario
Phone: 647-933-4228 • Fax: 1866-589-1391
© 2011 Michael Williams
www.lenderschoicemortgage.ca

3. How much do you qualify for?
There are strict guidelines in mortgage lending NOTES
regarding how much of your income can be
used to make mortgage payments, especially if
you’re buying a home with a smaller down
payment. No more than 32% of your gross
(before taxes) income can be used to cover your
mortgage payment and property taxes plus a set
amount for heat expense. Another 8% of your
gross income can be used for other debts (loan
payments, credit card payments, etc.) for a total
of 40% of your income for your mortgage,
property taxes, heat and other payments.
Example:
Your gross (before taxes) annual income is
$50,000.
32% of $50,000 = $16,000 / 12
= $1,333 per month
$1,333 is the maximum amount that can be used
for a mortgage payment, property taxes, and
heat.
8% of $50,000 = $4,000 / 12 = $333 per month
$333 is the maximum amount that can be used
for any other monthly payments (loans, credit
card payments, lines of credit, etc.). There are
exceptions , talk to you mortgage agent.
© 2011 Michael Williams
www.lenderschoicemortgage.ca

4. Down Payment
NOTES
Unless you are purchasing a home with no down
payment under a specific “no down payment”
mortgage program, you will be required to
provide proof that your down payment money is
not borrowed.
Examples:
If your down payment is from savings, you will
be required to provide three months history on
the bank account the savings are in.
If your bank account is from an RRSP or
investments, a statement on the RRSP or
investment account.
If your down payment is a gift from a family
member, you must provide a copy of a “gift
letter” together with confirmation that the gift
money has been deposited into your own bank
account.
If your down payment is coming from the sale
of your current home, a copy of the sale contract
to confirm the sale price and a copy of a recent
mortgage statement to confirm how much is
currently owing. If your sale has already
completed, a copy of the “Statement of
Adjustments” from the lawyer who handled the
sale.
© 2011 Michael Williams
www.lenderschoicemortgage.ca

5. Income
NOTES
You will be required to
provide your mortgage agent
with written confirmation of
your employment and income. Your mortgage agent
will let you know the exact documents required for
your situation, but generally if you are not self-
employed, the following will be required:
- A letter from your employer, on company
letterhead, signed and with contact info, confirming
your position, time on the job, hours, and salary.
- A copy of a recent paystub, or most recent T4.
If you are self-employed, your mortgage agent will let
you know what documents to provide.
© 2011 Michael Williams
www.lenderschoicemortgage.ca

6. Credit Report NOTES
Your credit history and credit “score” are just as
important as your income, employment and
down payment when it comes to getting
approved for a mortgage. The companies you
have credit with report on a regular basis to the
“credit bureau,” Equifax. It’s important to
always be aware of the information contained in
your credit report. Your mortgage agent will let
you know how to obtain a copy of your own
credit report, and how to correct any inaccurate
information.
Credit reporting is all about making your
payments on time. Many people will skip making
a small minimum payment because they know
they’ll be paying off the entire balance at the end
of the month. But every time you miss a
payment due date, it’s recorded on your credit
report. You may have paid your balance off in
full, but the fact is you made that payment late. A
history of late payments can cause serious
damage to your overall credit rating, which will
affect whether or not you can be approved for a
mortgage. If you have damaged your credit, your
mortgage agent will have suggestions to help you
get your credit back on track. And if you have
no credit history at all, your mortgage agent can
suggest ways to establish credit so you can apply
for a mortgage in the future.
© 2011 Michael Williams
www.lenderschoicemortgage.ca

7. What type of mortgage is
right for you?
3
If you’ve mentioned to anyone that you’re NOTES
buying a home or applying for a mortgage,
you’ve probably gotten lots of opinions on the
type of mortgage you should have. With so
many mortgage options available today, how do
you know which one is right for you? Everyone
has an opinion on mortgages and interest rates,
but to be sure you’re getting expert advice, you
need someone who specializes in mortgages.
When you visit a bank for a mortgage, the
person you meet with knows only the products
offered by that particular bank. But a mortgage
agent is familiar with all the options available.
Why limit your options to what’s offered by just
one bank? Your mortgage agent will help you by
explaining the different types of lenders and
mortgage products, determining what is most
important to you, and finding the lender with the
mortgage that is just right for you, and best
suited to your unique situation.
© 2011 Michael Williams
www.lenderschoicemortgage.ca

8. Profile
Michael Williams is a mortgage professional with Morcan
Financial Inc. With eight years of experience, Michael has
arranged financing for hundreds of clients in the Toronto and
surrounding areas. He specializes in working with first-time
homebuyers, and takes the time to help his clients through the
mortgage process, step-by-step.
Morcan Financial Inc. has been in business since 1998.
Morcan agents pride themselves in their ability to assess a
client’s entire portfolio and determine the right mortgage
products for the client’s needs. With access to a multitude of
mortgage products from a wide variety of mortgage lenders
across Canada, we will find the mortgage that is best for you.
© 2011 Michael Williams
www.lenderschoicemortgage.ca