Purchasing Your Property
Items to Consider When Buying Your Home
Mortgage options. Mortgage terms, or the “fine print,” varies by each lender. An independent Mortgage Broker will help ensure you are getting the best mortgage option for your unique circumstances. Dominion Lending Centres Integrity Mortgage BC will work on your behalf to help you determine which mortgage is right for you.
Down payment. A minimum down payment of 5% is required to purchase a home. Down payments can be from your own resources such as savings, RRSP's, TFSA's, a gift from an immediate family member, or from borrowed sources for qualified borrowers. As a first time home buyer, you can withdraw up to $35,000 from your RRSP for the purchase of your home without triggering taxes. Certain restrictions apply under the Home Buyers’s Plan, however this can be a strategic way to save for your down payment on your first home.
Mortgage default insurance. If you have less than a 20% down payment, your lender will require that you obtain mortgage default insurance which can be rolled into your mortgage payments. The insurance rate varies and is based on your down payment amount and income source.
Refinancing Your Mortgage
Reasons to Consider Refinance
Refinancing means paying off an existing loan and replacing it with a new one. There are many reasons why homeowners refinance;
Improved Credit Rating. Over time, as your credit rating improves, and you might be eligible for an improved interest rate.
Improved Interest Rate. It's always a great idea to meet with your Broker regularly to review your mortgage - you may become eligible for a lower interest rate, for a multitude of reasons.
Mortgage Term Change. Depending on your unique circumstances, your financial picture may change and warrant a change in your overall mortgage term - for example, a change in income may allow you to shorten your mortgage term, and pay off your home sooner.
Mortgage Type Change. You may have the desire and/or need to convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa.
Large Purchases. A refinance can allow you to tap into your home's equity in order to finance a large purchase.
Debt Consolidation. Refinancing may allow you to consolidate separate debts into a single payment with a single interest rate.