Home Purchase Loans/Mortgage
Canadians make the decision to become a first time home buyer for a variety reasons. Many people want the privacy of having their own home. Others are attracted by the independence and freedom of being able to make their own decorating decisions, to have a garden, to add additions for growing families. The purchase of a home allows first time home buyers to put down roots and start building financial security. We understand that the reasons why Canadians decide to become a first time home buyer are as vast as the country itself.
One reason to consider becoming a first time home buyer in Canada is that homes are appreciating quickly and purchasing a home can help build your net worth. As an added bonus, your first home, since it will be your principal residence, will not be accessed a capital gains tax. This makes owning your own home a very attractive proposition.
Another reason to purchase a home is it builds equity that you can use to leverage other buying decisions down the road. Every month part of your payment gets applied to the principal of your loan and that creates equity. That equity can be used to start a business, to finance an education, to make home improvements, etc., providing you with a lifetime of options that renters simply do not have.
Deciding to become a first time home buyer in Canada makes sense, but many people still hesitate, wondering whether they have enough financial resources to make a purchase. Most lending institutions will require at least five percent down to make a loan. Ideally, of course, you would put down even more. As long as there are no other purchases that require the use of your savings; however, having that five percent available is enough to let you begin to consider becoming a first time home buyer.
In addition, many first time homebuyers in Canada are also eligible for the Home Buyer's Plan. This plan allows first time home buyers in Canada to use up to $25,000 of their RRSP to purchase a home. The money is considered tax-free as long as it is paid back within 15 years. This puts home ownership in reach of even those without a healthy savings account. At Mortgage Broker Whitby we will help you qualify for any mortgage.
So, if you have not started the mortgage pre-qualification process, now is the time. This will let you determine how large a mortgage you are qualified to have, and it will also allow you extra time to look around for the best canada mortgage rates, terms and options, prior to finding that dream house.
One reason to consider becoming a first time home buyer in Canada is that homes are appreciating quickly and purchasing a home can help build your net worth. As an added bonus, your first home, since it will be your principal residence, will not be accessed a capital gains tax. This makes owning your own home a very attractive proposition.
Another reason to purchase a home is it builds equity that you can use to leverage other buying decisions down the road. Every month part of your payment gets applied to the principal of your loan and that creates equity. That equity can be used to start a business, to finance an education, to make home improvements, etc., providing you with a lifetime of options that renters simply do not have.
Deciding to become a first time home buyer in Canada makes sense, but many people still hesitate, wondering whether they have enough financial resources to make a purchase. Most lending institutions will require at least five percent down to make a loan. Ideally, of course, you would put down even more. As long as there are no other purchases that require the use of your savings; however, having that five percent available is enough to let you begin to consider becoming a first time home buyer.
In addition, many first time homebuyers in Canada are also eligible for the Home Buyer's Plan. This plan allows first time home buyers in Canada to use up to $25,000 of their RRSP to purchase a home. The money is considered tax-free as long as it is paid back within 15 years. This puts home ownership in reach of even those without a healthy savings account. At Mortgage Broker Whitby we will help you qualify for any mortgage.
So, if you have not started the mortgage pre-qualification process, now is the time. This will let you determine how large a mortgage you are qualified to have, and it will also allow you extra time to look around for the best canada mortgage rates, terms and options, prior to finding that dream house.