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Blog by | March 31st, 2007

For a Mortgage you will need:
*Full-time employment or stable income
*proof of income
*good credit rating
*verifiable down payment

For a down payment you can use:
*RRSP (Registered Retirement Savings Plan) up to $20,000
*A gift from your immediate family
*accumulated savings

Costs Involved with obtaining a mortgage:
*Legal costs (between $600 - $1,000)
*Insurance on the property and mortgage applicant
*In some cases an appraisal is required

How long does it take to obtain a mortgage
*Approx. 2 weeks

*You can obtain pre-approval 60-120 days before your purchase

How much money can you borrow:
*It varies depending on different lenders criteria
*Amounted are calculated on your Gross Debt Service (GDS) which is what you can afford to pay each month and your Total Debt Service (TDS) which includes GDS plus any other expenses you have (car payments, student loans, etc.)

Under the First Home Loan Insurance Program, as a first time home buyer you only have to put 5% down.

You should budget about 3% of the purchase cost for closing costs (land transfer tax, legal fees, and other disbursements)