There are many tools available to help you evaluate your financial situation and make your dream of becoming a homeowner a reality.<\/p>\n
Borrowing Capacity and Preauthorized Mortgages<\/strong> Mortgage Loan Insurance<\/strong> Mortgage loan insurance is applicable to various new or existing properties. Also, bear in mind that a modest down payment means a higher mortgage payment and in the end, a greater total cost. In Canada, mortgage loan insurance is available through Canada Mortgage and Housing Corporation (CMHC) and Genworth Financial Canada.<\/p>\n The Home Buyer’s Plan<\/strong> To qualify, neither you nor your spouse may have owned a home that was used as a principal place of residence during the five years prior to your withdrawal request. In addition, you must have entered into a written agreement for the purchase or construction of a property (promise to purchase or preliminary contract) before being able to withdraw funds from your RRSP. For more information about eligibility conditions, contact the Canada Revenue Agency or your financial institution.<\/p>\n Tax-Free Savings account (TFSA)<\/strong><\/p>\n The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are\u00a018 and older and who have a valid social insurance number (SIN) to set money aside\u00a0tax-free\u00a0throughout their lifetime.<\/p>\n Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.<\/p>\n Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA\u00a0are not tax deductible.<\/p>\n First home saving account (FHSA)<\/strong><\/p>\n This program allows each spouse to create their own FHSA and to contribute individually up to $8,000 a year, for a total limit of $40,000.<\/p>\n It is tax deductible just like an RRSP but it is totally exempt from taxes upon withdrawing for the purchase of a first home.<\/p>\n You can use the FHSA funds in the same instruments allowed in your RRSP. You can use the funds towards the purchase of any time of residence, condo, plex, new house, existing house etc.<\/p>\n To be eligible, you must be over 18 and under 71, and have not owned jointly or individually a house in the last 5 years.<\/p>\n It is a great program because your capital and its growth are tax free as long as you use them to purchase a home. If you decide not to purchase, you can transfer the funds to your RRSP, regardless of your contribution room.<\/p>\n You will have to close the FHSA account after 15 years or before you reach 71.<\/p>","protected":false},"excerpt":{"rendered":" There are many tools available to help you evaluate your financial situation and make your dream of becoming a homeowner a reality. Borrowing Capacity and Preauthorized Mortgages When you start looking for a property, it’s in your best interest to determine your borrowing capacity. That way, you know what type of property to lean towards […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":7,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-95","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/pages\/95","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/comments?post=95"}],"version-history":[{"count":2,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/pages\/95\/revisions"}],"predecessor-version":[{"id":1824,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/pages\/95\/revisions\/1824"}],"up":[{"embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/pages\/7"}],"wp:attachment":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/media?parent=95"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nWhen you start looking for a property, it’s in your best interest to determine your borrowing capacity. That way, you know what type of property to lean towards during your search. One approach is to get a preauthorized mortgage before even finding your property. Thanks to a preauthorized mortgage, you already know how much money you can borrow, your interest rate and the amount of each payment. You will be able to find a property that matches your means.<\/p>\n
\nYou dream of buying property but you don’t have enough for a down payment? Not a problem! Mortgage loan insurance can help make your dream a reality. In general, lenders require you to get mortgage loan insurance when you have put down less than 20% of the property’s sale price.<\/p>\n
\nThe Home Buyer’s Plan is a government program that allows buyers to withdraw money from their RRSP, without paying tax on withdrawal, in order to purchase a home. Funds withdrawn must be paid back into the RRSP within a fixed time limit.<\/p>\n