Buying your first home can be challenging and stressful, but it doesn’t have to be. Our team will take the time to educate and inform you throughout your mortgage process. Guiding you about everything from how mortgages defer between personally owned homes and investment properties, or between refinances and renewals; as well has to help you understand contractual terms, asking questions to allow you to think about short and long term goals, and help you balance the benefits and risks of various mortgage solutions! Our promise is to help you navigate the mortgage marketplace with the right advice and understanding about different products and features, to help you pick the one that best suits your financial needs.
As a first-time homebuyer, we will help you understand:
- Down Payment Options: Even if you are just in the saving and dreaming phase, it is never too early to talk to an agent and create your plan. Your down payment amount will determine how much you need to put towards your new purchase. With as little as 5% down payment, you can take advantage of the following programs:
- Gifted Down Payment: If you are lucky enough to have a family member assist you with gifted funds to be used towards your down payment, this is an excellent way to get yourself into home ownership. Gifted funds are an acceptable form of down payment. The money must be from a blood relative to a first-time home buyer and confirmed in writing that it does not need to be repaid. Most lenders have a standard gift letter you can complete for this confirmation.
- Home Buyers Plan: First time homebuyers can withdraw up to $35,000 each, tax free, from their RRSPs, as long as they follow the repayment plan – http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html . Speak with your investment advisor to get more background on how this program works.
- CMHC Homebuyer Assistance Program: This is a Federal Government shared-equity program where qualifying applicants can receive up to 10% in additional down payment through this CMHC program. You are still required to provide the first 5% down payment, but for qualifying applicants and properties, this can significantly reduce your new mortgage amount and therefor payment. Learn more about this program at https://www.cmhc-schl.gc.ca/en/nhs/first-time-home-buyer-incentive#:~:text=The%20First%2DTime%20Home%20Buyer%20Incentive%20is%20a%20shared%2Dequity,of%20a%20resale%20(existing)%20home or speak to one of our agents today!
As a first-time homebuyer, your advice and needs are special. Our team is trained to keep you informed and aspects you may not have thought of yet.
Here are some important details to keep in mind:
- Knowing Your Affordability: Dream homes can often blind us from what we can actually afford. That is why it is important to talk to a mortgage agent to really understand your affordability. By taking into consideration your current spending habits, monthly budget, savings goals, property taxes, utility bills, insurance costs and general upkeep, our team can help you set your goals and make your dream a reality!
- Your A-Team: Having a great team of professionals by your side will reduce stress from start to finish. We will advise you on choosing a realtor, lawyer, home inspector and of course, mortgage broker.
- Closing Costs: You always want to budget in your closing costs, which can include provincial and municipal Land Transfer Taxes, property searches, title searches. Lawyer fees and more. These costs are typically estimated between 1.5% and 3% of your home selling price.