It is an exciting time being a first-time homebuyer, but at the same time, it can also be nerve-racking because of the information and options available to choose from. It is imperative to do your due diligence before choosing what kind of house you wish to purchase so that you are getting the best deal possible as a first-time homebuyer. Get in touch with our team today to find out more information on being a first-time homebuyer mortgage in Markham.
Below-mentioned is a few things to keep in mind for a first-time homebuyer in Markham:
- As a first-time homebuyer, you are allowed to put in as little as 5% for a down payment. However, if you are providing a down payment of less than 20%, you are required to obtain mortgage default insurance, which is also commonly called Canadian Mortgage and Housing Corporation (CMHC) insurance. This serves as insurance in the event the borrower is struggling to make their monthly payments. The higher the down payment amount, the less your CMHC insurance payments will be. Additionally, getting an insurable mortgage can also help you get approved for the lowest mortgage rates.
- If you have a retirement savings account, you might be eligible for the RRSP Home Buyer’s Plan. It allows you to take up to $25,000 out of your RRSP which is tax-free to help finance the purchase of your first house. To find out more details, please do not hesitate to reach out to our team.
What is needed to obtain a mortgage for a first-time homebuyer?
- Full-time employment proof of stable income
- Good credit score
- Filling out the homebuyer mortgage application form.
- Verifiable down payment of a minimum of 5% of the purchase price of the property
Tax credits for first-time homebuyers
Because you are purchasing a home for the very first time, you may have access to several tax breaks, including the first-time homebuyer’s tax credit. This is usually claimed on your annual tax return, and in most provinces, the buyer can also claim for a land transfer tax rebate. Additionally, first-time homebuyers can take advantage of things such as tax-sheltered savings using what is known as the home buyer’s plan. This gives you the chance to withdraw from your tax-free RRSP savings to purchase the house. There is also a wide range of government programs available to take the stress of purchasing your very first home. In addition, the tax credits mentioned above and the home buyer’s plan can also include things like the GST/HST new housing rebate.
If you are a first-time homebuyer in Markham and are looking for a reputable mortgage company in the region, you cannot go wrong with ABC MORTGAGES. Their experience in this line of business is second-to-none, and their staff are extremely professional and friendly. Give us a call today at 1-800-820-5188 to schedule a consultation or for more information about our mortgage services.