Are you purchasing?
With you every step of the way.
Are you are a first time home buyer, upgrading, down sizing, looking at a vacation property or second home, thinking about obtaining a rental property or new to Canada? I can help you through the entire process and provide you with resources to assist you in making an informed and educated decision. I will be with you every step of the way from pre-approval to possession date and beyond!
Are you a first time home buyer?
Being a first time buyer can be very intimidating and very exciting. I love first time home buyers!
I am here to help you navigate the process and assist you from your initial inquiry all the way to possession day and through lifetime of your mortgage. With a minimum of 5% down payment from savings, borrowed funds, RRSPs, First Home Savings Account or a gift from a family member I can get you on the road to homeownership. As a first time homebuyer you have a lot of incentives and rebates available to you and I can help navigate your options and the details involved with the process.
First Time Home Buyer Incentives & Rebates
First Home Savings Account (FHSA)
Starting April 1, 2023, first-time homebuyers will have a new savings tool to assist with saving for a down payment for their first home. The First Home Savings Account (FHSA) will offer prospective first-time buyers with the ability to save up to $40,000 tax-free.
Stipulations:
Must be a first-time home buyer
Must be at least 18 years old
Must be a Canadian resident
You must occupy the home for at least 1 year following the purchase and withdrawal
Contributions:
Maximum of $40,000 lifetime deposits
Maximum $8,000 annually
Carry forward ability for future tax years
You can transfer from a RRSP to a FHSA
Funds leftover after the withdrawal to be transferred to an RRSP
Withdrawals:
Not taxable
Must have an offer to purchase to buy or build by October 1 of the year following the withdrawal
You do not have to repay the funds like the Homebuyers Plan (RRSP withdrawal)
*The FHSA can be used in conjunction with the Homebuyers Plan (HBP) for a maximum housing contribution of $100,000
The Home Buyer’s Plan is a program under the Federal Government that allows a first time home buyer to withdraw from your Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home for yourself or a related person with a disability. All applicants can withdraw up to $60,000 each tax-free from your RRSPs to put towards the purchase of a qualifying home. Did you know… the Home Buyer’s Plan can be used if there has been a marital breakdown and you are looking for a new home for yourself!
The funds must be in your RRSP for at least 90 days before withdrawal for it to be eligible to be used for the HBP.
You have 15 years to repay the amount that was withdrawn. Remember to enter this information on your annual tax returns.
Not making the repayments could end up costing you money in income tax.
Home Buyer Plan
(HBP) using RRSP
Home Buyer
Tax Credit
You can claim $5,000 for the purchase of a qualifying home in 2021 or earlier and $10,000 in 2022 and subsequent years if both of the following apply:
You or your spouse or common-law partner acquired a qualifying home and;
You did not live in another home owned by you or your spouse or common-law partner in the year you acquired the home or in any of the four preceding years.
The Home Buyers’ Tax credit (HBTC) will provide a tax credit of up to $1,500 to eligible home buyers.
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Key Terms
High Ratio Mortgage
A mortgage where a borrower has a down payment of less than 20% of the purchase price of the home they are buying. This is also called an insured mortgage as mortgage insurance premiums are charged on the mortgage by one of three mortgage insurance companies. The maximum amortization on an insured mortgage is 25 years.
Conventional Mortgage
A mortgage where the borrower has a down payment of 20% or more of the purchase price of the home they are buying. There are no mortgage insurance premiums charged on this mortgage. A purchase price over $1 million is also a conventional mortgage.
Home Equity Line of Credit (HELOC)
A revolving line of credit that is secured against your home. A HELOC cannot exceed 65% of your home’s value and when combined with a mortgage component, the maximum lending value is 80% of the homes market value. The interest rate on a HELOC is generally much lower than a traditional line of credit. A HELOC is not available on high ratio mortgages.
Other Incentives & Rebates
Energy Efficient
Rebates
The 3 mortgage insurers offer premium refunds of up to 25% when you buy or build an energy efficient home, or when you buy and existing home and make energy-saving renovations. Each insurer has different programs and you can check out each one below:
New To Canada
Extensive New to Canada products available with as little as 5% down! We can finance both non-permanent residents pending your work or student visa has been in place less then 5 years, or new permanent residents with limited to no established Canadian credit.
If you are new to Canada, whether you have been in the country for less than 6 months, 12 months or 5 years, we have solutions for you under a Newcomers to Canada Financing Program. Whether you are a permanent resident, on a work permit, or a temporary resident, there are different options available and different banks that are happy to entertain the mortgage.
Get in touch to learn the requirements to qualify for a New To Canada mortgage!
Purchase Plus Improvements
Buy Now with a Renovation Allowance!
Purchase Plus Improvements is for consumers looking to purchase a home that has great potential but needs a little TLC. This program allows you to make improvements immediately after taking possession of your new home and have the costs rolled into one easy-to-manage mortgage.
Don’t shy away from that fixer-upper… A Purchase Plus Improvements Mortgage allows qualified purchasers to buy a home or condo and include a Renovation Allowance, even with as little as 5% down.
Let us maximize your home buying potential by taking advantage of programs such as the purchase plus improvements program.
Vacation / Second Property
With lifestyle demands in a growing or busy family, a second home or vacation property for those weekend getaways can be very appealing and easy to approve. With as little as 5% down in some cases. This can not be confused with investment or income properties and these second homes if being purchased out of the city for a vacation property must have year round access.
Get in touch to learn more!
Self- Employed
MMG has some of the most creative options for self employed individuals looking for maximum financing. Most self-employed applicants claim little income on their personal income tax returns. This can mean that your maximum mortgage qualification is reduced. MMG has numerous options available for STATED INCOME qualifying. I can use your combined personal and business income for qualification; you can self-declare your own income, OR, show us 6-12 months of bank statements and we will use your total deposits and call it your income!
Let’s do it!