Considering buying a home for the first time in Kitchener?
The Kitchener housing market is dynamic and competitive, so you will want a strong pre-approval from a good mortgage broker or bank. At Altrua we review your file carefully so that when you place a competitive offer on a home, you can be confident that financing should not be an issue.
Down Payment
With a 5% – 15% down payment, typically this will involve Mortgage Default Insurance (CMHC). This involves a fee or ‘premium’ that’s built into the mortgage and paid down over the life of the mortgage. However some of the lowest mortgage rate are available with CMHC insure mortgages, because there is very little lender risk. So, these lower mortgage rates can help mitigate the CMHC premium over time,
With 20% down payment, there is more flexibility available from leners. For example, a 30 year amortization may be applied for to help reduce payments. If there is a issue with disclosing full income, for example, in a self employed application having 20% down payment can help too.
First Time Buyer Incentives
Make sure you are aware of the incentives that apply to you. These include:
- First-time buyer plan- use up to $35,000 of RRSP per applicant.
- TFSA Home Buyers Account – use up to $40,000 when contributed over 5 years.
- Homebuyer tax credit – Get up to $750 as a tax credit
- Land transfer tax rebate. In Kitchener, mortgage closing costs will help to cover any excess land transfer tax paid, beyond what the instant rebate covers.
Finally, work with a good local realtor who knows the Kitchener market well. This will help you to find the right home and win bids. in case there are multiple offers. Finally, they will work well with us as your Kitchener mortgage broker when the offer is accepted, to help provide a smooth and pleasant closing experience for you.
Connect with Altrua for more information!