Financing / Down Payments / Tax Credits

What is CMHC Mortgage Loan Insurance?

Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment of 5% — with interest rates comparable to those with a 20% down payment.

To obtain mortgage loan insurance, lenders pay an insurance premium. Typically, your lender will pass this cost on to you. The premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.

Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.

First-Time Home Buyers' (FTHB) Tax Credit

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first- time homebuyers who must pay these costs, as well as save money for a down payment. To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

 

Wally Buczkowski

Wally Buczkowski

Broker
CENTURY 21 Leading Edge Realty Inc., Brokerage*
Contact Me

Best Real Estate Team in 2015 !

Markham Economist & Sun Readers voted Wally Buczkowski & Kimberly Clark Best Real Estate Team in Markham & Unionville for 2015!
This Readers Choice nomination is a wonderful accolade in itself. The recognition from the community is very much appreciated and allows us to give back through charities, church, volunteerism and our local Markham-Unionville Rotary Club. 
Thanks again to all of our supporters and to 
Paul Baron, our Broker of Record at Century21 Leading Edge Realty who helped us make it happen! 
See us in print on page 22 of the March 17, 2016 Economist & Sun special edition.

Offering on a Property Explained

Offering on a Property Explained

There are six key components to the elements of an offer. They are:

Price

Depending on the local market conditions and information provided by me, your Real Estate Professional, the price you offer may be different from the seller's price.

Deposit

Your deposit shows good faith and will be applied against the purchase of the home when the sale closes. As your Real Estate Professional I can advise you on an appropriate amount.

Terms

Includes the total price offered and the financing details. You arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.

Conditions

These might include "subject to home inspection", "subject to you obtaining financing", or "subject to you selling your property".

Inclusions and Exclusions

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items, known as chattels would remain in the house.

Closing or Possession Date

Generally, the day the title of the property is legally transferred and the transaction of funds finalized.

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