Through the Canadian Mortgage and Housing Corporation (CMHC) you can purchase a home with 5% down-payment.
The only requirements are:
More than $500,000?
If your home purchase price is more than $500,000 you can purchase your home with a 5% down-payment on the first $500,000 combined with a 10% down-payment on the excess amount between $500,000 and $1,000,000.
For more information click the following link: CMHC Homeowner Mortgage Loan Insurance
Traditionally any amount of money that you withdraw from your Registered Retirement Savings Plan (RRSP) is considered taxable income.
The RRSP Home Buyers’ Plan allows you, as a first-time home buyer, to make a tax-free withdrawal (up to $25,000) from your RRSP to use towards the down payment on your home. If applicable, your spouse or common law partner may also withdraw up to $25,000 for a total combination of $50,000.
IMPORTANT NOTE: Any funds borrowed from your RRSP is required to be repaid. The repayment must begin 2 years after your purchase and must be repaid within 15 years.
This is a Canada wide program supported by the Canadian Government.
This refund is available to you if you’re buying a home in Ontario, British Columbia and Prince Edward Island. The City of Toronto also has its own land transfer tax rebate that you may receive in combination with Ontario’s rebate. Depending on where you live will determine how much you will recover from your Land Transfer Tax (LTT).
Here’s how the Land Transfer Tax Refund works in Toronto, Ontario and British Columbia:
Covers LTT on home value of:
Partial refund available?
50% refund if spouse doesn't qualify
50% refund if spouse doesn't qualify
50% refund if spouse doesn't qualify
(For B.C. only) Partial refund for homes valued between $500,001 – $525,000, see following link for detailed chart.
For a detailed government definition of each province’s land transfer tax rebate follow the appropriate links below:
A nearly decade old program implemented by the Federal government, it allows first-time home buying Canadians to receive a tax rebate. It helps recover the costs surrounding a home purchase such as:
The tax credit will currently help you recover 15% of your closing costs, up to a max of $750.
In order to be eligible for the tax credit you must meet the following requirements:
This tax credit exists to assist first-time home buyers with the closing costs related to purchasing their first home. With this credit, you can receive up to 15% of your closing costs (to a maximum of $750) as a tax credit.
For more information follow the link to the government website, First-Time Home Buyers’ Tax Credit (HBTC)
Though this is not a rebate exclusive to first-time home buyers, we recommend that you take advantage of it if you’re purchasing a newly built home.
This rebate helps Canadian who paid GST or HST on their new home, renovating an existing home or rebuilding a home due to loss by fire. Canadians who qualify can receive a rebate on the GST they paid on their new home.
In Ontario you can receive a rebate on the HST you paid to renovate an existing home or the purchase of a new home.
In order to be eligible for the GST/HST New House Rebate you must meet the following requirements:
For more information follow the link to the government website, GST/HST new housing rebate.
Identification is used to verify your identity. While it’s a measure for preventing fraud, it’s essential for us to properly fill out your mortgage application.
It’s also a requirement so a lender can provide you with funding.
Income verification is required for your application so a lender can verify your ability to manage your mortgage payments.
Also provides essential information for us to assess your situation. Most of all helpful information to determine which mortgage product is appropriate for you.
It’s fraud if you falsify and/or exaggerate your income. Fraud for shelter is the most common form of mortgage fraud in Canada. Therefore we won’t tolerate this irresponsible and harmful behaviour.
It is important to be honest and precise with your income so that you aren’t getting a mortgage you can’t manage to afford.
This is essential for a lender to accept and approve your application. It also helps us determine which mortgage product is most suitable for your situation.
A Multiple Listing Service (MLS) listing is a short document that details a for sale property.
A copy of the MLS listing of the home you plan to purchase is a requirement, either an online or realtor copy is fine.
If you are buying your home on a private listing website (like propertyguys.com), provide that listing instead.
A MLS listing is a document to verify the property you’re buying is real and for sale. It’s a basic document to determine the mortgage amount that you require.
It’s a document that outlines the home you’re purchasing. Gives a lender a short summary of the home.
A property appraisal is an estimated value of a home, in this case for one you wish to purchase.
Most noteworthy the appraisal is not a document that you will provide but rather pay for, as a requirement from your lender. Appraisals ordered by a lender are not shared with you as it’s their document.
This document is a cost surrounding your mortgage. While the cost can vary depending upon the location and size of the property.
The cost of an appraisal starts around $350 and can go over $500 (plus tax).
An appraisal is a requirement by a lender so they have a reasonable idea of your home’s current market value.
They use this value to assess the home before they are willing to lend against your home.
A Purchase and Sale Agreement is the written agreement between the seller of a property and you (the buyer).
Simply it’s a contract that states your intention (as the buyer) to pay a specific amount by a set date.
The seller and you must both sign the document when you accept the offer.
It’s an essential document that details the transaction, the amount you are to pay for the property and when your mortgage funds are required.
Also an important document for the lender to verify accurate funding upon the date required. This is an essential of the purchase mortgage documents.
A void cheque is simply an unusable cheque that details your transit number and account number. It’s essential for a lender to deposit and withdraw funds from your account.
It’s an essential document that allows a lender to fund your mortgage. Also confirms the funds are in fact deposited to you, the mortgagor.
If you're self-employed we can help get you mortgage financing.
Feel free to send us an email with any questions you may have about the required documents for a first-time home buyer mortgage.
We'd be happy to help!
We have a variety of useful guides that are essential and helpful for all your mortgage needs and questions. We cover everything from basic mortgage concepts to the functions and components of a mortgage to in-depth mortgage guides and strategies.
We have a variety of informative and useful pages. Take advantage of the free resources we offer with convenient bookmarks for all your mortgage information needs.
We have a few excellent options to determine what you can afford to borrow. We offer an easy to use Mortgage Qualifier Calculator. Simply input the required information and let our calculator give you an idea of how much you can afford to borrow.
If you want to get the most accurate idea of how much you can afford to borrow, contact us or fill out our online mortgage pre-approval form.
To determine what you can afford get a mortgage pre-approval. Along with qualifying you for a mortgage amount, a pre-approval will also lock in an interest rate for 120 days.
There are a variety of mortgage types and purposes. Deciding on the best mortgage for you is essential to getting the most logical loan for your financial needs, goals and future.
If you don't know what you want or need in a mortgage, we can assess your finances and in consideration of your financial needs and goals, we'll provide the best mortgage and rate for you.
We can assess your situation and advise on a mortgage product that will meet your financial goals and needs into the future.
We can be contacted by phone, email or directly through our website. We do consultations through email, phone and meetings. To begin a consultation fill out a form pertaining to your mortgage needs.
We've been helping Canadians obtain financing at the best terms and rate for 30 years and we'd be happy to help you get the best mortgage.
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Nick and his staff were very efficient and helpful. Nick in my opinion went above and beyond what was required in arranging my new mortgage. This has been my experience over the past 25 years when dealing with Mortgage for Less and Nick specifically.
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I have used Mortage For Less for all my mortgages since purchasing my first home nearly 15 years ago. From our first experience Nick has always been amazing at providing advice and negotiating great deals, and we have been a loyal customers ever since. Nick also jumped in quickly to help us work out a line of credit through our mortgage when we inquired a few years ago, and he provides interesting updates on the market. I plan on sticking with Nick for as long as I own a home.
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What a pleasure it is to do business with Nick. I have used Nick as my mortgage broker several times now and wouldn't think of using anyone else. He is knowledgeable, professional and always timely on any questions or inquires I have. He makes you feel like you are a special customer through the entire process. Nick thanks again for all you expertise and making this a smooth transaction.
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