Are you in search of the best options for first-time home buyer mortgage? Being a first-time buyer may be both an exciting and stressful experience. When shopping for a mortgage and purchasing your first house, there are a lot of factors to take into account. The process of buying and financing a property can be entirely hassle-free for those having the right knowledge about the mortgage process, its requirements, eligibility, and benefits.
A first time home buyer mortgage in Surrey is a loan granted to a qualified buyer so he/she can buy their first home. Lenders evaluate your financial status and consider a number of factors, including:
- Your financial situation, including your debts and assets
- Down payment you are contributing to your purchase
- The property’s cost.
- Mortgage interest rates
- Time period do you wish to pay off the mortgage
You will need to borrow less money from the bank if you put down a larger amount on your first time buyer mortgage. In addition to increasing your chances of being approved for a mortgage, this also provides you with additional choices for the kind of mortgage that best fits your financial requirements.
Options for first homebuyers
For individuals purchasing their first house, the Canadian government provides a number of national programs. If you or your common-law spouse has never bought a home or investment property, you will be regarded as a first-time home buyer. Some programs have exclusions, so if you’ve owned a property before but just had a marriage or end of common-law partnership, you can be regarded as a first-time home buyer.
Canadian citizens, permanent residents, and non-permanent residents who are permitted to work in Canada may all be eligible for these programs.
- The Home Buyers’ Plan: Those who wish to buy a home can take out up to $60,000 tax-free from their registered retirement savings plan (RRSP). Details of the RRSP Home Buyers’ Plan include:
- Repayment of the funds must occur within 15 years.
- Funds from your RRSP must remain in your account for a minimum of ninety days.
- The deadline to purchase or construct your home is October 1st of the year after your withdrawal.
- The Home Buyers’ Tax Credit: For first-time homebuyers, the HBTC is a non-refundable income tax credit of up to $10,000. This results in a tax refund of $1,500. Home Buyers’ Tax Credit doesn’t start until your first tax return following a home purchase.
- The First Home Savings Account: This account, which functions somewhat like a TFSA and somewhat like an RRSP, is where you can direct your savings for a new house. Details of the First Home Savings Account program include:
- Tax deductions apply to deposits.
- You can deposit up to $8,000 into your FHSA annually, with a $40,000 maximum. You can deduct deposits from your taxes.
- Your deposits can be invested. Any profits are exempt from taxes.
- The account can be used to cover closing costs and a down payment.
- Provincial Assistance Programs for First-time Home Buyers: Local and provincial first-time home buyer programs, such as those that provide interest-free loans for a down payment, might be available to you. You should research the programs in your area because specifics differ from one program to another.
So, these were some of the best first-time home buyer mortgage deals available for eligible buyers in Canada. If you are planning to buy your first home and looking for an experienced first-time homebuyer mortgage broker near me, rely on none other than Sandhu & Sran Mortgages. We have proudly helped hundreds of qualified borrowers in getting approved for a competitive mortgage. Contact us to get started with your application.