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Buying Your First Home Is Easy With Geo Mortgage Hub!

October 3, 2020 | Posted by: Ravi Thakur

Buying Your First Home Is Easy With Geo Mortgage Hub!

Being a first time home buyer is exciting, but can also be intimidating because of all of the information and options available to choose from. It is important to do enough research before deciding what home to purchase so that as a first time home buyer, you get the best deal possible on a mortgage for your new home.  

Here are a few important things that a first time home buyer should consider:

As a first time home buyer you are allowed to put as little as 5% for a down payment. However, any home buyer that is providing less than 20% as a down payment on their home is required to obtain mortgage default insurance which is also known as CMHC Insurance. This serves as insurance for the lender in the event that the borrower can no longer make their monthly payments. The higher your down payment, the less your CMHC insurance payments will be.

If you have a retirement savings account you might be eligible for the RRSP Home Buyers’ Plan. It allows you to take up to $35,000 out of your RRSP tax-free to help finance the purchase of your first home. Read our blog post on the Canadian First-Time Homebuyers Incentive for more information and detail about the program.

The First Time Home Buyers’ Tax Credit gives first time buyers that chance to regain some of the costs they paid in the purchase. It mostly applies to closing costs such as legal fees and inspections.

In certain provinces like Ontario, British Columbia, or Prince Edward Island, home buyers can qualify to get a rebate on some of the Land Transfer Tax they paid. Torontonians are eligible to get a rebate on top of the provincial allowance if they are a first time home buyer.  

At Geo Mortgage Hub, we know there are many great resources available to first time home buyers and we are determined to make sure you take advantage of them. Our trusted mortgage professionals will help you understand what you are eligible for and ensure that you get the most from your first home purchase.

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