First Time Home Buyers

Purchases for a Principal Residence

You can buy a home with as little as 5% downpayment for all homes that are $500K or less.  Anything above $500K will be a 10% downpayment on the difference.   

 Example:

$600K purchase price total
1st $500K- min downpayment is 5% = $25K
10% on anything above $500K= $100K x .10%= $10K
Therefore total downpayment is $25K + $10K = $35K

***To purchase a home for $600K, the minimum downpayment is $35K***

Many people don’t realize the complex Mortgage Rules we have in Canada.  And also the various programs we have available for each individual. And with the help of your Mortgage Broker, you will be able to purchase your dream home.  We can truly help you find a mortgage that is right for you!

First Time Homebuyers Plan

We realize as a first time buyer, getting a mortgage can be very overwhelming.  We will do a full consultation with you to assess your needs, and discuss your Mortgage Options.  And once you find a home, we will assist you with every step of your financing until your mortgage closes.  

  • We will pre-approve you, and do a 120 day rate hold on the best fixed rate
  • Prepare you for the total anticipated costs you need to save for to purchase a home…eg. downpayment, real estate commissions, land transfer tax costs & legal costs in advance
  • Work with your realtor to make sure the financing is in place to secure the offer of your home
  • Explain in detail all the paperwork that the banks require
  • Work with your lawyer to make sure they get solicitor`s instructions and close on time

First Time Homebuyers Plan using RRSP`s

Today, about 50% of first-time home buyers use their RRSP savings to help finance a down payment. With the federal government's Home Buyers' Plan, you can use up to $35,000 in RRSP savings ($70,000 for a couple) to help pay contribute towards your down payment on your first home, without being taxed upon withdrawal. You then have 15 years to repay your RRSP.

How can I qualify?

  • The RRSP funds you're using must be in your RRSP account for at least 90 days to be able to use the funds
  • You need a signed accepted agreement of purchase and sale to qualify and redeem your RRSP’s as a first time homebuyer

Even if you have already saved for your down payment, it may make good financial sense to access your savings through the Home Buyers' Plan. For example, if you had already saved $20,000 for a down payment - and assuming you still had enough "contribution room" in your RRSP for a contribution of that amount you could move your savings into a registered investment at least 90 days before your closing date. Then, simply withdraw the money through the Home Buyers' Plan. 

Advantages on using your RRSP`s:

  • Your contribution will count as a tax deduction this year. Use any tax refund you receive to repay the RRSP or other expenses related to buying your home. 
  • You maybe able to buy a home sooner by using your RRSP`s for your downpayment

New to Canada Program

Canada has an increasing growth population of New Immigrants, and Permanent Residents in Canada.  We have various programs for people with newly Landed Immigrant status, Permanent Resident status, and Work Permit status if you have relocated to Canada within the last 5 yrs.

Newcomers to Canada can purchase a home with the minimum downpayment as per CMHC/Genworth/Canada Guaranty rules.  If you are full time employed but have very little Canadian Credit history, or no Canadian Credit at all. We can accept International/ United States Credit reports, or other forms of credit history in replacement of having no Canadian Credit.

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