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.

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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 Owning your new home
  • 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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