First Time Home Buyers
If you a first time home buyer, you will want to get pre-approved for a first time buyers mortgage before you start looking at homes. A pre-approval for first time home buyers is a must in the fast pace real estate market in Ontario. A mortgage pre-approval will determine not only first time home buyers, but those who are already in the market the maximum amount you will be approved for. It will also hold the interest rate for you while you shop, insuring that you receive the best mortgage rates possible when it comes time to make your offer.
Down Payment for First Time Mortgage
First time home buyers will need a down payment for your first time mortgage and Peter can help you look at your options and requirements. If you are taking advantage of the Home Buyers Plan through Revenue Canada to utilize your RRSP, you should make sure that you have notified your financial advisor about your plans to purchase. You will then be required to fill out a T1036 form from Revenue Canada. Your financial advisor or tax office can supply you with this form. Receipt of your funds may take some time so it is important that you request your funds early on in your home buying process. For more information: http://yourmortgagedoctor.com/no-down-payment-mortgage/
If your down payment is coming in the form of a “Gift”, you will be required to supply proof in the form of a letter that states who is gifting you the money, what it will be used for.
If it is coming from a savings account, you will need to provide me with 90 days history in the form of bank statements. When using online banking to print forms, make sure your name is clearly visable, proving that you are the owner of that account. Additionally, be prepared to explain any larger deposits and possibly provide proof. This is to weed out borrowed funds or funds from illegal sources. For further information about
Land transfer tax Toronto , see our land transfer tax Toronto page.
Homebuyer 95 Mortgage Insurance Program
The Genworth Homebuyer 95 program offers qualified Canadians an opportunity to own a home with as little as 5% down payment or refinance their existing home up to 95% LTV.
Acceptable loan purpose
* Purchase transactions
Loan-to-value ratio limits
* 1 – 2 units: 95% LTV
* 3 – 4 units: 90% LTV
Maximum Loan Amounts
* No Maximum
* Maximum 4 units
* New construction or existing properties
* Property must meet the following criteria (3 & 4 units):
o Municipal zoning
o Fully self-contained units
o Remaining property (economic) life must equal or exceed the amortization of the loan
o Must be located in a major centre with a viable investor market
Terms/qualifying interest rates
* Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
* For terms less than three years, the qualifying interest rate is the greater of three-year posted rate or contract rate
* For terms of three years or more, we use the contract rate
* LTV > 80%: Up to 25 years
* LTV ≤ 80%: Up to 30 years