Being a first time home buyer in Toronto? It’s common to experience difficulties in getting finance but ultimately, it feels good to know that the door, through which you are entering, actually belongs to you and you have become owner of a new house. But before going to take any step, you should determine your budget and extent to which you can go.
A mortgage broker can help you in the best manner because they are capable of evaluating what will suit to you and how you can find solutions to your financial needs. The experience mortgage brokers will assist you in getting suitable mortgage rate according to your needs. We will also guide you about down payment and list down different things you could use as down payment.
For most of the first time buyers, down payment is the biggest issue as they were capable of meeting initial requirements of their lenders. They try to save a minimum of 5% in terms of purchase cost of their homes but are unable to make any effective step.
Here are a couple of facts one could use to become a reliable borrower:
- First of all HBP (Home Buyer’s Plan) can be helpful as it allows buyers to withdraw $25,000 each (i.e. $50,000 for a couple) without requiring to pay any tax from their RRSPs. In this case, lenders usually give a time frame of 15 years to pay back funds, so you should have to remember it and start planning.
- Home buyers can comfortably use gifts from their blood relatives or parent to make down payments. Don’t consider them a private debt because the person, who has given that gift, will verify that it is given as a gift and receiver is not required to pay back money.
- Don’t try to make a big move. Stat with small steps and search for an affordable property initially and once you find your dream land, don’t think to sale out your previous home instead, make it available for rent and consider it a leverage for your future.
- Some lenders even agree to provide cash back so that borrowers can use a certain amount of their mortgage as closing cost.
Also, mortgage brokers will let you know about different available first time home buyer Toronto programs. Some of them are:
Ontario land transfer tax rebate: You can comfortably ask for refunding an amount up to 2,000 USD in terms of land transfer tax payable while purchasing a property.
In order to qualify for this program, your record should not show ownership of any home or property, anywhere in the world.
Municipal land transfer tax rebate: While purchasing a property in Toronto, you can avail the municipal land transfer tax refund which is payable at the time of purchase of a home.
The HBTC (Home Buyer’s Tax Credit): You will be entitled to claim for a refund of up to 5,000 USD as tax credit while purchasing a new home. This will also entitle you for an amount of $750 as federal tax relief.