First Time Home Buyers Mortgage
First Time Home Buyers Mortgage
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If you’re a first-time homebuyer, you ought to work with a broker who can provide you with personal attention and excellent service. Our knowledge of the mortgage industry will enable a stress-free home buying experience for you. Providing the lowest mortgage rate in Canada and explaining the entire home purchasing process are two of many value added services we provide.
Things to note about this type of mortgage…
We assist the first-time homebuyer through every step of the mortgage process:
- The Pre-Approval: Find out the purchase price that suits not just what the lenders approve you for but also your fits within your comfort zones of affordability in your budget. We will also let you know what type of paperwork will be necessary when you find the home of your dreams to help you get organized ahead of time.
- Purchasing the Home: Make sure to include a condition day; give yourself at least one week to finalize all financing. Using this time to have a home inspection is a great idea!
- Paperwork: Our Mortgage Specialist will meet with you to sign your mortgage commitment, collect all necessary paperwork and answer any and all questions you have concerning the terms of your new mortgage.
- Closing / Lawyer: All paperwork will be sent to the solicitor of your choice.
Each mortgage application is unique; making it a smooth and seamless process is what the Mortgage Specialists at Cheryl Wilkes Mortgages do best. Fill out our easy to follow online mortgage application
and let us help you make owning a home the experience of a life time!
You as a first time home buyer have an advantage no one else in the real estate market gets. You can access your RRSP accounts for your down payment. Standard rules states that any monies that have been in your RRSP account for longer than 90 days can be withdrawn with no penalties towards the purchase of your new home! The program also allows you to pull up to $35,000 and gives you 15 years for those funds withdrawn to be re deposited. Monies withdrawn are registered through CRA with your tax returns so you do not have to figure out how much per year much be put back into the account. Canada Revenue does it all for you!
You are also eligible for a tax credit in the same tax year as you purchase.
New 2019 First Time Buyers Incentive Program!!
On Sept 2, 2019 the Liberal Govt put in place a brand new incentive program to assist first time home buyers. Below is all the details you need to know:
Who is considered a first time buyer?
- You have never purchased or owned a home before
- You haven’t occupied a home you or a spouse has owned in the last 4 years
- NEW: if you are just out of separation or divorce
What do I need to qualify for the incentive program?
- You need your own 5% down payment (Saved Funds, RRSP or Gifted Funds)
- A maximum annual household income of $120,000.00
- Maximum loan amount is 4X the qualifying income based on stress tested rules.
How does the program work?
- Buyers can receive an addition 5% on a purchase of a Re-sale home
- Buyers can receive up to an additional 5% or 10% on a New Build Home with new home warranty
How do I pay it back?
Incentive payback will be based on the percentage of funds granted upfront and is based on equity gained or lost in the home when paid back at either of the 3 scenarios below. It is an interest free loan.
1- You sell your home
2- At the 25 year completion of payments
3- Any point in a 25 year timeline
*Repayment at any time will not incur any pre-payment privileges
* Equity Gained/Lost will be based on a fair market appraisal completed by CMHC
* Monies granted by CMHC will be registered on land titles at closing
Example if the property value decreases:
Buy new home at 350k – (10% of value) 35k granted at purchase towards down payment
Sell your home down the road for 320k – (10% of value) 32k payback to CMHC
Example if the property value increases:
Buy off MLS for 300k – (5% of value) 15k granted at purchase towards the down payment
Sell down the road for 320k – (5% of value) 16k payback to CMHC
For more information about the incentive program refer to the link below:
https://www.cmhc-schl.gc.ca/en/nhs/first-time-home-buyer-incentive
For more information about first time buyers options please visit the link for CHMC information.
