Mortgage Centre


Tracy Irwin

- Mortgage Broker

Mortgage Strategies - First Time Home Buyer

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mortgage Strategies

First Time Home Buyers

First Time Home Buyer Mortgages -

Self-employment mortgagesFirst-time Home Buyer?  What You Need to Know - view video

Here’s a comprehensive look at the “in’s and out’s” of first-time home buying.  From pre-qualifying and mortgage types to pre-payment privileges and document requirements, your questions are answered in this all-inclusive segment.  You will have the confidence to know what questions to ask and the assurance that you are getting a mortgage that’s right for you!

Four Questions Home Mortgages Video - 4 Questions to Ask Your Mortgage Broker - view video

NEW!! If you’re in the market for a new home, chances are you’re also shopping around for a mortgage. It’s an intimidating process; after all, it’s probably the biggest financial commitment you’ll ever make. A certified mortgage broker can help you navigate the journey by “giving you unbiased advice to better understand mortgage products and how they affect you,” says Tracy Irwin, a Toronto-based mortgage broker. View this video and ask the following four questions to get the most out of your first meeting.

How exciting!  You are ready to purchase your first home.  Not only will you have a place to call your own, you will have an excellent financial investment that is tax free!

How much can you afford?
Click here to calculate how much of your new home mortgage loan you can
pre-qualify for.

What you should know
There are a variety of mortgage loans available; each one designed to meet specific client requirements.  We will help you determine what mortgage loan best suits your unique situation.

What to keep in mind

If you are a salaried employee:
  • how long have you been with your current employer and in this industry?
  • are you on employment probation?
If you are a commissioned sales person:
  • what is the two year average of your commission income?
  • how long have you been with your current employer and in this industry? 
  • your statement of business activities will be reviewed for expenses that relate to operating a business and can be added back to your taxable income to increase your income qualification for financing

If you are self-employed:

  • Click here to find the solution to “Banks don’t trust the self-employed!”
  • do you have a minimum of three years industry experience in your current business?

What type of down payment will you have?

Home Buyers’ Plan (HBP)
You and your spouse or common-law partner can both withdraw up to $20,000 from your RRSP (Registered Retirement Savings Plan) to purchase your first home.
Click here for a comprehensive copy of the Home Buyers’ Plan.

If your down payment is a gift, the giver must be an immediate relative, e.g. parent, grandparent, sibling.

Own Resources
A 3 month bank statement, GIC (Guaranteed Investment Certificate) or investment portfolio statement will be required to confirm that the down payment will be generated by your own resources.  Examples:  savings, RRSPs, stocks, securities, CSBs (Canada Savings Bonds),  GICs

Land Transfer Tax Rebate
If you are a first-time home buyer, you are eligible for a refund up to $2,000 on the purchase of your resale home.

What is your credit score?

Your credit or BEACON score is a very important factor in determining what type of rating you will qualify for when applying for your mortgage loan. 
Click here to find out “What does your credit score mean?”

What type of mortgage loan do you want?

The 2 most popular mortgage options are – fixed rate or variable rate.  An interest only loan is available - but is primarily used for investment properties and commercial lending.

A Fixed Rate mortgage is a mortgage loan that carries a guaranteed fixed interest rate and payments throughout the life of the loan. 

A Variable Rate mortgage loan, also referred to as an Adjustable Rate, is a mortgage where the interest rate is adjusted, generally monthly, based on fluctuations in the prime lending rate. 

Making the decision on whether to choose a fixed rate mortgage or a variable rate mortgage depends on your tolerance to changes in your payment amount throughout the term of your mortgage.  

The fixed rate option provides stability, but has historically cost more in interest than the variable rate option.  The fixed rate mortgage is based on changes in the bond market, while the variable rate mortgage fluctuates along with the prime lending rate.

What is your loan to value?

Click here to find out if you should apply for a conventional or high ratio mortgage.   Some lenders have introduced a 100% mortgage loan, while others will help finance your closing costs. 

Amortization Period

Several new amortization periods have been introduced to allow first time home buyers the opportunity to realize their dream of home ownership sooner.  The traditional amortization period is 25 years, however, 30, 35 and 40 year amortization periods are available.  There is an additional insurance premium fee for these options and this fee will be included in your mortgage amount. 

How much is needed for closing costs?

Most lenders generally expect that you have 1.5% of the purchase price of your home in liquid assets to cover your closing costs.  e.g. savings, GIC. RSP, Bonds

Click here to review the costs you can expect to pay on closing. 

Call for personalized consultation
To apply or for more information on purchasing your first home, please contact Tracy Irwin at toll-free number 1-866-797-7616 or contact her online at Ask for your complimentary copy of Home Buying Step by Step – a consumer guide and workbook or Mortgage Wise – a guide for home buyers.

Financing your mortgage loan needs in Stoney Creek, Burlington, Waterdown, Oakville, Hamilton, Ancaster and Dundas, Ontario.

R.D.M. Financial Consultants Ltd. Brokerage Licence # 10716 Each Mortgage Centre office is independently owned and operated