Ben Lovatt Alliston Real Estate We Sell Homes

Welcome Home

Thank you for visiting my website! First time homebuyers should browse my homepage for great warm up information that will help get you prepared for your first home purchase. 



Full service real estate you will not be dissapointed with.

How Much Can You Afford?

Whether you are buying for your first time or your tenth, It's nice to have an idea of how much you can afford to spend.Use this handy guide to help pre-determine your price range:


Step #1:

Determine your total income by adding the following figures;

- Your annual salary before tax

- Your spouses annual salary before tax


Step #2:

Multiply your total income from Step #1 by 3.25. This will give you an idea of how much of a mortgage you can carry


Step #3:

Add the amount you can afford as a downpayment to the figure from step #2. This will give you a rough idea of the price range you should be looking in.

Before You Start House Hunting

Pre-approval letter offers you the following benifits:


  • Allows you to know the amount that you qualify for


  • Proves to realtors that you are a well-qualified buyer who is serious about purchasing a home


  • Sellers are more likely to negotiate with someone whom they know to be financially qualified to close the transaction


  • Be confident when you make an offer that you can follow through on your mortgage payments


  • Streamlines the approval process, saving valuable time
  • It will also ensure that no surprises come up when closing the sale, as a credit check has already been done 

First Time Home Buyers; Mortgage Information

Pre-Approval For a Mortgage...What Do Lenders Want From you?

  • Personal info (age, marital status etc)
  • Financial info (employment details; T4 slips, financial statements, or letter from employer)
  • Current banking info
  • Proof you can afford the downpayment
  • Your consent to run a credit investigation
  • List of your assets (property, vehicles etc)
  • List of your liabilities (credit cards, car loans etc)
  • Appraisal of the property you wish to buy

Once You Have Been Approved and Found a Home;

  • All documents related to the purchase of the home (Copy of listing, copy of the agreement of sale etc.)  

Down Payment Options For First Time Home Buyers

1. Home Buyers Plan (HBP)

  • HBP program allows first time home buyers to withdraw up to $20,000 from your registered retirement savings plan (RRSP's)
  • Withdrawals do not have to be included in your income, and your RRSP issuer will not withhold taxe on these amounts
  • Under the HBP you are required to repay all withdrawals to your RRSP's within a period of no more than 15 years
  • You must purchase or build the qualifying home before October 1st of the year after the year of withdrawal

2. Scotiabank Free Down Payment Mortgage

  • The primary barrier for young Canadians to owning a home is the sizeable down payment
  • Scotiabank is offering the Free Down Payment mortgage which allows you to use the savings you do have for new home furnishings, decorating, moving costs etc.
  • This mortgage features 5% down payment provided by Scotiabank, 5 or 7 year terms, discount of 5% off the 7- year posted rate and a low mortgage insurance premium


If You Are Still Paying Rent To Someone Else, This Might Interest You:


If Your Monthly Rent Is:               You Can Afford A Mortgage Of:

$500                                           $90,000

$650                                           $110,000

$800                                           $130,000

$900                                           $150,000

$1000                                         $170,000

*Estimated amounts based on interest rate of 5.25% and 25 year amortization


Types of Mortgages


"Your budgeting needs and your ability to take risks determines the type of mortgage that is best for you."


Fixed-Rate Mortgages:

  • With fixed rate, the interest rate is set for the term of the mortgage
  • Your monthly payment of principle and interest will stay the same throughout the term
  • This promotes peace of mind and helps allow you to budget for your other priorities
  • You are protected if rates go up, but disadvantaged if rates go down

Variable-Rate Mortgage  

  • Also known as floating or adjustable-rate mortgage
  • Allows for maximum flexibility when interest rates are fluctuating
  • The rate is based on the prime lending rate and can be adjusted to reflect the economic climate

Pro's of Variable-Rates:

  • Will probably offer a lower interest rate
  • The amount of your payment is likely to remain constant, but the ratio between principal and interest may fluctuate
  • Therefore when interest rtes are on the decline you pay less interest and more principal
  • If you are good at coping with uncertainty this may be a wise option for you

Con's of Variable-Rates:

  • There's always the possibility that interest rates will rise
  • Increasing interest rates means that less of you payments are going towards the principal
  • Should interest rates rise dramatically, your payment may only cover the interest and not go towards the principal at all
  • You may be asked to increase your monthly payment

Featured Listings

There are currently no featured listings.

Featured Listings

There are currently no featured listings.
Home  |  Featured Listings  |  Home Search  |  Home Evaluation  |  Calculators  |  Buying  |  Selling   |  Lifestyle   |  Home Improvement  |  Contact Me  |  About Ontario  |  Quality Stonework

Privacy Policy  |  Site Map  |  Profile  |  Sign In