First Time Home Buyers – Depending on a number of criteria, you may qualify to obtain a mortgage with no money down, and possibly even get cash back! The cash back can be used to make upgrades to your new home, buy furniture or pay down credit card bills. If you have money in RRSP’s, you can use it for a down payment on a home without penalty.
Self-Employed – For individuals that are self-employed, getting a mortgage isn’t always easy. We have programs available that are tailored to self-employed individuals. These programs generally have different requirements for proof of income than conventional mortgage programs. If your credit is good, you may qualify for as little as 5% down! Most lenders will require that you have been self-employed for more than two years and be able to show that you have enough income or cash-flow to support the payments.
Good Credit – If you have good credit, you will be in the driver’s seat when it comes to great interest rates!
Bad Credit – If your credit has suffered in the past with late payments, collections or even a bankruptcy, many lenders are still willing to lend money for a home. The interest rates will be typically higher, but it will give you the opportunity to purchase your own home and start building equity. For more information on buying a home or refinancing with past credit problems, click here.
Pre-Approved Mortgages – A pre-approved mortgage is one where you obtain your approval and guarantees the rate BEFORE you start seriously shopping for a home. This feature is important as it allows you to know you much you can spend on a home. Also, in today’s hot real estate market, many homes are sold within hours or days. Taking time to ensure that you qualify for the financing can mean the difference between getting the house or losing it to another more qualified buyer.
In Canada, if you are buying a home with less than 25% down, you will be subject to an insurance fee charged by the CMHC or Genworth. The fee may be added to the mortgage or paid up front. Here’s a breakdown of the fees.
Up to & including 80% financing 1.00% of purchase price
Up to & including 85% financing 1.75% of purchase price
Up to & including 90% financing 2.00% of purchase price
Up to & including 95% financing 2.75% of purchase price