There are a few differences between buying your next home and buying your first. Here’s what you need to know, the new things you’ll need to decide on, and how we can help make this incredibly easy for you with an amazingly low rate.
Things to Consider When Buying Your Next Home
If you're in the market for your next home, there are a number of things to consider, including:
Do you want to keep your current home as a rental investment property?
Do you plan to sell your current home to buy the next one?
Do you plan to sell first and then buy, or buy first and then sell?
Should you port your current mortgage or break it and get a new one?
How much will you have for down payment after realtor fees and closing costs?
Do you want to put all your sale proceeds towards your down payment or hold some back for renovations or furniture?
We can help you sort through these choices and find the right mortgage strategy for your next home.
If you’re planning on selling your home to buy your next one, the first thing to determine is how much you will have to put towards your down payment on your next property.
We provide all of our clients with a “How Much Will I Have for Down Payment?” document that breaks down the numbers for your situation so we know exactly what we’re working with.
If your goal is to keep your current home as an investment property, we can explore the option of refinancing your current property to use the equity in your current home towards the down payment on your next home.
When you’re purchasing a primary residence in Canada the minimum down payment is 5% on the first $500,000 of the purchase price, and 10% down payment on the amount above $500,000.
If the purchase price is over $1,000,000 you must put 20% down.
We find that most people choose to use as much money towards their down payment as possible in order to maximize what purchase price they can buy their next home at.
The second most common approach is to hold on to some of your sale proceeds, instead of putting it all towards your down payment, and using this money for home improvements or furnishing your new home.
Porting Your Mortgage
It is often best to port your current mortgage to the next property in order to avoid paying a penalty for breaking your current mortgage term.
However, there are times when it may make sense to break the mortgage, pay the penalty, and get a new mortgage when the interest rate on the new mortgage is much lower. Sometimes the savings from the lower interest rate will offset the penalty.
We will help you make the best decision by looking at both options and comparing them.
If you need a higher mortgage we can do a “port and increase” and the interest rate would be a blended rate of your current mortgage rate and what is currently available.
When your down payment for your next home is coming from the sale proceeds of your current home, but your purchase closing date is before the closing date of your sale, bridge financing can be used.
When moving from one house to another, bridge financing is a convenient way to make the transition easier because you will own both houses at the same time for a short period.
This can make moving day easier, or give you time to go in and give your new home a fresh coat of paint while it’s still empty.
Almost all lenders allow us to arrange bridge financing easily, so if this is something you need or want, we can absolutely accommodate this.
Maximum Purchase Price
Your maximum purchase price will be dependent on your household income, your debt obligations, and how much you’re putting towards down payment.
Once we collect your mortgage application information and supporting documents we will be able to tell you your maximum purchase price and show you various options so you can begin to look for your next dream home with confidence.
The documents needed include the following:
Proof of income documents (example: Letter of employment, paystub, recent T4s)
Proof of down payment documents (example: recent bank/investment account monthly statements)
Supporting documents for properties you currently own (if applicable)
Depending on your goals and the information you provide, the documents we need may differ from this list.
We will let you know exactly what documents we need from you once we receive your mortgage application information. Emailing us your documents is easy and convenient.
It's generally recommended to expect at least 1% to 3% of the purchase price in closing costs.
Each client receives a closing costs document that breaks down all the costs so that there are no surprises and you are completely comfortable.
How Much Money Can I Expect to Save With Dominion Lending Centres?
As one of Canada's largest mortgage brokerage companies, Dominion Lending Centres offers the best rates and products available.
Our large volume gives us access to discounts - and we pass those savings along to you.
Sometimes we can even get our clients better rates from their own banks than what they can be offered at the branch.
In addition to great savings, you also get unbiased advice from an experienced mortgage broker that is dedicated to you and focused on giving you an amazing experience.
Bottom line: Your home purchase is one of the most important financial decisions you'll make, and getting professional, unbiased advice from an experienced mortgage broker makes sense.
It’s free, it’s easy, and it saves you time and money. So get your FREE no-obligation consultation today!
Take the Next Step Today
Take the next step right now by pressing the button on this page to get started.
After you fill in your name, email, and phone number you will be redirected to the online mortgage application so you can begin providing your information immediately. Alternatively, feel free to wait for our call and we’ll do it all over the phone.
We look forward to having you as our next valued client.
“Dominion Lending was able to help my family get out of our financial situation very quickly and very professionally. Catherine was able to secure a lender for us when other company's were not able. We highly recommend using her company.”
“Our experience in dealing with Catherine Evel for obtaining our mortgage was nothing short of excellent. All our questions or concerns, which were many, either sent by email or phone calls were returned promptly. Catherine is a true professional and we highly recommend her services.
R.Roy and P.Cryne”
“Catherine has helped us get mortgages for 10+ years now. She helps us to get the best competitive rates. She provides advices to best suit our financial situations and get the best outcomes. She makes sure all inquiries are top priority and respond promptly. We highly recommend her and we will only go to her for our future mortgages.”
“Catherine and her team are exceptional. As a real estate professional I have worked with many mortgage brokers and Catherine is the most professional, attentive, knowledgeable and genuinely caring one I have ever had the pleasure of working with. I can’t recommend her enough.”
“Had a great experience. I had a short time frame to ensure I had funding for my mortgage and Catherine handled it with ease. Communication was quick, clear, and comprehensive. Absolutely would recommend.”
“I have used Catherine Evel as our Dominion Lender broker for 5 transactions now. Working with them definitely brings the stress of moving and remortgaging down. Very impressed with the efficiency and thoroughness of this group and I have recommended them to many others.”
“Great service! We've been customers for over 10 years! I recommend to all.”
“Over the past several years, we have had the opportunity to work with Catherine as she searched for the best mortgage options based on our needs and situation. During this time, Catherine went out of her way to help us in every way possible. She not only helped to find the best mortgage situation for us but, also, offered some beneficial advice at the same time. Our experience with Catherine and her team has been nothing but extremely positive. I would recommend Catherine to any family or friends. Thank you, Catherine!”
“Catherine and her team were recommended to us by our real estate agent when we were purchasing our new home. From our first visit to our last phone call, Catherine and her team have been wonderful! Everyone has been very polite, helpful and patient with all our questions, no matter how many times we asked for further explanation. I would strongly recommend Catherine and her team to anyone who is looking for a mortgage professional. We will certainly continue to use Catherine's services.”