FIRST TIME HOME BUYER INCENTIVE:

WHAT IS IT?
Launched in 2019 by the Canada Mortgage and Housing Corporation (CMHC), it's a program that offers access to an interest free loan, to help first-time buyers get in to their first home. They will top up your downpayment by 5% on most homes, or 10% on new builds for a shared-equity mortgage. 
HOW IT HELPS YOU:
The larger your downpayment, the lower your monthly payments, thereby lowering your overall mortgage cost. There is no interest or regular payments for the top up, and you can pay it back at any time without penalties. 

HOW DO I PAY IT BACK?

The loan isn't due for 25 years or until you sell the house, whichever comes first. When you re-pay the loan the current value of the house is calculated (for both 5% & 10%) meaning you are partially protected if the market drops. The government is now limiting its share in the appreciation of your home to a maximum of 8% per annum on the incentive amount, so you will keep more of the equity if it has increased in value. If it's decreased at the time of repayment then the share of the loss is also limited to a maximum of 8% per annum. 

WHO IS IT FOR & HOW MUCH CAN I AFFORD?

It's meant for first time home buyers whose household income is less than 120K, and you must have at least 5% but not more than 20% of the downpayment amount for the home. Your mortgage must also be eligible for mortgage insurance.  Depending on where you live, the maximum purchase price with this program is typically 4x your annual household income. In theory, your maximum mortgage under this program is 480K. My trusted mortgage professionals will be able to walk you through this process, explain it all to you, and see if you qulalify.

IT'S A BIG STEP!
 
Taking the leap to ditch the landlord, to stop paying someone else's mortgage and take on your own is a huge step, and probably going to be at the same time both hugely exciting, and daunting. How much can I afford? Where should I get my financing? What neighborhood do I want to live in? Can I afford a house or should I be looking at condos or townhomes? What extra costs should I be prepared for? How do I select the right real estate advisor? These are just some of the questions that will be on the hamster wheel going round and round in your head, and all of them very valid questions and concerns. That's what im here for, with the help of my support professionals I can answer each of those questions for you honestly, so you can move forward making educated and informed decisions about your home buying journey. Having a trustworthy, competent, knowledgeable real estate advisor beside you from A through Z will ensure this experience goes as smoothly as possible. Im not just in the business of selling you a house, I want to find you a home that fits your lifestyle and budget so you can live easily and happily. 
CALGARY OFFERS A LOT!
 
Being a first-time home buyer in Calgary is fantastic, and very reasonably priced. With the benchmark home prices nearly half of the other major Canadian cities, Calgary, Cochrane, Airdrie, Okotoks and the surrounding area offer many options from starter condos, to half duplexes and townhomes, to small single family detached character homes in the inner city under 500K! Once you have your pre-approval in hand from your mortgage professional, which I am happy to introduce you to a few, there will be no shortage of properties for us to go and view. 
YOUR MORTGAGE PRE-APPROVAL:
 
The mortgage business in Canada is very competitive and constantly fluctuating. There are a lot of options for a person applying for a residential mortgage from A lenders like our most well-known banks to B lenders which are usually privately funded mortgages at higher interest rates for those who don't qualify for an A lender. Getting your pre-approval prior to shopping for homes is highly recommended, and I have fantastic mortgage brokers that can help you. After collecting your information, occupation, pay, taking a look at your finances and expenses, and running a credit check they will get to work and get that pre-approval in place which will allow you to know:
 
 - the maximum amount of mortgage you may qualify for
 - an estimate of what your mortgage payments will be
 - if you can lock in your interest rate on the pre-approval for 60-130 days allowing you
   time to shop and not be affected by interest rate fluctuations
 
Going through this process does not guarantee your approval for a mortgage. While you are going through the process, I will be watching the housing market for you and pre-selecting interesting properties at various price points to show you once we have the green light and your pre-approved amount. 
 
CLICK HERE to view my preferred mortgage broker professionals
 
DOCUMENTS FOR YOUR BROKER:
 

Before pre approving you, a lender or mortgage broker is going to need a variety of documentation and information from you. 

 

 - your assets (what you own)

 - your income

 - your level of debt

 - your identification card

 - proof of employment

 - proof that you can pay for the down payment

 - information about your assets and your debts and financial obligations

 

In order to prove your employement and your earnings you will have to provide your current salary or hourly pay rate by means of a pay stub, your position and length of time with the employer, and notices of assessment from Canada Revenue Agency for the past 2 years if you are self employed. You may also be requested to provide recent finanacial statements from all of your bank accounts or investments.

 

DONT FORGET ABOUT YOUR CLOSING COSTS

 
Once I have negotiated the best deal for your new home and the offer is accepted, the transaction gets transferred to your real estate lawyer. I have a few that I have worked with a number of times, that offer fantastic rates and service and I can pass those along to you to get in touch with so you can choose which may work best for your needs. You have to take more than just the purchase price of your home into consideration. Depending on your transaction legal fees in Alberta are generally between $750.00 - $2,000.00 approximately. 
You should also consider your property insurance, moving expenses, utility hookup fees, your home inspection ($300-$1500) and home appraisal ($300-$500) which your lender typically needs for the mortgage. 
 
 
CLICK HERE to see a rate sheet provided by my partners at Litco Law
 
 
CHECK OUT THE CALGARY HOMES UNDER $550,000 BELOW
 

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