First-time Home Buyer
Looking to buy your first property? Congratulations on reaching this significant milestone. We’re here to help you take advantage of all the perks first-time home buyers have access to and find a mortgage rate that fits your needs.
Or call us at (647) 503-5349
What First-Time Home Buyers Need to Know
What First-Time Home Buyers Need to Know
What is a mortgage? A mortgage is a loan used to buy property, repaid through regular payments covering both the principal amount (the borrowed sum) and interest. Over time, these payments reduce the loan balance.
First-time buyers can benefit from building equity in an asset that grows tax-free as a resident. By getting into the market and working on your equity, you’re investing in your future rather than paying someone else’s mortgage. You can start with a down payment as low as 5% of the purchase price, but contributing more can lower mortgage insurance costs and improve loan terms.
At MonsterMortgage.ca, we can help you not only find the best rates for your mortgage but also take advantage of our 1% rebate program, adding even more value to your home financing.
From Denial to Homeownership
Our client, Lily, was struggling to qualify for a mortgage as a first-time home buyer due to her limited credit history and high student loan debt. Despite having a stable income and a significant down payment, she was repeatedly rejected by traditional banks because she failed to qualify against their debt service ratio requirements.
MonsterMortgage.ca was able to make important recommendations to Lily to consolidate some of her debts, which made it easier for her to qualify for the mortgage that she needed. At that point, MonsterMortgage.ca was able to identify the right lender for Lily, who had more flexible lending criteria and was more understanding of Lily’s goals. With our expertise and broad network of lenders, MonsterMortgage.ca was able to find Lily a mortgage solution that allowed her to buy her first home.
From Denial to Homeownership
The Monster Difference
Our Customers Are Our Priority
With over 25 years of experience, we’ll work closely with you to assess your eligibility for different debt consolidation options, considering your financial situation and both short-term and long-term goals.
Get All The Facts
We’ll spend time understanding your needs and providing you with all the details and options to make an informed decision. Our independence allows us to focus on working for you. We partner with numerous lenders so we can find you the most advantageous deal.
Our Reputation
We are an award-winning Canadian mortgage brokerage firm with a weekly call-in show on CP24. We believe in giving back to our community. Over the years, we’ve proudly supported various community initiatives, including a 14-year partnership with the City of Toronto to raise millions of dollars for seniors.
Benefits
Tailored Mortgage Options
We offer a variety of mortgage options customized to fit your unique needs and financial situation, helping you secure the best fit for your first home.
Access to the Best Rates
As a trusted broker, we have the ability to shop around with multiple lenders, ensuring you receive the most competitive rates available in the market.
Increased Approval Chances
Our deep understanding of lenders’ unique criteria allows us to match you with the right mortgage products, increasing your chances of approval even in complex situations.
Expert Guidance Every Step of the Way
Our experienced team ensures you work with one dedicated person throughout the entire home-buying process. From pre-approval to closing, you’ll receive consistent, reliable advice and support, making your journey to homeownership smooth and informed.
Discover Your Home-Buying Potential
Are you a first-time home buyer looking to understand your budget and mortgage options? Our calculators can help you navigate your journey to homeownership.
FAQs
To qualify, your annual income must not exceed $120,000 and the total mortgage amount cannot be more than four times your annual income. Either you or your spouse/partner must be a first-time home buyer and you must be a Canadian citizen, permanent resident, or a non-permanent resident with work authorization in Canada.
For eligible first-time buyers, the Canadian government has created a program to help eligible buyers reduce their monthly mortgage payments without increasing the down payment on the home. The government contributes 5% or 10% of the home’s purchase price, depending on the property type. This incentive acts as a second mortgage on the property and must be repaid within 25 years or when the home is sold, whichever comes first.
Getting pre-approved for a mortgage offers several advantages for first-time home buyers. It provides a clear understanding of your budget by determining how much you can borrow, which helps you focus on homes within your price range. Pre-approval also strengthens your offer by showing sellers you are a serious buyer with secured financing, making your bid more competitive. Additionally, it can speed up the closing process since much of the paperwork and verification are completed in advance. Plus, with rate protection for 120 days, you’re safeguarded against rate increases, ensuring your mortgage rate remains stable. Overall, pre-approval gives you confidence and a strategic edge in the home-buying process.
The standard mortgage for first-time home buyers is a repayment period typically 25 years, although 30-year mortgages are becoming more widely available. For instance, starting August 1, 2024, first-time buyers can now purchase a new construction home with a 30-year mortgage and a down payment of less than 20%.
You or the person you’re buying the home with may qualify as a first-time home buyer if:
a) You have never previously purchased a home.
b)You have experienced a breakdown of a marriage or common-law partnership.
c) In the past four years, you have not lived in a home that was owned by you, a spouse, or a common-law partner.
Let Us Help You Get the Best Mortgage
With experience assisting over 100,000 Canadians, we’re here to help you explore your options, compare rates, and find the mortgage that suits you best.
Call Us
Book an Appointment
Schedule an appointment on the calendar