First Time Buyers are Confused about New Down Payment Rules, " Can I still Buy with 5 % Down?"

Yes! Yes! Yes! You can buy a Home. The confusion of all the changes the Canadian Government have made  over the past 2 - 3 years to the borrowing rules to get a new mortgage in 2013. IF YOU ARE GOING TO LIVE THERE you can, provided you can qualify, still get up to 95% of the purchase price on one mortgage.

So can you qualify? Do you have a job and are you paid a salary ? High enough to make the payments of principle and interest and property tax with approximately 30% of your Gross Monthly Income? Can you pay your car payments, student loans and visa payments, etc. with no more than 40% (along with the house costs) of your salary?

The big question is what happens to restaurant servers, taxi driver, pizza delivery person who make as much as 50% of their income in tips, or heaven forbid you make commission or are on a government contract what happens then? The answer is you will likely need 10% or even 15%.

Carol Jefferies

Carol Jefferies

Sales Representative
CENTURY 21 Action Power Team Ltd., Brokerage*
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