How to Get a Mortgage for First Time Home Buyers  

First-time homebuyers are required to understand what entails the mortgage’s terms and conditions whenever they’re applying for a loan. Many would say that it’s not easy to get approved for a home loan on their first try, but it can definitely happen if you go to the lenders that specifically accommodate first time home buyers like you.  

 Home Buyers

It all boils down to getting the right assistance from the people that can genuinely help you out. Mortgage brokers are some of the professionals that can assist you as they’re well-versed in these kinds of transactions. They can even grooming first time home buyers so they get approved for the loan without going through a lot of hassles.  

As a matter of fact, first time home buyers can take advantage of certain benefits that are available only to them. Some of the benefits that are exclusive to Ontario first-time home buyers are the following: 

  1. Land Transfer Tax Refund 

The city government of Ontario grants first-time homebuyers a tax rebate on land transfer based on the amount they paid for the land or its fair market value. Such a rebate has a limit of $4,000 and that means there’s practically no tax incurred for the first $368,000 purchase price.  

  1. Home Buyer’s Plan 

The home buyer’s plan is another advantage offered to them. This one allows them to withdraw up to $25,000 from their RRSP to go toward the down payment. It’s some kind of an interest-free loan that has to be paid back after 15 years. If you’re making the purchase with your spouse who is a first-time home buyer, then you can withdraw up to $50,000. 

  1. First Time Home Buyer’s Tax Credit 

Those who have not owned a home in the last four years are eligible for a tax credit based on the prevailing federal income tax rates. This is a little bit too complicated to explain so it is best that you consult with real estate lawyers or get a better mortgage to help you out.  

These are just some of the benefits that are available to first-time home buyers like you. In order to take advantage of them, talk to a qualified mortgage broker or real estate professional. They should help you navigate through the dynamic real estate market of Toronto and provide you with the type of loan that’s most advantageous to you.  

Don’t worry about seeking the help of mortgage brokers and realtors because these professionals usually work to your advantage. Their commissions are shouldered by property seller so you don’t have to pay them anything for facilitating the transaction.  

Know More about Mortgages 

There are more to mortgages than just applying for the loan and getting approved. You should also understand that it’s going to be quite a big financial obligation for you so you must be well-guided when choosing which property to buy, what mortgage type to take, and what interest rate to follow. Knowing all of these will lead you to a better experience and a higher credit standing in the end.  

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *