You have lots of questions. We have a custom presentation and preapproval consultation specially designed to meet your needs.
A home is one of the biggest purchases of your life and you have a lot of questions about the home buying process. The amount of new information in the marketplace can seem overwhelming. Here are just a few of the things you need to consider:
- Can I qualify for a mortgage?
- How much can I afford to borrow?
- Where can I get the best mortgage rates?
- What mortgage term is right for me?
- What other costs should I expect?
- Can I use my RRSP funds for a down payment?
- What do I need to know about payment options, mortgage portability and other conditions.
As a first time buyer, there are opportunities available only to you that are unavailable to repeat purchasers:
- The Province of BC offers Property Purchase Tax exemptions for first time buyers of qualifying properties (includes a price cap). BC Property Transfer Tax
- RRSP Home Buyers Plan. Canada Revenue Agency RRSP Homebuyers Program
- 100% financing and other low down payment mortagage products
Whenever the down payment is lower than 20%, most lenders are required by law to insure the mortgage against default. This default insurance is provided by two main institutions in Canada: CMHC, a Federal Crown Corporation, and Genworth Financial Canada a private sector insurer. The insurance premium is a one time amount which is normally included in the mortgage. Because the risk to the lender increases as the down payment gets smaller, the insurance percentage gets larger accordingly.
As an alternative to default insurance (or in combination with), RRSP Home Buyers Plans can be used to withdraw funds tax free from your existing RRSP to use as a downpayment. This can help you to reduce or eliminate the potential default insurance premiums, and can also help you obtain more purchasing power by combining your RRSP funds with the maximum mortgage you can afford.
We can gladly guide you through the available programs that best suit your needs! Contact us today for more information.