First-Time Home Buyer Mortgages in Ottawa
If you’re planning on purchasing your first home, let’s start by saying congratulations! Prepare yourself for an exciting adventure, not to mention an endless sense of pride in having a property that is truly yours to cherish for decades to come. That being said, of course, you probably have oodles of questions and/or concerns, all of which are warranted. It’s a big step, and almost always one worth taking!
Let’s help you make as informed and confident of a decision as possible when it comes to mortgages for first-time home buyers. The Chris Allard team is prepared to lend invaluable insights for you to be comfortable with any choices we make together. Of course, we’re also here to ensure you attain the best possible rates and other cost savings.
Let’s help you cross the threshold into an exciting new chapter of your life!
Buy Your First Home with Confidence
When buying any home, especially your first, it’s important to undertake all necessary research and planning beforehand. Leave nothing to chance. Our team of real estate market experts is here to ensure a smooth, stress-free home-buying process that ensures lasting confidence. We’ll help you identify ideal properties and shop around for rates, narrow down the list of potential candidates, and provide you with all the facts and recommendations needed to choose the right home for your needs and lifestyle.
Perhaps you’re struggling to determine what you can really afford. Maybe you’re unsure whether you’ve factored all the definite expenses to come within your budget. Or, you might even be struggling to secure pre-approval. Regardless of your circumstances or needs, we’ll ensure you know how to buy a house for the first time with peace of mind, covering all the important angles as a team so you aren’t left to figure it all out solo.
Tips for Buying Your First Home
We’ve covered a wide array of tips for first-time homebuyers in extensive detail. Here are several summarized, quick-fire versions of these insights that are worth considering:
- While lenders only require a minimum of 5 percent for a down-payment, if you can manage to save up to 20 percent, you can avoid paying default insurance. That said, this isn’t realistic for many given current housing market price averages, and you don’t have to miss out on your dream home. We’re here to help with that! Even if you’ve only got 5 percent for a down, there’s no need to wait, and buying your first home remains a great decision.
- Lenders need to know how you obtained the down-payment amount. If received as a gift, you’ll need a benefactor’s signature in a letter to confirm this for validation purposes. We’re happy to provide a template for this letter, specified to your lender. You should also bear in mind that lenders prefer the gift to be from immediate family.
- Take advantage of first-time homebuyer incentives to save the maximum amount of money possible (we’ll explore this in more detail in the next section below).
- Lenders examine several important factors when it comes to your mortgage application. These include the down-payment, your annual and monthly income, any accrued debt and assets, and your credit history.
- There are different types of mortgages available. For instance, open mortgages that don’t penalize you for paying them off early or in larger sums each month. Closed mortgages, alternatively, are less flexible and incur prepayment penalties.
- There are two types of interest rates, referred to as fixed and variable. Fixed interest rates stay the same for your entire term and may only change at the end of your term. Variable interest rates are usually lower than fixed, but they can change in tandem with the market.
- Always consider additional costs, including home inspections, land transfer taxes, legal fees, property tax adjustments and, if you paid less than 20 percent in a down-payment, the obligatory default insurance.
- Even if you cannot qualify for a mortgage through a standard lender, there are alternative options. Traditional banks typically require prospective homeowners to jump through more hoops in order to secure pre-approval, but private lenders are generally more forgiving. Learn more about the mortgage options we can secure for those with bad credit.
For a deeper dive and further recommendations, we encourage you to explore our guide to buying your first home. And, of course, don’t hesitate to reach out and chat with us!
First-Home Buyer Incentives
The Chris Allard team knows how daunting it can be as a newcomer to homeownership, having worked with countless clients over the years in securing their dream property. That’s why we’re happy to help you dissect and take advantage of first-time home buyer incentives available to you. We’re able to ensure you navigate the whole process smoothly and with peace of mind, not to mention ample savings!
Here are a few examples of first-timer incentive program benefits:
- Discounts on land transfer taxes of up to $4,000.
- The Home Buyers’ Plan, enabling you to withdraw up to $35,000 from your RRSPs. That’s $70,000 as a couple! This can be used towards the down-payment of your future home with no taxes.
- Loan options through the Canada Mortgage and Housing Corporation (CMHC), for either five and 19.99 percent of the property price.
Frequently Asked Questions
Securing mortgage pre-approval guarantees an interest rate, which can be used to appeal to sellers during the negotiation process. You should also consider it as a means of determining the home price you can realistically afford. Essentially, it tells them that you are qualified for a mortgage and the sale can be closed without concerns over your financial status. Bear in mind that the pre-approval rate is only guaranteed for between 90 and 120 days.
If you break your contract, you aren’t alone. It happens to many Canadians. If this occurs, you’ll simply be responsible for paying the penalty. The amount will vary and be calculated differently depending on the mortgage company or bank you choose. We’re happy to help clarify any specifics involving your agreement, so feel free to reach out if you require assistance!
At a minimum, five percent of the purchase price is required for a down payment, but if you have the financial means to come up with 20 percent, it will help you save quite a bit on insurance and interest. This is because exceeding 20 percent prevents you from having to pay for default insurance. If you have concerns regarding your available down-payment amount, we can explore your options together.
For the average borrower, especially a first-time home buyer, there’s no cost involved! Our services are free of charge because we are compensated by the lenders themselves. Mortgage Agents and Brokers aren’t managed by any specific lender, meaning they can not only negotiate for the best rates possible but also help secure additional discounts. If anything, our team provides you with extra funds this way rather than taking money away.
Interested in settling into a beautiful new home with attractive rates and cost savings to boot? We’d love to make it happen. Contact the Chris Allard team today, and let’s get started!