Purchasing your first home can be incredibly exciting, whether you're doing it on your own, with a new spouse, or with your family. There are a number of government first time home buyer programs available to 1st time home buyers, including:
The Home Buyers' Plan (HBP) is an effective way to help first time home buyers access funds for a down payment. The plan allows for withdrawals of up to $25,000 per person (or $50,000 per couple) from registered retirement savings plans (RRSP's) to aid in buying or building a qualifying home.
Click these links to find out more about the Homebuyers Plan through Canada Revenue Agency for complete information and Download the RRSP Homebuyer Withdraw Form.
5% Down Payment Mortgages
The objective of 5% Down Payment Mortgages are to assist those with good credit and steady incomes to purchase a home. The 5% down payment mortgages can be ideal for:
Current renters who often worry they won't be able to afford a home or save enough money for a down payment.
Professionals starting their careers or may have large student loans. Thes mortgages can go as high as a 25-year amortization.
Down Payment from a Gift (Non-Borrowed Funds)
All or part of the minimum equity requirement (5% for down payment plus 1.5% for closing costs) may be provided by way of a financial gift as long as all of the following conditions are met:
• The lender has verified that the funds are in the recipient’s possession at least
15 days prior to closing
• The lender is satisfied that the money is a genuine gift
• The gifter is an immediate relative of the recipient
Homebuyers can receive down payment from borrowed sources that include:
• Personal loans or lines of credit secured or unsecured
Note: When using a borrowed down payment there are higher credit criteria and also increased insurance premiums.
Borrowed Down Payment
Homebuyers can get their down payment from borrowed sources that include lender cash back incentives, personal loans, lines of credit, credit cards or unsubstantiated gifts. However, when using a borrowed down payment, there are higher credit criteria and also increased insurance premiums.
To Speak directly about your specific situation and requirements, please contact me directly.
Alternatively, you can get the ball rolling by applying directly here on our website. Please enter as much information as you can, agree to the terms and send. It comes to me directly giving me the opportunity to review and have a more informed discussion with you. The application process also provides us with a "soft touch" of your credit bureau without affecting your rating but allowing us to paint a better picture of your specific situation.
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For all the first time home buyers, to channel their mortgages, there are a number government programs available. Once you are eligible for these programs, you can acquire any one of them. The government has some programs like First-time home buyers' credit, RRSP home buyers' plan (HBP), 5% down payment program, HST new housing rebate and Land transfer tax rebates.
There are a number of steps which both your mortgage agent, real estate agent and your lawyer have to do through the process of property ownership. Click here to see a list of information your can download to educate yourself or contact me directly.
5% down payment is available to you for homes up to $500,000 as the purchase price. First time Home Buyers will have to put 10% "on the portion" of the price over $500,000. For instance On a purchasing a home for the price of $700,000, the minimum down payment the buyer has to pay will be calculated as 5% on the first $500,000 payments that will be around $25,000 and 10% on the next $200,000 which would be around $10,000. So the total down payment will sum up to $35,000
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