Buying a home is an exciting time in anyone’s life, whether it’s your first or your fifth!
It can also be a very stressful and overwhelming experience as you search listings, visit open houses, and compete with other buyers.
Let us help you narrow your search by discussing your financial position and evaluating what you can afford, including how much you will need for your down payment, lawyer and real estate costs, and other associated fees. Together, we can work out a savings plan and pick the mortgage product that works best for you.
I need a mortgage
The mortgage that says simplicity. Make your financing easy by choosing your term and payment schedule, and have the freedom to make extra payments whenever you want (extra payment annual maximum is 20% of your original mortgage amount).
terms from 1 year (open or closed) or 2 to 5 year (closed)
variable rate option
amortization up to 30 years
convenient weekly, bi-weekly, semi-monthly or monthly payments directly from your Credit Union account, another financial institution or payroll deduction
If you’re looking for more flexibility than a conventional mortgage, a Momentum Meritline may be the perfect product for you. This mortgage takes the equity in your home and makes it available to you. It is the perfect solution for the active borrower and guarantees you one of Momentum’s lowest rates. Besides only paying interest on what you’ve used, you can re-borrow what you’ve paid down again and again, up to your pre-approved limit.
borrow up to 80% of the equity in your home
works as a fully secured Line Of Credit
rate as low as Momentum prime rate
flexible repayment schedule, pay as much as you want or as little as the monthly interest only
no pre-payment penalties
allows you to access the money you have when you need it
I’m a first-time home buyer
Congratulations on this milestone in your life! The First-Time Home Buyer’s plan is a great way to take advantage of your RRSP savings (tax-free) to contribute to your down payment on the purchase of your first home.
What is the First-Time Home Buyer’s Plan?
The HBP is a government program that allows you to withdraw funds from your RRSPs to be used to buy or build a home. Each eligible RRSP holder can withdraw, without immediate taxation, up to $35,000.00 without having to pay income tax for the withdrawal(s).
you must have a written agreement to buy or build a home
you have to intend to live in the home no later than one year after buying/building it
you must be a first-time homebuyer
you must be a resident of Canada
you cannot own the home for more than 30 days before the withdrawal is made
you must complete Form T1036 for each eligible withdrawal
you have to receive all withdrawals in the same calendar year
your RRSP contributions must remain in your RRSP for at least 90 days before they can be withdrawn
you cannot withdraw more than $35,000
you must start repaying into your HBP the second year after the year you made your withdrawal
you have to repay all withdrawals made for the HBP back into your RRSPs within 15 years
How and what amount do you repay into your HBP each year?
Each year, the government will send you a Home Buyer’s Plan Statement of Account on your notice of assessment.
The statement will Include:
the total of your HBP withdrawals
the amount you have repaid to date
your balance for the HBP
the amount you have to contribute to your RRSPs and designate as a repayment for the next year. You have until 60 days into the following year to make your contributions for the previous year.
The amount of repayment each year is generally 1/15 of the total amount you withdrew until the full amount is repaid into your RRSPs. To designate all or part of your RRSP contributions for the year as part of your repayment into the HBP, complete lines 245 and 246 of Schedule 7 and file it with your tax return.
Here are some useful tips to help with the selection and purchase of your home.
Make a wishlist
Have a clear picture of what you’re looking for in a home. It makes your search that much easier and prevents you from rushing into an offer on a home that might not actually fulfill everything you’re looking for.
Apply for a preapproved mortgage
This will narrow your home search to what you can afford. Plus you can get locked in to a great Momentum rate and it will give you a competitive edge with your conditions when you are making an offer.
Budget for closing costs
Some common costs can include land transfer tax, lawyer fees, mortgage application fees, title search fees and appraisal fees.
Pay for furniture now, not later
Uf it’s your first home and you need to furnish every room, try to avoid deferred payment plans. Unless you have the ability to pay your balance off before the due date, you will be incurring unnecessary high interest charges. Consider saving up enough money to furnish your home over time or consider buying used furniture. If you qualify, you might also want to look at getting a line of credit which has a much lower interest rate.
Buy a home that’s affordable
You will want to review your monthly budget to understand how much of your income will be going to your home (mortgage, taxes, utilities). Then decide on an amount that you’re comfortable with. You want to be able to enjoy life without having all of your income going into your home.
Make a larger downpayment
You are only required to put down 5 percent of the purchase price of your home, but the more you can put down, the better. If you put down less than 20 percent, you will have to pay an insurance premium that is calculated based on your mortgage amount.
Budget for extra expenses
This includes the deposit that will be required with your accepted offer, moving costs, utility hookups, and reimbursing the previous home owner for any prepaid property taxes or utilities.
Avoid hidden costs
Invest in a home inspection. We highly recommend getting an inspection of your new home before you make the commitment to buy it. A home inspection typically runs for approximately $350–$400, but will give you peace of mind and can save you more money in the long run.