Mortgage Info
First Time Buyer

Financing a home

After you've made the big decision about the type of home you wish to purchase, the next step is to contact a FAMILYLENDING.CA Mortgage Agent to determine how much you can afford to spend and be prequalified for a mortgage. Contact a FAMILYLENDING.CA now, call 1-866-941-6670or email us here

Use your RRSP

First Time Home Buyer? Don't forget about the RRSP Home Buyers' Plan. It can be all or part of your down payment. The rules have changed in recent years.

Buying with as little as 5% down.

Use your RRSP - you don't need existing RRSP funds to use HBP

Don't have the usual 20% down payment?

No worries - Increase your leverage with a high ratio mortgage! This consumer-oriented program makes the dream of home ownership a reality for more Canadians than ever before.

• What is it?
• Who is eligible?
• How it works
• What else should you know?
  

  What is it?

  Two programs are available that let you buy a home for as little as a 5% down payment. One is administered by GE Capital Mortgage Insurance Co., a private sector insurer, and the other by CMHC, a Federal Crown Corporation. Read carefully; the small print could create unexpected hitches! Use an FAMILYLENDING.CA Mortgage Agent to guide you through the process.
  

  Who is eligible?

  Any qualified borrower who meets the following lending criteria:

  • A first time buyer who wishes to purchase a home whose value is above the "ceiling" established in that area for the First Home Loan Insurance Program.

    OR

  • A non-first time home buyer who has 10% or more as a down payment
    
    

  How it works

  Both programs allow you to obtain a mortgage of up to 95% of the purchase price. Depending upon the percentage of down payment to be used, CMHC and GE charge the following one-time insurance premium to you, the borrower. This premium can be added to the mortgage without affecting the Loan To Value ratio (LTV).
  

  Down Payment =	% Financing (as % of mortgage amount)	Insurance Premium (calc. from mortgage amount)
  5 - 9.9%	90.1% - 95%	2.75%
  10 - 14.9%	85.1% - 90%	2.00%
  15 - 19.9%	80.1% - 85%	1.75%
  20 - 24.9%	75.1% - 80%	1.00%
  25 - 34.9%	65.0% - 75%	0.654% (special circumstances)
  35% plus	Up to 65%	0.5% (special circumstances)

  In the example given above, the mortgage of $178,000 would be subject to a 2.0% Insurance fee because it is 89% of the purchase price. The fee would be $3,560, and the total mortgage amount $181,560. To qualify for a CMHC insured mortgage:

  • your monthly payments for "shelter costs" (mortgage principal and interest plus taxes and heating) must be no greater than 35% of your gross pre-tax family income.
  • your monthly payments for all obligations - shelter costs plus loan, lease and credit card payments, plus alimony etc. - must not exceed 42% of your gross pre-tax family income.
    
  What else should you know? Apply Now

  In general, the credit status of an applicant must meet the lending criteria of the particular mortgage lender. A FAMILYLENDING.CA Mortgage Agent can help you meet the required criteria and assist you with the entire mortgage process. Plus we deal with many lenders and therefore have a greater chance of matching you with a lender.

  Also, while CMHC will qualify an ex-bankrupt applicant for insurance two years after discharge with subsequent reestablished credit, many lenders' own rules over-ride this feature, and they will decline the application.

  On the other hand there are a number of lenders who specialize in granting and administering mortgages to the full extent of the National Housing Act at competitive interest rates.

  In addition to the slight differences described above in mortgage terms and qualifying ratios (Total Debt Service ratio cannot exceed 40%) there are a few important conditions which apply to eligibility under this program:
  The applicant must be able to prove that their down payment comes from their own resources - savings, sale of investments, etc., the exception being a family gift that never has to be repaid, and which is in the borrower's possession before the application for Mortgage Loan Insurance is sent to CMHC.
  

Getting a mortgage pre-approved Apply Now

Be prepared

Don't miss out on the home of your dreams because you can't arrange financing quickly enough. Avoid disappointment. Apply for a pre-approved mortgage with FAMILYLENDING.CA now!

What is it?

A pre-approved mortgage puts your financing in place before you make an offer on a home. Usually, the sale of a home is contingent upon the buyer securing the required financing within an agreed-upon time frame. If you are unable to do so, the sale could fall through. With a pre-approved mortgage you'll be able to make a firm offer for the home of your choice. And as most Realtors will tell you, a firm offer adds an awful lot of leverage to price negotiations!

Who is eligible?

Any qualified borrower.

How it works

Apply online at FAMILYLENDING.CA for a pre-approved mortgage now and start enjoying the convenience and negotiating leverage that FAMILYLENDING.CA provides. All information you supply is completely secure and will be held in the strictest confidence.

Once you have received your pre-qualification from FAMILYLENDING.CA, we'll help you find a lender with the most competitive rates who will issue your prequalification certificate. After a brief telephone contact from the mortgage lender discussing options, and requesting you to send proof of income and employment, you can be "pre-qualified" - quickly and easily.

After you purchase your home, simply contact FAMILYLENDING.CA to provide property and offer details, along with any other information requested, and your actual mortgage can be approved within hours.

Apply Now