If you’re ready to purchase your first home but you need a bit more money for the down payment, the Home Buyers’ Plan (HBP) allows you to withdraw money from your RRSP to finance the purchase of your first home.
You’ve decided to buy your very first home in 2017. You’re about to start looking for houses on the market. Let’s review your decision to ensure that you’re in fact ready for this step. Continue reading →
Here are the answers to your questions about mortgage loans.
What is the minimum down payment?
You need to put down at least 20% of the selling price to qualify for a mortgage. If you don’t have 20%, you can take out mortgage insurance and you’ll only need to put down 5%. In both cases you need to prove you have 1.5% of the selling price to cover start-up costs.
How can some builders have properties for sale without requiring a down payment?
Some builders do offer Canada Mortgage and Housing Corporation (CMHC)-approved programs that don’t require a down payment. However, the programs usually have very specific eligibility criteria and the down payment is often just delayed.
There are really only a few exceptions to the legal requirement to make a down payment when buying a property. The best way to lower your down payment is to insure your mortgage with CMHC or Genworth. Insurance can get your down payment to 5%.
As with traditional mortgage loan insurance, every down payment has to come from the buyer’s own resources or close relatives.
Debt-savvy buyers can put 5% down and access many resources, including a loan or lender incentives, as long as the down payment is from a source that is arm’s length to and not tied to the purchase or sale of the property. Contact your lender to see if they can offer you mortgage insurance and if you’re eligible. Continue reading →
With a lot of discipline and determination, you can stay on top of your debts. Some decisions you make when buying a home can substantially reduce your interest fees.
Here are some things that could have a big impact on how much money is left in your pocket.
Make the largest down payment you can
This will reduce the amount of your mortgage and the length of time it takes you to repay it. To help you increase your down payment, you can use the Home Buyers’ Plan. To avoid paying interest needlessly, consider buying a smaller home and paying it off in a period of 17 years. Continue reading →
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