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Home Loans For First Time Buyers
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So, You're Thinking Of Buying A Home!
Congratulations! It's a fantastic way to build equity, get tax breaks, and have a place to call your own. But before you jump in, you need to make sure you’re choosing the right loan or homebuyer program for you. We know buying a home is one of the most important investments you'll make in your life, and there are many factors to consider for your long-term financial stability.
If your credit is strong and you have a stable financial history, you may want to consider a conventional mortgage. They offer good terms and interest rates, but you must be able to make a down payment of 20% or more of the purchase price.
If you have saved for a smaller down payment, consider a high-ratio mortgage. These loans can be more than 80% of the property’s value. However, because they are riskier for banks, you will be required to pay additional mortgage insurance.
If you are not eligible for a typical loan, there are also private mortgage lenders. Private lenders can set their own conditions and fees. This lack of regulation means they can offer more flexibility in their products and terms, but their rates are much higher.
Government Home-Buying Programs
If you're a first-time homebuyer, it's normal to feel overwhelmed. You might be wondering how you can come up with the money for a down payment and closing costs. But there are a number of special programs specifically designed to help
someone like you, such the Canada's First-Time Home Buyer Incentive or the First-Time Home Buyer’s Tax Credit. There is also the Home Buyer's Plan (HBP), which allows you to borrow up to $35,000 from your Retirement Savings Plan tax-free.
Consider The Whole Picture...
When weighing each decision, it's important to think about what's best for you and your family. Your financial situation, credit history, desired location, and future prospects all need to be considered, as well as the particulars of each individual loan or program. Pay attention to the small print: some programs have lower initial costs but come with higher interest rates and fees. They may seem appealing at first, but can end up costing more over the long term.
Local Loans And Incentives
Did you know some provinces and cities may provide incentive for you to live there? For example, many provinces offer to reduce or eliminate the property transfer tax on your first home. And several smaller cities and townships offer loans of up to 10% of the property's purchase price, including forgivable loans if the home isn't sold within 20+ years.
Keep in mind that some loans and down payment programs require you to live in the home for a certain amount of time after buying. If you're not sure about your plans, you might want to go with something that gives you more flexibility.
There are several lenders and loans designed for people in certain professions, like physicians, surgeons, dentists, first responders, military personnel and veterans. With these loans, you might have to buy a home in a specific area.
Many people think home ownership is too far out of reach, but there are so many options designed to help you turn your dream into a reality!
Professional Mortgage Loans
Investing in your first home is a big deal! It's worth taking the time to find the mortgage that meets your needs. Talking to multiple lenders and asking lots of questions will help you figure out what is best for you. Many lenders specialize in working with first-time buyers and can offer helpful advice and guidance throughout the process. Feeling confident about your financial choices can make all the difference when it comes to buying your first home.
Dreams Really Do Come True!
Aaron Robinson and Sharon Gregresh
Sales Representative
Century 21 Masters
110 - 5 Giroux Rd, St. Albert, AB T8N 6J8
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