FAQs

It is a Canadian government program that provides a shared-equity mortgage to help reduce your monthly payments. The government contributes 5% or 10% of the purchase price of your home, which you repay when you sell the property or after 25 years. You are also able to withdraw up to $35,000 from your RRSP to use towards the purchase of your home and take out money tax-free from your TFSA and FHSA.

To be considered a first-time home buyer, you must meet one of these criteria: you’ve never bought a home, you haven’t lived in a house owned by you or your current spouse or partner in the last four years, or you’ve recently experienced a marriage or partnership breakdown.

For homes priced at $500,000 or less, the minimum down payment is 5% of the purchase price. For homes priced between $500,000 and $999,999, you’ll need 5% on the first $500,000 and 10% for the portion of the price above $500,000. If the home is priced at $1,000,000 or more, the minimum down payment required is 20% of the purchase price.

Newcomers to Canada can purchase a home, even if they have recently immigrated. They often qualify for a mortgage, provided they meet the standard financial requirements.

If you’ve lived in Canada for less than five years, you may be eligible for a newcomer mortgage with a down payment as low as 5%. If you qualify, you can use this mortgage to purchase various types of properties provided it comes with a Tarion Warranty.

Standard conventional mortgage programs generally require a minimum down payment of 20%. However, some programs allow for a minimum down payment of 5%, subject to Canada Mortgage and Housing Corporation’s requirements.

It is not always necessary. Some lenders will accept alternative forms of credit verification, such as a letter from your bank in your home country or proof of timely rental payments.

A Self-Mortgage is tailored for self-employed individuals, partnerships, or corporations who may not have sufficient income documentation or traditional employment verification.

To qualify, you must have been in business for at least two years and provide documents such as your Notice of Assessment, GST returns, credit reports, financial statements, and business license. CMHC self-employed mortgages are available for owner-occupied and non-owner-occupied properties with up to four units. Traditionally your mortgage approval is based on your taxable income, however, if you can put 20% down on your home purchase, some lenders can provide a mortgage based on your gross income and bank deposits.

You will require documentation of your personal and business financial statements, proof of full payment of HST and GST, evidence of principal and majority ownership of your business, personal tax return assessment confirmation, and a 12-month business bank statement.

Maintaining a strong credit score, keeping thorough financial records, and being able to show/prove gross income, will improve your chances of mortgage approval.