First-Time Home Buyer
When it comes to purchasing your first home it can be incredibly stressful, whether you're doing it on your own, with your spouse, or with family. Raptor Financial Group has helped many first time home buyers achieve their dream of owning a home. There are many government programs available to homebuyers, including:
First-time home buyers' incentive
RRSP home buyers' plan (HBP)
5% down payment program*
HST new housing rebate
Land transfer tax rebates
Minimum down payment:
5% down payment is available for homes up to $500,000 purchase price.
Homebuyers will have to put 10% "on the portion" of the price over $500,000-$999,999.
Any home over or equal to $1,000,000 will require a minimum of 20% down
For example: On a purchase price of $800,000, minimum down payment will be calculated as below:
5% on the first $500,000 = $25,000
10% on the next $300,000 = $30,000
A total of $25,000 + $30,000 = $55,000
Is the ability to shift the mortgage from your current property to your new property. If you plan to live in the home for more than five years, you do not need a portability option but, sometimes life does not go as planned, and try not to ignore the portability option altogether.
Offer cheaper rates in exchange for smaller or no prepayment privileges, bigger prepayment penalties, and/or a restriction on refinancing with other lenders before your renewal date. This would be a good option for you, if you don’t plan on moving, refinancing, or making prepayments in the upcoming years of your term which is often five years.
Most first-time buyers opt for a 5-year fixed-rate because they cannot afford an interest risk. But if you consider yourself financially stable, you can get great credit and save more of your income every month, by considering shorter fixed terms and different rates. In our low-rate environment, they’ll give you possible extra savings.