Money Matters

You’re in the Driver’s Seat When it Comes to Mortgages

You're in the Driver's Seat When it Comes to Mortgages

By Kam Brar, Auxilium Mortgage Corporation

“I’ve helped many clients achieve goals
that they thought were impossible.”

—Kam Brar

You’ve worked hard to save a down payment. You’ve got your dream home in mind. But how do you get from that moment of being ready to actually owning your first home? That was the situation our client, Tom, found himself in.

Tom had saved diligently throughout his career and put aside 15% of the purchase price for a condo unit. He found the property he wanted to buy and negotiated the price. But he wasn’t sure how to finalize his financing, which is how he ended up contacting the Auxilium Team.

Think of a mortgage broker as your navigation system on your home ownership journey. Our staff finds the best course and alternate routes to your goal. You’re in the driver’s seat. Together, we get you from where you are to where you want to be.

Tom chose to work with a broker for the personalized service it offers rather than dealing directly with a bank. He was even happier when he found out that, as a broker, we could look into options with his existing bank to get him a better rate.

While Tom’s down payment of 15% is a significant accomplishment, that amount would still leave him paying fees to CMHC. That’s because any transaction with less than 20% down payment is considered high-ratio and subject to insurance costs. Fortunately, Tom was able to make up the 5% shortfall through a gift from his parents, leaving him with a conventional mortgage.

We still had one more option ahead of us: is it an insurable or uninsurable mortgage? The main difference for you as the purchaser is the ‘amortization’ or the total length of time over which you’re borrowing the money. Anything 25 years and under is considered insurable by the lender. However, if you want a 30-year amortization, your file is uninsurable. Lenders have lower rates for insurable deals, so ultimately, this is the
choice Tom made for his home purchase.

Throughout the mortgage process, Tom was the decision-maker. However, he writes that the Auxilium Team “helped make [his] first home buying experience a more comfortable experience.”

Call or visit us today for more information. Our GoWestShore Portal listing includes all of our contact information.

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