
First Time Buyers
What Every First Time Buyer Should
Know
| RULE #1 |
Forget what the lending institution determines you can
afford-- IT IS NOT IMPORTANT. |
| RULE #2 |
What is important? How much you can comfortably afford
to pay per month. |
| RULE #3 |
Does what you can afford to pay per month fit into what
you are allowed to pay per month by current lending guidelines? |
| RULE #4 |
You should also budget $2500-3000 for closing costs such
as land transfer tax,lawyers fees,CMHC/GE application fees and property tax adjustments.CMHC/GE
guidelines specify you must provide proof of at least 1.5% of the purchase price
available to cover these costs.If the funds are borrowed for the closing costs and
not covered under a cash back style of mortgage,CMHC requires that the borrowed funds
be treated as a loan for qualification purposes and that the amount is computed to
be paid over a one year term,irrespective of the actual repayment terms.This can
affect your qualification for a mortgage under this program as the payment to be
used for qualification on a house valued at $150-$250,000 would equate to $175-$300
for qualification purposes. |
| RULE #5 |
Make sure you have been pre-qualified with a mortgage
guaranteeing you rate protection of 90-120 days.Make sure your lenders has explained
all your options to you |
| RULE #6 |
There is no free lunch! if a mortgage offer looks too
good then there is probably a reason. Be careful of cash-back style mortgages. They
offer an incentive with a hidden cost that will (normally) not benefit you in the
long run when compared to other alternatives. |
| RULE #7 |
If possible, take advantage of the RSP home buyers plan.
It is the only time the government will give you something for nothing. Click here
for more information on that program. |
| RULE #8 |
Only a mortgage professional can give you the choice
of several institutions to deal with for your mortgage, and a multitude of mortgage
products. Choice + Options = Better Rates = Better Deal for You. |
If you would like to set up an appointment to discuss your own specific financing
situation, please feel free to email or contact us at 1-866-384-4855 ext 222
If you have a specific mortgage question that you would like answered, please go
to our information request
page. We will be glad to help you.
We can also process your mortgage application on-line for a purchase or refinance
almost anywhere in Canada. We are not fan's of on-line applications and prefer to
speak with a client in person. If you would like to have a one-on-one chat about
a specific situation,we can set up a time tochat by phone. Simply email us with your
preference for calling you at work or at home.

RSP Home Buyer
RSP New Homebuyers Incentive:
The Best Gift the Government Will Ever Give
You and Probably the Only One!
To Qualify
- You must not have owned, or have lived with a spouse
who owned a home, in the preceeding five years .
- You must have paid income tax on earned income in
the year
- You have an RSP carry forward contribution limit.
- You are not required to currently have RSP'S
- You must have liquid assets (cash, bonds, stocks,
gift monies) equal to, or greater than, the refund you will receive under the program.
- Monies must remain in the RSP for a minimum of 90
days, so your purchase must close 91 days after you have placed your monies in an
rsp.
To Proceed You Require
- A copy of your Revenue Canada "notice of assessment"
from the most recent tax filing year.
- Make an appointment with us to determine your eligibility
and the approximate amount of incentive you will receive. As an example, a home buyer
with a gross taxable income of $50,000 and an RSP carry forward limit of $10,000
could receive up to $4200 in tax refund. These funds are available to you to with
as you wish-pay off bills, furniture, appliances...whatever .
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