Home Mortgages – When buying or refinancing a home, getting the right mortgage is so important to the long-term value of your important investment. Shaving a point (or 2 or 3 or 4…) adds up, and every payment you make will remind you of the good decision.
But we’re about more than just great rates – Sherwood Mortgage Group is here to provide great service, easy pre-approvals and all manner of home mortgage purchase advice.
Whether you’re buying your first home, moving across town, trading up, downsizing, or just renewing or refinancing, we won’t just find you a home mortgage… we’ll find you the right home mortgage.
And have a look at our powerful mortgage calculator to see how our great mortgage rates can help you save!
Pre-Approval Before you even consider buying your first home, the most important step you can take is to understand what you can afford. Lenders will pre-approve borrowers up to a maximum amount based on their assessment of your ability pay back the mortgage. Knowing how much lenders are prepared to loan you (and at what rate) allows you to shop with confidence for a property within the pre-approved range (plus the amount of the funds you have set aside for a down payment).
A Sherwood Mortgage Group representative can help you get pre-approvals from multiple lenders. Pre-approval does not oblige you to borrow from the pre-approving lender. We are free to shop the market for the best rate available once a firm deal is in hand.
The pre-approval process also allows us to understand whether there are any issues that can make financing a purchase more challenging, and to find appropriate solutions before a purchase is made.
Deposit Before shopping for a home, first time buyers should understand that they will need to have an amount of cash available for a deposit to be submitted with an offer to purchase. The deposit is only cashed in the event of an actual sale, but is intended to demonstrate to the person selling the property that your intent is serious. Your real estate agent can advise you on an appropriate value to offer on deposit and the circumstances under which you could forfeit your deposit.
Inspection Though not typically a significant expense (usually under $500), a home inspection is a strongly recommended step in any home purchase. Your real estate agent should ensure that any offer to purchase you submit is contingent upon an inspection of the property by a qualified professional. A qualified home inspector can assess the condition of the home and provide you with a report detailing areas that may require repair or attention. It is important to know these facts, in order to understand whether the property really is affordable.
Down Payment A down payment is the amount of cash a buyer will provide toward purchase. Added together with the amount provided by the lender, the house whole purchase price is met. A down payment for first time buyers in Ontario must be a minimum of 5% of the purchase price (e.g. $250,000 x 5% = $12,500).
Closing Costs First time buyers should also understand what other costs they will incur when buying a home as these can be quite significant. These may include:
An educated estimate of these costs will help you understand what funds you will actually need to complete your purchase. Either deduct the amount from your cash available for down payment, or plan to put aside the amount prior to the closing date (the date on which you take possession of the property).
Beyond Possession Purchasing a home is often just the beginning of the costs you should anticipate. Beyond mortgage payments, there are property taxes and usually lots of maintenance costs (unless you are part of a condominium corporation, in which case there are maintenance fees). And it is rare to purchase a home that you will not want to make some changes to. Even paint costs money, so plan ahead to have some funds available to make your new house your home.
At Sherwood Mortgage Group we help our customers make the most of their ownership experiences with great rates and all-star service that can result in substantial savings.
Is your mortgage coming up for renewal? Want to make sure you have the best rate and most favourable terms available? Sherwood Mortgage Group can provide a single point of access to the best rates from our diverse group of lenders. We work with many lenders, both institutional and private, to provide the broadest range of options for you. We also have access to unpublished rates available exclusively to select mortgage professionals.
There are times when interest rates have dropped enough to make it worth your while to switch to a new mortgage even before your renewal date. There is a penalty to be released from your current mortgage so the rate differential needs to be significant before this option makes sense, but a Sherwood representative can help you determine what's best in your situation.
Switching has no negative impact on your equity or your credit. Switches are exact dollar for dollar payouts, providing your current lender with all outstanding principal and simply creating a new mortgage in that amount.
In some cases, securing full funding for the purchase of a property can be challenging. A second mortgage can be the answer. These additional funds can enable you to close the deal on your property!
Your home is likely your most valuable asset, particularly if you have built up equity by paying down your mortgage over time. You can borrow against that equity, if needed, in order to finance other goals that require substantial cash investments - e.g. renovations, purchasing a business, buying a cottage, etc.
As with any type of mortgage, Sherwood can help make it easier to get the most favourable rate and terms. Our network of lenders means you only have to apply once to receive multiple loan offers. In many cases we are able to secure exclusive, unpublished rates on behalf of our clients.
The equity in your home can finance your dreams and Sherwood can make it convenient, easy and fast. And, of course, as with all of our services, in most situations there is no cost to the borrower.
Typically, our services are provided at no charge to the purchaser as we are paid by the lender for most residential purchases. This does not mean that you pay a higher rate to the lender. In fact, part of our role is to ensure you get the best possible interest rate and most favourable term. In certain circumstances, such as when purchasing a commercial property or financing privately, Sherwood does charge a fee, all of which is disclosed at the time we become your mortgage broker.