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Homebuying Process

What to expect when purchasing a property.



Buying your first home is an exciting time, it will be a memorable experience that is often filled with a variety of emotions! Pineapple is here to help you understand the home buying process and get you started on the right foot. As you prepare, check out our videos that will walk you through the home buying process and then follow these steps below to achieve your homeownership dreams:

Step #1
One of the first considerations are the costs of homebuying: click here for more information on the costs of homeownership.

It’s also important to consider your current budget versus your anticipated budget as a homeowner. 

Step #2
Once you have determined your budget, follow these affordability rules to ensure you’re ready for homeownership.

Step #3
Next, it’s time to contact your Mortgage Agent or Broker to provide you with a mortgage assessment and discuss the options available that will suit your needs. You can complete a mortgage pre-approval online, from the comfort of your own home! This pre-approval will help your Mortgage Agent determine what mortgage amount you’re eligible for. Once you discuss and determine your mortgage amount and price range of property, it’s time to start looking! 

Step #4
Connect with a Real Estate Agent or simply start browsing properties on, or  

Step #5
Work with your Realtor and Mortgage Agent to make an offer on a property you want, and apply for a mortgage with a lender that has a product that best suits your needs. Your Mortgage Agent will be with you every step of the way, offering guidance, recommendations, and support.

Step #6

Start living your dream as a homeowner!

Here are some ‘mortgage terms’ you should familiarize yourself with at the beginning of this process:

Amortization period: The length of time you agree to take to pay off your mortgage.

Mortgage term: The length of time that the options and interest rate you choose are in effect. It can be anywhere from 6 months to 10 years. When the term is up, you can renegotiate your mortgage and choose the same or different options.

Payment schedule: How often you make your mortgage payments. It can be weekly, every two weeks (biweekly), once a month, or accelerated weekly or biweekly. Talk to your lender to see all possible options.

Down payment: The amount of money that you put toward the purchase of your future home. In general, to
purchase a property, the minimum down payment is 5% for a property value of $500,000 or less, and 10% for any
amount above $500,000. You will also need to prove the amount and sources of your down payment. Some common sources include personal savings, an RRSP withdrawal, a non-repayable gift from an immediate
family member, proceeds from the sale of other property, and funds borrowed against proven assets. Check with you lender for qualifying criteria.

Types of interest rates:

Fixed-rate: The rate doesn’t change for the term of the mortgage.
Variable-rate: The interest rate fluctuates with market rates.
Protected (or capped) variable rate: The rate fluctuates but will not rise over a preset maximum rate.

Open and closed mortgages:

Open mortgage: Lets you pay off your mortgage in full or in part at any time without any penalties.
Closed mortgage: Offers limited (or no) options to pay off your mortgage early in full or in part, but it usually has a lower interest rate.

Conventional and high-ratio mortgages:

Conventional mortgage: A loan that is equal to or less than 80% of the lending value of a home. This requires a down payment of at least 20%.
High-ratio mortgage: A loan that is over 80% of the lending value of a home. This means the down payment is less than 20% and will likely require mortgage loan insurance.

Contact your Pineapple Mortgage Agent or Broker for more information on the home-buying process and what else you need to consider when purchasing a property!