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Purchasing your first home?

 

Are you a first-time home buyer? we make dreams of owning a home a reality for first-time home buyers. Whether it’s a condo, townhouse or a detached house with a white-picket-fence, there are few perks you are entitled to. As a first-time home buyer are entitled to some perks. These perks include, but are not limited to the following:



Registered Retirement Savings Plan Withdrawal


A second benefit that is available to first-time home buyers in Ontario is that they are able to withdraw up to $35,000 of their Registered Retirement Savings Plan (RRSP) through the Home Buyers’ Plan (HBP) to be used towards the purchase of their first home. This amount will have to be repaid in 15 annual installments after a 1 year grace period from the date of purchase or withdrawal.



Minimum Down Payment Requirements


In Canada, home buyers will be required to put down 10% on the portion of the home’s price above $500,000. Buyers can still put down 5% for homes $500,000 and under. In some instances, they may qualify to purchase a home with no money down! This helps to ensure you are dedicated to making your mortgage payments and keeping your home.


Don’t forget there are also closing costs which include Property Purchase Transfer Tax, legal fees, property tax adjustments, GST, utility adjustments, property inspections, appraisal fees, and more. A general rule of thumb is to allocate approximately an additional 1.5 to 2% of the purchase price to cover these closing costs

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CMHC First-Time Homebuyer Incentive


As of March 2019, Canadian Mortgage and Housing Corporation (CMHC) will provide 5% of the cost of an existing home and 10% of the price of a new home through what amounts to an interest-free loan to be repaid when the property is sold. The money would go to first-time home buyers applying for insured mortgages. The key stipulations are:

  • Users must have a down payment of at least 5%, but less than 20%;
  • Household income must be less than $120,000;
  • The purchase price cannot be more than four times the buyers’ household income.


For example, say you’re hoping to buy a $400,000 home with the minimum required 5% down payment, which works out to be $20,000. With the new incentive, you could receive up to $40,000 (for a new home) through the CMHC. Now, instead of taking out a $380,000 mortgage, you’d need to borrow only $340,000. On a standard mortgage at 3.5% interest, that translates into a monthly mortgage payment more than $200 lower than it would have been for the 25-year life of the loan. That’s more than $2,700 a year in potential savings.



Can I qualify for a First-Time Home Buyer Mortgage?


Depending on the credit history and if you have been previously discharged from a bankruptcy or have been behind on some bills or payments, mortgage financing may still be available to you. Income, down payment, and employment stability are also considered when applying for a first-time home buyer mortgage in ON. Contact us today to find out more.



How Can You Determine How Much of a Mortgage You Qualify For?


Several factors are involved in determining your purchase potential or how much you qualify for. These include, but are not limited to income, credit, job stability, down payment, and other debts outstanding etc. The best way to find out what you qualify for is to contact your Mortgage Professional directly or apply now.

Rate

 

A SIDE (Based on qualifying terms)

5 Year -

Variable Rate Prime - .10% = 2.35%

Fixed High Ratio -  2.69%

Fixed Conventional - 2.79%


B SIDE (Bad credit/Low income)

1 Year or 2 Year Fixed - 3.69%

3 Year-3.99%


PRIVATE LENDER'S

First Mortgage - 5.49%

Second Mortgage - 6.99%

Third Mortgage - 10.99%


All rates are subject to change without notice. Rates and Terms must meet qualifications for each program.