First time homebuyers mortgage guide
Transcript of First time homebuyers mortgage guide
First time homebuyers
mortgage guide
Exclusively for members of
The Education Community and their families
Welcome!
Bruce SelleryFounder of Moolala, a personal finance training company focused on inspiring people to actively manage their money. Bruce spent the last decade as an anchor at CTV’s Business News Network, in Toronto and New York.
Pat BellissimoPat has a passion for sharing her knowledge of successful financial strategies. An expert on mortgages, Pat has successfully helped hundreds of clients with mortgage solutions tailored to their financial needs.
Educators Financial Group
• Established in 1975
• Started with mortgages
• Today
– Planning – Investing - Lending
– Assets under management: over $500 million
– 16,000+ clients (Ontario and British Columbia)
• Experienced and qualified experts
We know members of the education community best!
Unique, exclusive advantages for educators
About this webinar
Will I be able to get a copy of the slides after the event?
Is this webinar being taped so I and other can view it after the event?
Yes
Yes
What we’ll cover today
• How much can I afford?
• What type of mortgage is right for me?
• Frequently asked questions
• Tips on how to be mortgage free faster
• How do we actually do it?
How much of a down payment do I have?
Down payment sources Amount
Savings $
RRSPs $
Family gifts $
Inheritance $
Gratuity $
Other $
TOTAL $
Is it enough?
An example
$200,000 home $10,000.00
- High ratio mortgage tax premium (premium added to mtg.)
$418.00
-Ontario Land transfer taxes
-www.realestatelawyertoronto.com
$1,725.00
- Legal fees $1,200.00- Appraisal fees $ 300.00-Other $ 0.00
Sub-total $3,643.00
Total $13,643.00
Take control of your budget
Have options: know where your money goes.
Cash Flow Statement Example You
MONTHLY INCOME: (after tax) $3,000 $
MONTHLY EXPENSES:
Mortgage $700 $
Food $500 $
Utilities (Cable / Internet / Gas) $165 $
Insurance $150 $
Other debt (Credit card / Car / Student loans) $200 $
Entertainment $250 $
Miscellaneous (Child support etc.) $300 $
TOTAL $2,265 $
Income - Expenses $735 $
What can I afford… upfront?
My true down payment
High Ratio (5%)
$10,000 $200,000
Your monthly mortgage payment on 195,225.00 ($190,000. plus 5,225.00premium) would be*:* Based on a 25 year amortization period and a 5-year closed term at a X% mortgage rate
$1025.86
Be sure to shop around for the best rate
†Based on our comparison of posted rates for 5-year fixed mortgages. Not all offerings have the same features. For illustration purposes and based on where there has been a rate change
Call for a quote: 1-800-263-9541 - 416-752-6843
SummerFreedom
Unique and exclusive to the education community
One of Canada’s lower cost mortgage provider
There are many things to consider
Feature Options
Rate Fixed – Adjustable - 50/50
Amortization Up to 35 years: high ratio
Up to 40 years: conventional
Terms Wide range
Payment frequency
Semi-monthly (6)
Monthly (12)
Accelerated bi-weekly (26)
Accelerated weekly (52)
Prepayment 10%
20%
Why buy mortgage insurance?
• Protect what you already have
• Applying is easy
• Coverage is quick
Right mortgage
Right protection+ = Peace
of mind
www.teacherslife.com 1-866-620-LIFE (5433)
Simplify your work by partnering with the right professionals
1. Right real estate agent
2. Home inspector
3. Lawyer / solicitor
4. Lender (and property appraiser)
Make sure they…
Share your values
Want to know your priorities
Have experience
Specialize in real estate
But will I get the money?
• Past credit history
– Beacon Score of 625+
• Current cash flow
– GDSR / TDSR
“My friend had a 20% down payment. How could his mortgage application have been declined by his bank?”
We’re here to help
Leverage the expertise of our mortgage specialist to help you identify
•What you can afford
•What type of mortgage is right for you
•How you can be mortgage free faster
Why is Educators Financial Group different?
•Exclusive to the education community
•We know educators best!
•Unique products and services tailored to educators
Five ways I can be mortgage free faster
1. Get the lowest rate you can
2. Pay weekly (or bi-weekly) instead of monthly
3. Increase your monthly mortgage payment
4. Make a yearly lump sum payment
5. Pay weekly, increase your payment, and make a lump sum payment
Small changes make a big difference in the long run.
Accelerate and make lump sum payments
Based on a $200,000 mortgage (5-year fixed term / 25-year amortization period) and a 5.5% rate.
Strategy Monthly voluntary increase
Lump sum payment
Total mortgage payment
Interest saved (over the life of the mortgage)
Slow and Steady
- - $1220.79 per month
None
Speeding Up - - $305.20 weekly
$30,176.61
Accelerated +$180 per month
- $1400.79 per month
$43,612.57
Turbo Charged
- +$5,000 per year
$1220.79 per month
+ $5,000 per year
$77,073.31
How do I actually do it?
• Book a mortgage call
416-752-6843 1-800-263-9541
• Sign up for the A-list
www.educatorsfinancialgroup.ca
Thank you!
Bruce Sellery Pat Bellissimo
The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the
rendering of tax, legal, accounting or professional advice. Attendees and readers should consult a financial planner and their own accountant and/or
legal advisor for specific advice related to their circumstances. Educators Financial Group will not be held responsible or liable for any losses, costs,
damages or expenses incurred by reason of reliance as a result of the aforementioned information. The information presented was obtained from
sources that are believed to be reliable. However, Educators Financial Group can not guarantee their completeness or accuracy. Commissions,
trailing commissions, management fees and expenses may all be associated with mutual funds. Please read the simplified prospectus before
investing. Mutual funds are not guaranteed, their value changes frequently and past performance may not be repeated.