Since I am new to homebuying and Canada I have few more question on real estate- 1. Typically to search a home + close a

Hi there. First step into finding a home should be as follows

a) Speak with a mortgage advisor at the bank to see if you can be pre-approved for a mortgage. If so, what the amount is - that will determine your maximum budget for your home.

b) Find a real-estate agent you trust/like, have them represent you during your home buying experience.

c) Once the Agreement of Purchase and sale is finalized, return to your mortgage advisor and have them finalize your mortgage.

d) hire a lawyer to complete the transaction. Your lawyer does not draft your agreement of purchase and sale, your realtor does. We have standard forms in Ontario.

2) fixed rates vs variable rates is with regards ***** ***** mortgage interest. Fixed rates will obviously be something like 3% interest rate. Whereas variable interest is prime rate +/- a certain percentage. The choice really is your bet as to whether or not prime rate (as set by the government of Canada) will increase.

3) you can get mortgage insurance to avoid paying the 20% nonpayment. But it is usually not worth it because the monthly rate for mortgage insurance is fairly high.

1) the lawyer does the title searches to see if there are any defects and registration of the property (the actual transfer) as well as the registration of any mortgages on the property. They normally purchase title insurance on your behalf as well.

2) The A-Lenders bank USUALLY give the best rates however, that is not always the case. Sometimes large b-lenders (like HSBC Canada) will give lower rates, always shop around

3) It is possible, it just depends on when your mortgage is up for renewal and whether if it is an open (large repayment allowed) or closed (no large repayment allowed) mortgage.

4) Not necessarily, amortization period is negotiated with the lender. Usually when you buy mortgage insurance, you will have the same options as someone who did make the 20% down payment. So 30 years will be available to you.

5) yes. you can get multiple pre-approvals, you can also pit one bank against another to get lower rates.