Financing / Down Payments / Tax Credits
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.
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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.