Mortgage Specialist Heidi Hamano offers one stop service for a wide rage of mortgages.
Buying a home is without any doubt the biggest step in your life. Working with a mortgage specialist, who put your interest first, is a key to complete a successful real estate acquisition. Let me assist you to secure the best rate and flexible mortgage options.
Why should you work with a mortgage specialist?
- No charge for my service (OAC)
- Expertise and unbiased advice
- Access to the lowest rate offered only through a mortgage broker channel
- Industry knowledge that can increase your buyer power
- Personal service cater to each client’s needs
Canada’s stress test rate has fallen
The interest rate used in Canada’s mortgage stress tests has fallen for the first time since 2016, making it slightly easier to become a homeowner.
The mortgage qualifying rate dropped to 5.19 per cent from 5.34 per cent, where it had been locked since May of 2018, according to new figures from the Bank of Canada.
First Time Home Buyer Incentive will set to be effective as of September 2nd
Billed as a "shared equity mortgage”, the government will lend first-time home buyers’ money to buy a home. According to the budget document, this new incentive "enables homebuyers to reduce the amount of money required from an insured mortgage without increasing the amount they must save for a down payment.”
The government has earmarked $1.25 billion over three years, administered by Canada Mortgage and Housing Corp. (CMHC), to provide up to 5 % of the cost of an existing home and 10% of a new home through what amounts to an interest-free loan to be repaid when the property is sold.
- Borrowers must have a down payment of at least 5% -- but less than 20%-- and a household income under $120,000.
- The insured mortgage plus incentive, combined, cannot be greater than four times the participants’ combined annual household incomes.
- Condo purchases are allowed.
- The program is expected to start in September 2019 with further details to come this year.
- If you use it, the government will share in price gains or losses when you sell. (The government hasn’t released many details on this yet)
- While the Department of Finance has not commented on this, the program is called a "shared equity mortgage”, so it may be safe to assume it will be a registered second.
- You must be a first-time homebuyer. (We don’t know whether the government’s definition of "first-time buyer” will be the same as with its RRSP Home Buyers’ Plan (see definition above)
- Your mortgage must be default insured. Buyers may use any of the three insurers.
- There are no monthly payments required on this incentive money
You have to pay the money back when you sell your home. There was no mention of what happens during a refinance but if similar programs abroad are any guide, a cash-out refi would trigger the repayment provision.