2015 Mortgage Guide
Get Clients Pre-Approved
A pre-approved mortgage puts your financing in place before you make an offer on a home. With a pre-approved mortgage, you’ll be able to make a firm offer on the home of your choice.
A pre-approval can hold a rate for up to 120 days on fixed terms – guaranteeing you the best possible rate.
Financing For As Little As 5% Down
This program is designed for those who don’t have 20% set aside for a down payment.
The 5% down payment is for principal residences only (cannot be a rental property).
Under the 5% down payment program, you must provide proof of down payment plus 1.5% of the purchasing price for closing costs.
You can select from a wide variety of payment terms.
Incentive Programs
Under the 2009 Federal budget, money has been allocated for purchasers who wish to make their first purchase or renovate existing homes.
First-time buyers can take advantage of a tax rebate to assist with closing costs or withdraw up to $25,000 from their RRSPs for a down payment – tax and interest-free.
A home renovation credit or ecoENERGY Retrofit – Home grant will enable you to renovate – even new purchases!
RRSP Program – First-Time Buyers
Maximum $25,000 tax-free withdrawal for each participant from his/her own RRSP.
Must be first-time buyer – have not owned a home that has been used as a principal residence within the last 5 years (unless in cases of disability)
Must intend to occupy the home as a principal residence within 1 year.
Minimum repayment schedule is 15 equal annual installments. This schedule can be accelerated, starting within the first 2 years after the withdrawal is made.
The funds to be withdrawn must have been invested into the RRSP for a minimum of 90 days prior to withdrawal.
Programs for Self-Employed Program & Commissioned Sales Borrowers
There are many programs to make it easier for self-employed people with unverifiable income to qualify for a mortgage with a low down payment.
Purchasers must have a minimum of 5%, and be able to verify these funds are from their own resources.
Purchasers must be able to demonstrate that they have been self-employed for a minimum of 2 years.
Self-employed purchasers must provide the most recent tax year’s Income Tax Notice of Assessment confirming that hey have filed income tax returns and have no personal income tax arrears owing.
Self-employed purchasers must have a very good credit rating. Minimum credit scores apply for different down payment scenarios.
Closing Costs
Additional costs involved when you finance the purchase of a home, over and above the minimum down payment, include:
Appraisal $350
Home Inspection $350
(approximate)
Legal Fees $900
(approximate)
TOTAL: $1,600
We at GLM Mortgage Group look forward to help you get into the home of your choice in 2015!
