New House and Mortgage Information for Canadians

In Canada intended homebuyers can purchase a new house with just a 5% of down payment. It was never been that easy and one can even use his or her RRSP funds for making down payment and the best thing is that no tax will be charged on that. Proper planning is a must before making the big decision of buying a new home. The excellent time to buy a house is when buying conditions are favorable. When the market conditions are favorable, as have they been for the last several years, you as a potential homeowner should check your financial conditions, make a budget and find the mortgage options available and get a mortgage pre-approval.

Home prices in the competitive market: Today's market is the buyer's market. The competition ensures that buyer would get the best deal and great value for money. More and better facilities, utility design and better construction methods make a new home a great purchase.

Choices available in Homes: Before purchasing a home the buyer can choose from wide variety of homes available to suit his or her requirement. Homes can be chosen from starter town homes to retirement bungalows, from neo-traditional to ultra modern from downtown infill to suburban communities. Homes also differ in terms of design, style and prices. From the incredible choice available buyer has a freedom to choose the feature and finish he wants. 

Interest rates on mortgage: In today's market the buyer need not worry about the interest rate. The housing cost is reduced because of low interest rate for the past few years. Low interest rates along with stable housing prices have increased the affordability of new house. It has even reduced the mortgage cost on the average family income. It is advised to the homebuyer to check the wide range of home financing options that are being offered by the financial institutions. It is always better to compare different options available to get the best deal. Even lenders can help the buyer in getting a mortgage by choosing the right option as per their situation and making their dream of having a new house come true. This is advised by Tom Alter, Past President, Bank Of Montreal Mortgage Corporation.

Options for first-time buyers: To help the first-time buyers, two options or programs are designed for them. But the first-time buyer doesn't mean those who have never owned the house but even include those who want to buy a house without saving money for years for down payment.

The first home loan insurance program is of Canada Mortgage and Housing Corporation (CMHC). In this program first-time buyers get the mortgage with only 5% down payment. This program is for those buyers who can afford the ongoing cost of the home buy don't have the down payment. Buyers can get information about this program through CHMC.

The second program is that the first-time buyers for purchasing their home can even use their Registered Retirement saving Plan, which is tax-free. The limit to withdraw from this fund is limited to $20,000 per person or $40,000 per couple.