Posted by: Daryl & Wendy Ashby | June 19, 2010

The Party is Not Over

YES  – YOU CAN PURCHASE 

YES   ONLY  5.0% DOWN PAYMENT IS REQUIRED FOR OWNER OCCUPIED PROPERTIES,   CONTRARY TO THE RUMOURS , YOU DON’T NEED MORE THAN 5.0% OF THE PURCHASE PRICE FOR DOWN PAYMENT

 YES – YOU CAN USE A GIFT FROM RELATIVES FOR THE DOWN PAYMENT.   – DOCUMENTATION REQUIRED

YES – YOU CAN USE UP TO $25,000.00 FROM YOUR RSP IF YOU HAVEN’T OWNED A PRINCIPAL RESIDENCE IN THE LAST FIVE YEARS OR ARE A FIRST TIME HOME BUYER

YES – RATES HAVE GONE UP SLIGHTLY, BUT ONLY APPROX. 0.50% ON THE FIVE YEAR TERM FROM ABOUT TWO MONTHS AGO, NOT A SUBSTANTIAL INCREASE.

 FIRST TIME HOME BUYERS

  • YES – YOU CAN PURCHASE AN APARTMENT CONDOMIMIUM FOR $250.000.00 WITH AN ANNUAL INCOME OF JUST UNDER $50,000.00 AND $12,500.00 DOWN PAYMENT.   
  • SEE THE TABLE BELOW DETAILING INCOME REQUIRED TO QUALIFY ASSUMING NET PROPERTY TAXES OF $900.00 PER ANNUM ;STRATA FEES OF $155.00/MO AND BASED ON A FIVE YEAR FIXED TERM RATE OF 4..25% AMORTIZED OVER 35 YEARS.
Downpayment Mortgage CMHC Fee Total Mortgage  Monthly P & I Income Req’d
5% $12,500 $237,500 $6,531 $244,031 $1,112 $48,774
10% $25,000 $225,000 $4,500 $229,500 $1,046 $46,291
15% $37,500 $212,500 $3,719 $216,219 $985 $44,022
20% $50,000 $200,000 $0 $200,000 $911 $41,251

WHAT DO YOU NEED TO DO?  

  • YES – YOU NEED TO GET YOUR INCOME INFORMATION TOGETHER (2009 NOTICE OF ASSESSMENT FROM REVENUE CANADA;  RECENT PAY STUB;  LETTER OF EMPLOYMENT)
  • YES –  YOU NEED TO SPEAK TO A MORTGAGE EXPERT TO GET PROPERLY PRE-QUALIFIED, NOT JUST A RATE GUARANTEE OR A RATE HOLD
  • YES – A MORTGAGE EXPERT WILL PROVIDE A FULL AND PROPER PRE-QUALIFICATION,  CONFIRM INCOME, EMPLOYMENT AND DO A CREDIT CHECK. THEN THE ONLY THING MISSING IS YOUR CHOICE OF REAL ESTATE
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