Apply For a MortgageReady To Buy Your First Home?
Buying your first home is exciting, but the process can feel overwhelming. High home prices, complex mortgage options, and strict lending rules make it hard to know where to start. That’s where we come in.
At Ross Taylor Mortgages, we specialize in helping first-time buyers like you get through these challenges smoothly and confidently. We’ll guide you through every step—from understanding the mortgage stress test to finding the best rates and helping with government incentives.
Let’s turn your dream into reality. Reach out today to discuss how we can make your first home purchase straightforward, affordable, and stress-free – from getting pre-approved to low down payments and great rates.
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Ross Taylor Mortgages is the leading brokerage in Toronto, Canada. We provide customized solutions with proven results, the best rates, and trusted lenders. We connect you with the best lenders and mortgage terms available in Canada.
Major Changes to Canada’s Mortgage Rules Every Buyer Should Know About
Starting December 15th, two major updates will roll out, and they could make all the difference, especially if you’ve been watching those ridiculous home prices in Toronto, Mississauga, and Vancouver.
- The insured mortgage cap will rise from $1 million to $1.5 million.
- First-time buyers will be eligible for 30-year mortgages. You heard that right—more time to pay off your house.
Let’s dig into why these changes matter (and why you should care).
Big Changes Coming To Canada’s Mortgage Rules: 8 Things You Need To Know
5 Ways We Help You Through Your Home-Buying Journey
Ross Taylor Mortgages is here to guide you through the process, answer your questions, and find a mortgage solution tailored to your needs.
Whether it’s saving for your down payment, understanding financing options, or helping you through pre-approval, we’re here to make your home-buying journey as seamless as possible.
Ready to get started? Here are the steps we will follow.
1. Getting a Pre-Approval
A pre-approval is an essential first step, as it helps you understand how much you can afford and clarifies your price range. With a pre-approval, you’re conditionally approved for a mortgage—up to a specific limit—before you start actively looking for a home.
This strengthens your position when it comes time to make an offer.
2. Choosing the right Mortgage and Interest Rate
With access to various lenders and mortgage products, we’ll help you choose the best fit, whether it’s a high-ratio mortgage, a fixed or variable rate, or other tailored options.
We aim to find the mortgage that aligns with your financial situation and goals, maximizing affordability and flexibility.
3. Understanding Government Incentives
Knowing all the incentives available can help you save thousands on your first home purchase. We’ll guide you through options such as:
- Home Buyers’ Plan (HBP): As of April 2024, you can now withdraw up to $60,000 from your RRSP (or $120,000 combined for couples) to put toward your first home.
- First-Time Home Buyers Tax Credit: A non-refundable tax credit that provides around $1500 in savings to help offset initial purchase costs.
- Land Transfer Tax Rebate: First-time homebuyers may be eligible for a rebate of up to $4,000 on their land transfer tax, easing some upfront expenses.
4. Determining Your Total Closing Costs
We’ll work with you to ensure you know exactly how much you’ll need upfront so there are no surprises when it’s time to close.
It’s recommended that you set aside an additional 2-4% of your home’s purchase price to cover closing costs, such as legal fees, property taxes, and other expenses, in addition to your down payment.
5. Navigating Credit Challenges
If you have a challenging credit history, we have relationships with lender specialists who can extend a fair-rate loan tailored to your needs.
We’re here to help you rebuild or work with your credit to make homeownership attainable.
Credit and Income Requirements
A minimum credit score of 640 is generally required to qualify for prime-rate mortgages, while a score of 680 or above can secure the best rates.
As a guideline:
- Gross Debt Service Ratio (GDS) should not exceed 39% of your gross income.
- Total Debt Service Ratio (TDS) should stay below 44% of your gross income.
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First-Time Home Buyer FAQs
What is the First-Time Home Buyer Tax Credit?
The FTHB Tax Credit is a federal non-refundable tax credit that you can claim in the year you buy your first home. For 2023, the credit is calculated based on $10,000 at the lowest federal tax rate, which translates to a $1,500 benefit for first-time buyers.
It’s not huge, but every bit helps when you’re facing all the costs that come with buying and moving into your first home.
Who is eligible for the FTHB Tax Credit?
You must be a first-time homebuyer, meaning you (or your spouse or common-law partner) didn’t own a home in the four years leading up to the purchase.
Also, the home must be your principal residence within the year of purchase.
Why should I take advantage of the FTHB Tax Credit?
While $1,500 may not seem like a game-changer, the FTHB Tax Credit can cover some of the smaller, unexpected expenses that arise, like home insurance or moving costs. For many new homeowners, it provides a small buffer that can make a difference as they manage other start-up costs.
This credit, along with the Home Buyers’ Plan (which allows first-timers to withdraw up to $35,000 from RRSPs without penalty), offers Canadians a bit of financial support as they step into homeownership.
If you’re preparing to buy your first home, consider speaking with a mortgage professional to help you explore all the options available so you can keep more money in your pocket while achieving your homeownership goals.
What properties are eligble for the FTHB Tax Credit?
You’ll only be able to take advantage of the HBTC if you purchase a qualifying home. The list of acceptable homes includes:
- Single-family houses.
- Townhomes and semi-detached houses.
- Apartments and condo units.
- Mobile homes.
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