Rob Avery can provide you the names of the
professional associates and get you the mortgage money you need to
complete your purchase. A minimum cash down payment from your own
resources is generally required because mortgage lenders are
reluctant to advance the entire purchase price of a property. Your
minimum down payment would normally be 5%, however, several lenders
are willing to allow well qualified purchasers to borrow 100% of the
purchase price of a home in return for a higher interest rate and a
fixed borrowing term. As well, the Canadian Government currently has
a program that allows first time buyers to use up to $20,000
(proposed to be increased to $25,000) from their RRSP to help with
the purchase of their home.
Nevertheless,
it's to your advantage to maximize your down payment (20% or more
would be ideal), so you will be able to reduce or even avoid paying
the mortgage insurance premium. The larger your down payment, the
easier it will be to arrange a mortgage and carry it comfortably.
The smaller your loan, the lower your interest expense will be, and
the more equity you will have in your home. Equity is equal to the
value of your home minus the amount of your mortgage.
|