It’s true that every person in the world dreams to have his/her own home. Canadians face dilemmas from a lot of angles when it comes to home ownership. For example, the question of what and where to start to buy their own home troubles them all. Of course the next best thing is the mortgage rate.
Since you might have set your budget to buy the home of your dreams, it is still vital to look for great deals. You need to know how to finance the purchase of a home, mortgage down payment options and even savings for your down payment.
What All You Need To Look For Your Mortgage?
- Explore your mortgage options from as many lenders as possible
- Research all about the chosen rate option
- Consult and hire a Mortgage Broker
- Get pre-approved safely
Mortgage marketplace in Canada is highly competitive. Banks act as the prime target for your home mortgage and are considered as one of the most reliable source. But today’s market offers another good source for your home loan i.e. independent mortgage broker.
Mortgage broker is a person, who works as intermediate between lender and borrower. And receive the commission from the lender once a loan is approved. In short, mortgage broker will provide you fair guidance of cheap interest rate from lenders like big banks or financial institutions.
Mortgage down Payment Option
Before you start house hunting, explore the market for the finance to procure a home. Research all about every source that provides you mortgage. Search out their best interest rates, terms & conditions as well as down payments. Thereafter, look out for the best source/lender who will lend money for your home. Last, but not the least, look for the mortgage broker who will help you negotiate with the chosen lender. Look how to pay back the mortgage amount in low rate?
So before selecting any options set your down payment first. As there are a number of mortgage down payment options, choose wisely. Canadians consider low down payments as the most reliable way to start mortgage. Select your down payment as you going to pay either weekly or at monthly bases. RRSP first time home buyers plan is the most trusted by Canadian residents. Here are some mortgage down payment options.
- Conventional Mortgage – Here, down payment of at least 20% is required to qualify. It can be chosen on either fixed or variable rate basic. It is known to be one of the cheapest ways to pay back the mortgage amount.
- Insured Mortgage – This is one of the most favorable options for most of the lenders in Canada. It is available for both new and resale homes. Generally, it’s 5% low than the conventional mortgage. Before you pay low down on payment mortgage, get insured first by submitting a potential default amount to the lender. Your down payment and interest on this amount is added to the principal amount of your mortgage.
- RRSP-Down Payment – First time home buyer can also look for the ‘Federal Government’s Home Buyer’s Plan’. They are qualified to use up to $25,000 RRSP savings per person for down payment on a home. This withdraw is not taxable if you repay within 15- year of time period.
A dedicated financial broker will help you in selecting the best mortgage plan, rates, terms and conditions. These days, with low interest rates in real estate market boosting confidence of Canadian citizens, hiring a broker is perhaps the best decision you can ever take.