First Time Home Buyers2018-10-23T13:25:45+00:00

Pre-Approvals and First Time Home Buyers

Have you asked yourself the most important question? If you can afford to purchase.

Before anything look into getting a pre-approval. So when you do find your dream home you will be secure with a great interest rate. Have that confidence to know that your financing is all put in place. Please check us out at MORTGAGE CALCULATOR tools.

DOWN-PAYMENT

DOWN-PAYMENT – one of the largest challenges to home ownership for many first-time buyers. Here at GTA BEST MORTGAGE we strive to make sure that we provide you with all the options available for your down-payment needs. Providing you with quality service and great customer support to meet your satisfaction. In most of the cases, you’ll need to have a minimum of 5% of the purchase price of your home. But there are some programs and tips GTA BEST MORTGAGE can offer to give your down payment a boost – to get you settled into your home faster:

No/low down payment. Depending on the location of the property you are purchasing and if you have an excellent credit score and stable income, you may qualify to purchase a property with no down payment using a “cash back” mortgage. All you need to provide is sufficient funds.

  1. to cover your closing costs and moving expenses (about 1.5% of the purchase price).
  2. Borrowed Down Payment. This is slightly different to a cash back in that you can borrow your down payment from a line of credit, credit card or personal loan. With good credit and stable income, your interest rate will be fully discounted, unlike the cash back mortgage
  3. Home Buyers’ Plan (HBP). This allows first-time home buyers, if you and/or your spouse have not owned/occupied a home as your main residence in the last 4 years. As well as if you’re buying or building a home for a disabled person who is related to you, to withdraw up to $25,000 PER BUYER, from an RRSP. This method is used to purchase a home without having to pay tax on the withdrawal but you’ll have up to 15 years to pay it back to your RSP with no interest rate. Remember, the $25,000 per buyer does not need to be used solely for the down payment – it can be used for closing costs, paying off debt, moving expenses, furniture, as well as vacation or honeymoon expenses!
  4. Gifted Down Payment: A financial gift from a parent or close relative can be used as a down payment. Your relative(s) will need to confirm, in a written document, that the funds are a gift.
  5. Government Grants: Some municipalities provide down-payment assistance grants – a forgivable interest free lump sum amount to be used for the sole purpose of down payment to purchase a home
  6. If a municipality decides to offer this program, it would be built into their budget, and they allocate a certain dollar amount – once the total budgeted grant amount is used, the program immediately ceases. These programs are typically for those with low or moderate income and must go through a long process to qualify. These vary in guidelines based on the municipality that offers this program; call me to find out if there is one available to you in the area you are looking to purchase in.
  7. Start Small: Of course the other option is to start small. If your dream home is out of reach, aim for a starter home. Use today’s low interest rates to start working your way down to your first mortgage, then watch for the opportunity to move up to the home of your dreams – using the equity and credit rating you’ve been building. With the help of GTA BEST MORTGAGE, nothing is impossible!

Many people come up with ways to even keep the first home as a rental property, and leverage that first purchase into a nest egg for the future. In Ontario, First Time Home Buyer incentives and programs may be available for you such as: Ontario Land Transfer Tax Rebate -You and/or your significant other can claim a refund of up to $2,000 of your land transfer tax payable at the time of purchase of your property. To qualify as a first-time home buyer under this program please contact your lawyer or local provincial government office for more details. With the help of GTA BEST MORTGAGE’s support team, we can help set you in the right direction and provide you all the advice you need in order to have a stress free experience!

Toronto Municipal Land Transfer Tax Rebate – If you are buying in the City of Toronto, you are also entitled to a refund of the municipal land transfer tax payable at the time you buy your first home on the first $400,000 of purchase price. Please contact your lawyer or local Municipal Government Office.

The First-time Home Buyer’s Tax Credit (HBTC) – You and/or your significant other are also entitled to claim up to $5,000 in total as a tax credit when you purchase your first home. This entitles you to up to $750 in federal tax relief on your next tax return which could result in an income tax refund! Ask GTA BEST MORTAGE’s support team for more information.

Purchasing a home is one of the major decision in your life. It’s probably one of the most costly investments you’ve made in your life so far. Here at GTA BEST MORTGAGE our agents will become your financial consultants and will educate you and will walk you through this major step towards you FIRST DREAM HOME together.

What’s Next?

*Subject to approved credit, income verification and meeting lending credit granting criterea. Applies to residential mortgages only and some conditions may apply. O.A.C., E.O.E All content is subject to change without notice.
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