First Time Home Buyers

First-Time Homebuyers

Ontario Equity has a vast network of solicitors, appraisers and specialists that know the first-time homebuyer process. This network combined with our knowledge of the mortgage market will allow for a speedy stress-free home buying experience.

Providing the lowest mortgage rate in Canada is one thing, explaining the entire home purchasing process is another of many value added services we provide. We help the first-time homebuyer in every step of the mortgage process:

• The Pre-Approval
  Find out how much and what rate you qualify for, most Ontario Equity pre-approvals come with a 120 day rate hold.
• The Appraisal
  Ontario Equity has a great network of appraisers that will not only perform a timely appraisal they offer special discounts to our clients!
• Purchasing the Home
  Make sure that you include a condition day; give yourself at least one week to finalize all financing. Using this time to have a home inspection is a great idea!
• The Paperwork
  Your Ontario Equity consultant will explain in detail all of the paperwork that the bank/lender will require.
• Lawyer
  At this time all paperwork will be sent to the solicitor of your choice.

Each mortgage application is unique; making it a smooth and seamless process is what Ontario Equity does best. Fill out our easy to use online mortgage application and let us truly make owning a home the experience of a life time!!

When you buy a home, you will first need money for a down payment. The amount of the down payment can vary, but generally you should make a down payment that equals at least 10% percent of the purchase price. First-time homebuyers may go as low as 5% or, if you have an excellent credit history, there is also a zero-down mortgage option available. You should also consider starting off small making sure you do not over-extend your payments.

If you are a first time home buyer, congratulations! A home is generally considered the largest investment most people will make in their life.

The first step is to find out how much you can afford. Our mortgage calculator can help. Before it’s time to go looking for a home be sure to get a pre-approval. This will allow you to secure a great rate as well as establish the confidence that when you do find your home, you will have the financing in place. If you have any questions about buying your first home or would like to obtain a pre-approval, feel free to call, email or submit an application online.

Below is a list of great programs, rebates and tax credits available to help reduce some of the costs of buying your first home.

First Time Home Buyers Programs

• RRSP Home Buyers Plan
• Ontario Land Transfer Tax Credit
• Toronto Municipal Land Transfer Tax Credit
• ’0%’ Down Mortgages (via the 5% cash back mortgage)

First Time Home Buyers RRSP Plan (up to $25,000)

The First Time Home Buyers RRSP Plan (HBP) allows first time home buyers to withdraw up to $25,000 from RRSPs to buy or build a home for yourself or for a related person with a disability. The withdrawn amount must be repaid within 15 years, subject to a minimum annual repayment that is 1/15 of the amount withdrawn. If the full $25,000 is withdrawn, the minimum annual repayment is $1,667. If less than the minimum is repaid in any particular year, the balance is added to the taxpayer’s income. To qualify for the Home Buyers Plan, an individual must not have not owned a home in the previous 5 years.

Follow the link for more information on the RRSP Home Buyers Plan.

First Time Home Buyers Ontario Land Transfer Tax Credit (up to $2000)

The Land Transfer Tax Credit is a refund of the cost of the provinces land transfer tax up to a maximum of $2,000. This will allow first time home buyers to purchase a home up to $227,500 without having to pay any land transfer fee. Any amount higher than $227,500 is taxed a rate of approximately 1.5%. To qualify the property must be owner occupied. The first time home purchaser may claim the full maximum amount or a proportion of the maximum refund amount. To qualify for the Land Transfer Tax Credit, an individual, their spouse or common law partner must not have not owned a home in the previous 5 years. The refund can be given instantly at the lawyers office but advise the lawyer prior to the closing date if you qualify for the rebate

The refund amount is reduced when one or more of the transferees are not a first time home buyer. The reduction will be proportionate to the interest in land acquired by the individuals who are not first time home purchasers. For example, a parent who is not a first time home buyer and child who is a first time home purchaser, purchase a home with equal 50/50 interests, the child may claim 50% of the land transfer tax refund. The child’s claim cannot exceed 50% of the maximum allowable refund, i.e., 50% of $2,000.

Click the link for more information on the Ontario Land Transfer Tax Credit.

Follow the link for more information on the Ontario Land Transfer Tax Rate.

First Time Home Buyers Toronto Land Transfer Tax Rebate (up to $3725)

First time home buyers of a newly constructed or re-sale residential property qualify for the Toronto Land Transfer Tax Rebate. The maximum allowable rebate is $3,725.00. This allows first time home buyers in Toronto to purchase a home valued as high at $400,000 without having to pay a Toronto land transfer tax. Any additional amount above $400,000 will be taxed at a rate of 2%. The property must be owner occupied.

If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically through Teraview version 6.0 software when he/she registers your transfer/deed.

More information on the Toronto Land Transfer Tax Rebate and the Toronto land transfer tax rate can be found on the City of Toronto website.

’0%’ Down Payment

Although 0% mortgages are no longer insured by CMHC, 5% down payment mortgages with a 5% cash back component are. CMHC also permits down payments to come from borrowed sources (Visa, Line of Credit, family) provided this is disclosed to the lender.

Used in conjunction a home buyer can borrow their down payment and obtain a 5% cash back mortgage allowing them to pay off the borrowed money once the home closes. 5% cash back mortgages are available from several lenders and will usually carry a premium charge of 1.5% or higher over traditional mortgages.

For more information on these mortgages, see no money down mortgages for more information or call today or apply online.