What’s the best home ownership plan?

    Read our article in the Inside Out Magazine, eversion  

    Owning a home is much more than a lifestyle choice — it’s an investment that grows in value over time.

    A mortgage from Scotiabank can make this investment possible. We’ll work with you to design a mortgage that meets your needs and your budget. With our help, you can find that it’s more affordable than you realized. So it makes sense to buy your first home as early as possible. By borrowing wisely for your home today, you can be better off financially in the future.

    A Scotiabank mortgage gives you several advantages   

    • Designed to fit your budget.
    • Repayment options that can help you be mortgage-free sooner and save on interest
    • Helpful advice to ensure you get the mortgage solutions that’s right for you.
    • Peace of mind with automatic, worry-free payments from your Scotiabank account.

    Get the mortgage that’s right for you

    Fixed Rate Mortgages offer you the security of knowing your interest rate will not increase over the mortgage term you choose. Your rate is fixed for a specified term. At the end of the term, you can simply extend for another term (i.e. 1, 3 or 5 years) at the fixed rate in effect at that time.

    Variable Rate Mortgages fluctuate with market conditions. This can be an attractive alternative if you think that interest rates will decrease in the years ahead. If the prevailing interest rate goes down, so does the interest rate on your mortgage. However, if the prevailing interest rate goes up, your mortgage rate will rise accordingly. Rates will vary.


    How Much Can You Afford?

    Buying a house essentially comes down to two key commitments:

    • The amount you can afford as a down payment
    • The mortgage payments you can afford

    Start here!

    Start by checking out our new easy-to-use online Mortgage calculators at cayman.scotiabank.com/gofigure

    Within seconds, you’ll figure out:

    • How fast you can save for a down payment
    • How much you can afford to spend on your dream home
    • How a little extra every month can knock years off your payments.
    • And much more

    You’ll also get a helpful printout to bring with you to the branch.

    Ideally, your total monthly obligations, including your mortgage payment and other debts, should not exceed 45% of your monthly income.

    To learn about the maximum monthly mortgage payment that is right for you, simply speak to a helpful Scotiabank Mortgage Specialist. We’ll make the calculations for you in minutes, based on your current income and expenses.

    How Much Can You Borrow?
    To find out how much you can comfortably borrow to finance your new home, talk to a Scotiabank Mortgage Specialist. We can help design a personalized mortgage solution that enables you to purchase a new home yet still live comfortably within your budget.

    Buy a home with less money down
    It is possible to buy a home with a smaller down payment. To do so you simply apply for Mortgage Indemnity Insurance. This type of insurance lets you put less money down on your home for a nominal fee that can be added to your monthly mortgage payments. Ask your Scotiabank representative for more details.

    Additional Costs You Should Know About
    While your mortgage will cover the purchase price of your home, it’s wise to consider the other expenses involved in buying a home. You’ll pay some costs at the beginning of the home-buying process and others, known as closing costs, when your home purchase is finalized.

    Mortgage Checklist
    Once you’ve decided that you’re ready to go ahead with a mortgage, you’ll need the following list of documents. Don’t worry if it sounds a little confusing right now. A Scotiabank Mortgage Specialist will help you along the way.

    • Proof of age, 18 to 65 years (valid passport or birth certificate)
    • Proven creditworthiness
    • Total Debt Service Ratio (TDSR): self-employed up to 40%; salaried up to 45% (monthly debt payments not to exceed 45% of gross salary)
    • Completed Mortgage Application Form
    • Income verification:
    • Proof of current residence (ie. Utility bill)
    • Salaried letter from the employer and last two pay slips
    • Self-employed: financial statements, bank statements, cash flow statements
    • Signed Agreement of Sale, where appropriate, or Construction Estimate, if the purpose of the mortgage is construction or home improvement
    • Proof of funds to complete the transaction


      ADDITIONAL COSTS 

    Appraisal Fee    This is the fee for determining the property lending value for mortgage purposes. This value may or may not be the same as the purchase price of the home.
    Property Survey     A survey indicates the boundaries and measurements of the land and positions of major structure, and any registered or visible easements (such as a driveway) or encroachments (such as a neighbour’s fence) on the property.
    Related Taxes/Fees    May be asked for before signing an offer
    Stamp Duty    A government tax levied against documents relating to transfer of property
    Indemnity Insurance Premiums    Payable on loans where a smaller down payment is made
    Home Insurance    Protection for your home and contents
    Creditor Life insurance    Mortgage life insurance provides peace of mind. It protects your family’s financial security by paying  off all or a portion of your mortgage in the event of the premature death of the borrowers.

     

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