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
Effective October 27, 2006, Genworth introduced true 100% financing allowing
purchasers with no down payment to purchase a home. The qualifications are very simple: you must have a
good job, good credit and enough money for closing costs.
More information - Click Here
RULE #5
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 #6
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 #7
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 #8
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 #9
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 .
