First Time Buyer Mortgages Made Easy with Altrua
Rather than overwhelming you with a vast amount of mortgage information upfront, we provide ‘bite-sized’ pieces of information, one step at a time that you’ll understand and feel confident about.
By the end of the approval process, our goal is to have you look back and agree that this was a pleasant and educational experience, with all of your questions answered.
With this said, to start, the following are the 3 main reasons that our existing customers have enjoyed working with Altrua:
1. Lower Rate
We provide the lowest mortgage rates in Ontario. Period. We work with many leading Banks and mortgage lenders and use our high volumes to obtain the best lender rate. Then we discount these already low rates beyond our competition. If you do happen to find a lower insurable rate, just let us know and we will beat it!
2. Education First Approach: Process, Incentives, and Mortgage Fine Print
What’s the point in saving $5000 with a lower rate if there are tricks and costly surprises hiding in the fine print? We guide you and provide advice on what to watch out for. Get the best rate AND the best mortgage fine print features and flexibility. Also available are first-time buyer Government incentives that are described just below.
3. Long-Term Service and Mortgage Management
Our customers appreciate more than the best rate. A mortgage is a long-term endeavor, and we aim to partner with you until it is paid off. Well over 60% of mortgage holders want to make a change within a 5-year term. This could be a move, a home equity line or a host of other reasons. Then there’s the renewal date after the term is up – when we will shop for the best rate again. So instead of a one time savings, you’ll confidently save again and again over the life of your mortgage with a property mortgage management plan set up.
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Summary of a Complete First Time Buyer Mortgage Meeting
The following may be used in conjunction with or to supplement a first-time buyer mortgage pre-approval meeting.
It’s all the main notes we would recommend taking, done for you!
- How the home financing process works in 3 steps.
- Understanding Mortgage Basics and Important Terms.
- Lowest Market Rates (yes these rates are real and with excellent fine print!)
- First Time Home Buyer Incentives
- Mortgage dangers and what to avoid in the mortgage fine print.
First Time Buyer Incentives
Using RRSP savings towards the down payment of your first home is an excellent strategy that can help save you thousands of dollars. The Home Buyers Plan allows for up to $35,000 of RRSP money to be used towards your purchase, and if purchasing as a couple, up to $35,000 each for a total of $70,000. The only ‘catch’ is that the RRSPs must be repaid starting in the second year after the purchase, at 1/15th of the RRSP value per year.
So when RRSPs are purchased, you can get a tax refund – but when RRSP money is ‘sold’ – this adds to your taxable income and there are more taxes to be paid as a result. What the Home Buyer’s plan allows for is RRSPs to be sold for the purpose of down payment, TAX FREE, within the year of the purchase. So you get the benefit of the tax refund and do not have to repay this on the sale of the RRSP when using the programme.
RRSP Purchase: $15,000
Tax Refund: $4,305.
Required RRSP Savings : Minimum $1,000 per year for 15 years.
- RRSP funds must be in the account for at least 90 days before the withdrawal.
- RRSP funds must be withdrawn within 30 days after the closing of the purchase.
- You have entered into an agreement to purchase a qualifying home.
- You cannot have owned a house within the past 4 years.
- If buying with a spouse who has owned a home in the last 4 years, you cannot have formally lived in this house within the past 4 years.
- Must be a Canadian citizen.
- If purchasing with a spouse, ensure the spouse with the highest earnings maximizes their RRSP first.
- If down payment funds are not available to purchase maximum RRSPs ($25,000/ person), consider taking out a low-interest RRSP loan, receiving the tax refund, and then cashing the RRSP to repay the loan in the year of the purchase.
- Do not invest RRSP funds into anything risky or that will lock funds in for long periods. Money market mutual funds or RRSP savings accounts work well.
- Do not forget to begin saving in your RRSP in the second year after your purchase.
In the Province of Ontario – first time buyers receive an instant rebate of up to $4,000 on their land transfer tax closing cost. Given this, the maximum house price that would not require any land transfer tax is $368,000,500 – and the land transfer tax would begin accumulating from this price point and upwards.
The Government of Canada allows for a non-refundable tax credit of up to $750 to First Time Buyers. The credit is intended to help cover the closing costs including legal work, land transfer tax paid, home inspections and other related closing costs.
Ensure you keep records of your receipts and understand the rules surrounding this credit, so that you may apply with your accountant at tax time.
Our Current Discounted Rates
|5 Year Fixed||1.74%|
|5 Year Variable||0.94%|
|3 Year Special||1.59%|
Principal Mortgage Broker/ Owner (Lic. # M08006143), Certified Financial Planner (CFP), BA (Hons.)
Altrua Financial Inc. FSCO #13005
Book a Free Home Buyer Consultation with Brent
- 14 years of experience, and owner of Altrua Financial Inc.
- Over 1500 mortgage transactions including over 300 first-time buyer mortgages.
- Specialized first-time buyer mortgage guidance and advice.
- Certified Financial Planning (CFP) designation enables him to establish unique, long-term relationships with clients that focus on wealth creation through consistent mortgage-based savings and planning, and other financial goals.
- Best Rate Guarantee*