A home is typically the biggest investment that a person makes during their lifetime. Borrowing enough money to purchase a home is a huge decision that will potentially affect you and your loved ones for the rest of your lives. The service provide by a Mortgage broker is free which means no cost to you for shopping around the market to save you time, research and money. Calling a Mortgage agent is as good as visiting yourself over 60 different Banks, Credit Unions and Trust Companies. A Mortgage Agent is available to cater your financial needs - daytime, evenings and…

Down payment refers to the funds that is paid up front towards the purchase of a property in order to obtain a mortgage.

There are several smart ways to invest $30,000 . In fact, the market offers you a myriad of options that include everything from investing in physical assets to acquiring shares in real estate trusts. Use the money as a down payment for rental property (minimum 20%) Invest in the pre-construction side of the property business. Invest in a primary residence purchase with as low as 5% down payment. Explore real estate partnerships.

The new breakdown is as follows: For homes with a purchase price less than or equal to $500,000, the minimum down payment is 5%. For homes with a purchase price greater than $500,000, but less than $1 Million, the minimum down payment is 5% (of the first $500,000) plus 10% (of the remaining balance). For purchase of $1 Million and above, 20% down payment is required.

With the federal government’s Home Buyer’s Plan, you can use up to $35,000 tax-free in RRSP savings ($70,000 for a couple) to help cover the down payment on your first home. From there, you will have 15 years to repay your RRSP. The RRSP funds you are using must be on deposit for at least 90 days. You will also need a signed agreement to buy a qualifying home in order to qualify under First Time Home Buyer’s plan.

Lenders will require mortgage loan insurance if a borrower has a down payment of less than 20% of the purchase price of the home.

A mortgage pre-approval can help get an estimate of how much you can afford to spend on your home. “Pre-approval” is a valuable tool. This means that the lender has actually checked your credit to approve a specific mortgage/loan amount; usually for a particular time period such as 120 days, based on the information provided.

The interest rate on a fixed rate mortgage is set for a pre-determined period – usually 6 months to 10 years. This offers the security of knowing what you will be paying for the term selected without rate fluctuation.

Your monthly mortgage payment can fluctuate with a variable mortgage depending on the prime lending rate. Your mortgage payments will go up if prime increases.