If you are looking to buy a home in Ontario, you've come to the right place! Serving Ontario and the GTA for almost 20 years, Canadalend.com has become one of the largest and most used brokerages in the province.
We help clients with all types of income and credit to secure mortgages for the home of their dreams. We are used to scouring the market for the best deals based on your unique situation.
Our unique access to large pools of banks, credit unions, and private lenders ensures that the competition is high for your business. When the banks and private lenders compete, you will always win!
What do I need to know about purchasing a home?
Mortgage Options
There are two options that lenders use to calculate interest rates: fixed and variable.
Fixed rates work by keeping the interest rate the same for a period of time. These are best if you want certainty over how much your mortgage is likely to cost every month.
Variable rates fluctuate depending on what’s happening with the economy, as they generally move up and down based on the Bank of Canada Policy Rate. When rates go up, your monthly payments rise accordingly, while your mortgage gets less expensive if they fall.
Amortization and Mortgage Terms
Amortization is the length of time it takes for you to pay off the full amount of your mortgage.
To pay off your mortgage, you must agree to what are called Mortgage Terms. Your mortgage terms include everything your mortgage contract outlines, including rates, types, and payments.
These terms need to be renewed, so it usually takes multiple terms to fulfill your amortization agreement.
Mortgage Types
There are two types of mortgages that you can get – open and closed.
With an open mortgage, you can pay extra money (without any penalties) in order to pay off the balance of your mortgage quicker, as well as the ability to renegotiate your Term before it is up.
A closed mortgage limits the amount of extra money you can pay on top of your usual payments (without a penalty), but is great for budgeting. Your payment never changes, and it is usually at a better interest rate than an Open mortgage.
If this sounds complicated, don’t worry. The experts at Canadalend can explain it all in simple and clear terms during a free consultation.
Down Payment and Other Costs
To avoid extra insurance costs from the CMHC, one should have a down payment of at least 20% of the appraised value of the home. Not only will the mortgage amount be smaller, but your terms tend to be more favourable as well.
It might take a little longer to save, but in the end, you will save thousands of dollars. These savings can be put towards covering the closing costs as well as the land transfer tax that is necessary to finalize your home purchase.
How Do I Qualify for the First-Time Home Buyer Plan?
To qualify for a first-home buyer's plan, you should:
- Be a Canadian resident when withdrawing funds from the registered government plans to use towards your first home purchase.
- Not (at any time within the current calendar year/preceding four calendar years) lived in the home currently or jointly owned. It also cannot be jointly owned or owned by your common-law partner or spouse.
People can regain their first-time home buyer status if their common-law relationship or marriage breaks down, provided they have separate residences and have been separated for 90 days. This is unless they begin to reside in a new principal home with a new partner or spouse during this time.
Programs for First-Time Home Buyers in Ontario
These programs help make ownership affordable for qualifying homeowners.
Home Buyer’s Plan (HBP)
The Government of Canada helps first-time home buyers in purchasing a home. Eligible people can withdraw $35,000 maximum from RRSPs towards their home’s down payment. If you buy a home with another individual, each person can withdraw from individual RRSPs for a combined $70,000.
Withdrawals are tax-free, providing you pay it back within 15 years.
First-Time Home Buyers’ Tax Credit (HBTC)
The HBTC offers a $750 non-refundable tax credit for qualifying homes. They calculated it by multiplying $5,000 by the lowest personal income tax rebate.
Land Transfer Tax Refund
Homeowners can receive a partial or full refund on payable land transfer taxes. Refunds apply to resale and newly constructed residences bought after December 13, 2007.
Ontario’s Land Transfer Tax Rebate
Qualifying first-time home buyers can receive a $4,000 rebate for the provincial land transfer tax refund. This refund is for homes over $368,000 and is unavailable for homes under this value.
For married individuals, you must account for your spouse's property history because it could affect eligibility. If they individually have a home while married, then neither person is eligible for the refund. You can claim a partial refund if the property was inherited or bought before marriage.
CMHC Green Home Program
CMHC provides partial refunds on the price of mortgage home insurance. Homeowners can build, buy, or renovate their homes for energy efficiency and qualify for refunds up to 25% of their mortgage insurance premium.
Ontario Renovates Program
The Ontario Renovates Program gives financial assistance to disabled persons and low-income seniors to conduct repairs and to modify accessibility necessary to support independent living.
It assists up to $20,000 with ten-year forgivable loans ($15,000) for accessibility modifications or repairs and grants of $5,000 for accessibility-only alterations.
Affordable Home Ownership Program
This program strives to help low to moderate-income renters buy affordable housing. It assists with down payments via forgivable loans. The program frees up rental units and encourages developers to establish more affordable housing and increase demand.
We offer a range of solutions for all your home mortgage needs
With our years of experience, we’ve seen it all, so we’re used to fine-tuning our services to unique financial needs. We understand that for most people, their home is the most valuable asset they will ever own, so it’s vitally important that they get the service they need.
At Canadalend.com, we are dedicated to providing 5-star customer service. Get in touch with us, and a lending specialist will help set up an appointment for a free personal consultation. We will help you review your mortgage options and find the solution that fits your needs!
Email us at info@canadalend.com to discuss your options with one of our mortgage specialists. You can also contact us at 1-844-586-0710 or reach out online. We will discuss your best options and available rebates pertinent to your situation.