Mortgage Financing For First Time Home Buyers
You are starting on your path to homeownership by either saving for a down payment or already have saved this and are now considering mortgage financing.
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We Offer Mortgages For First Time Home Buyers
Helping first time homebuyer’s is our business’ lifeblood. We have built our reputation in Oakville by guiding our clients down this path and making the experience as seamless and easy as possible. Consider some of the factors on this page and then speak with us today to learn more.
Preparation For Your First Home
The most important thing to consider before becoming a first time home buyer is the viability of your finances pre and post purchase. What does this mean?
Build a working budget for yourself by noting monthly expenses and desired savings. The remainder of this amount is the mortgage payment you can afford. Use a mortgage calculator to work your way to the amount of mortgage you can afford given a down payment of 5%, 10% or 20%+.
If you have not saved your down payment already, prepare a path to save that money given the level of property that you can afford. Here are some tools to help save:
- RRSPs: The government of Canada lets you take an advance on your down payment for a mortgage by ‘borrowing’ upwards of $25K from your RRSP. This is a loan of sorts since it must be repaid in 15 years – but it is a highly useful tax free mechanism. To learn more click on this link: CRA Home Buyers’ Plan
- TFSAs: Maximize your contribution to your TFSA every year. Basically you can put thousands of dollars into a TFSA, and not pay taxes on capital gains. When it comes time to purchasing your house, you can cash out the TFSA for a hefty down payment. To learn more click on this link: CRA Tax-Free Savings Account Information
- Employee Purchase Plans: If your employer lets you contribute in a share purchase plan, use it! The savings add up and may give you capital you need to cover your down payment.
There are a number of other perks that the government have set up to help with first time homeownership:
- HST New Housing Rebates: Buying a house in Ontario lets you avail a tax rebate which applies to new home purchase. Click here for details.
- First time homeowner Tax Credit: If you’ve not been on title for a home for 4 years (basically have not owned), you may get up to $5K in tax credits.
- Energy Efficiency: There are several energy efficiency programs that can help add benefits. Genworth for example provides a list here: Click for details.