4 Pillars Consulting Group
203-14439 104th Ave
Surrey, British Columbia
- Toll Free: (866) 690-DEBT (3328)
The Canadian Home Program assists anyone who is considering home ownership and is offered through two sessions. Session 1 deals with how to qualify for home ownership while Session 2 educates consumers on the mechanics of the Home Ownership transaction.
We believe that every Canadian should be a home owner and there is no cost to be enrolled in the program or attend the sessions.
In order to qualify for the Down Payment Assistance, you must attend both sessions and be issued the completion certificate. While everyone qualifies for some amount of assistance part of our goal is to identify and connect you with additional sources of Down Payment Assistance that may have their own requirements. The down payment assistance provided through our program is considered a gift and is only required to be repaid if the property is sold for a profit within 2 years of the purchase.
You can visit Upcoming Sessions on our classes page. Keep in mind that this is a national program so new workshops open all the time. If you do not see current programs in your area then Contact Us and let us know of your interest and we will alert you as new sessions are added.
That is what the education sessions are there to provide. While there are many on-line resources that help to determine what you can afford they do not explain how those numbers are derived nor do they identify what you can do to improve your situation. In addition the calculations and ratios may indicate what you qualify for but only you will really know what you believe is affordable. Make sure you don't leave yourself house poor. We will show you how to structure your payments so that you can still afford simple luxuries. We know this can be complex - it is all covered during the sessions.
A pre-purchase home inspection can add peace of mind and make a difficult decision much easier. It may indicate that the home needs major structural repairs which can be factored into your buying decision. A home inspection helps remove a number of unknowns and increases the likelihood of a successful purchase.
A home inspection is a visual examination of the property to determine the overall condition of the home. In the process, the inspector should be checking all major components (roofs, ceilings, walls, floors, foundations, crawl spaces, attics, retaining walls, etc.) and systems (electrical, heating, plumbing, drainage, exterior weather proofing, etc.). The results of the inspection should be provided to the purchaser in written form, in detail, generally within 24 hours of the inspection.
Currently a minimum down payment of 5% is required to purchase a home, subject to certain maximum price restrictions. There may be additional considerations depending on your area and the requirements around mortgages are constantly changing. The education sessions are provided by local experts and they will be able to identify the current requirements for your situation.
Mortgage loan insurance is insurance provided by Canada Mortgage and Housing Corporation (CMHC), a crown corporation, and GE Capital Mortgage Insurance Company, an approved private corporation. This insurance is required by law to insure lenders against default on mortgages with a loan to value ratio greater than 75%. The insurance premiums, ranging from .50% to 3.75%, are paid by the borrower and can be added directly onto the mortgage amount. This is not the same as mortgage life insurance.
In addition to the down payment, you must also be able to show that you can cover the applicable closing costs (i.e. legal fees and disbursements, appraisal fees and a survey certificate, where applicable).
Mortgages with less than 25% down must have mortgage loan insurance provided by either CMHC or Genworth.
A conventional mortgage is usually one where the down payment is equal to 25% or more of the purchase price, a loan to value of or less than 75%, and does not normally require mortgage loan insurance.
Depending on the circumstances surrounding your bankruptcy and providing you are discharged and have track record of responsible use of credit after the bankruptcy, lenders would consider providing mortgage financing.
Where child support and alimony are received by you from another person, generally the amount paid may be added to your total income before determining the size of mortgage you will qualify for, provided proof of regular receipt is available for a period of time determined by the lender.
Where child support and alimony are paid by you to another person, generally the amount paid out is deducted from your total income before determining the size of mortgage you will qualify for.
Subject to qualification, yes. In fact, even purchasers with 5% down may qualify to buy a home and make improvements to it. Both Canada Mortgage and Housing Corporation and Genworth have insured mortgages available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or improvements that the purchaser may wish to make to the property.
Most lenders will accept down payment funds that are a gift from family as an acceptable down payment. A gift letter signed by the donor is usually required to confirm that the funds are a true gift and not a loan. Where the mortgage requires mortgage loan insurance, Canada Mortgage and Housing Corporation requires the gift money to be in the purchaser's possession before the application is sent in to them for approval. Where mortgage loan insurance is provided by Genworth this is not a requirement.
A pre-approved mortgage provides an interest rate guarantee from a lender for a specified period of time (usually 60 to 90 days) and for a set amount of money. The pre-approval is calculated based on information provided by you and is generally subject to certain conditions being met before the mortgage is finalized.
A professional real estate agent will want to ensure you have a pre-approved mortgage in place before they take you out looking for a home. This is to ensure that they are showing you property within your affordable price range.
The down payment is that portion of the purchase price you provide yourself. The amount of the down payment (which represents your financial stake, or the equity in your new home) should be determined well before you start house hunting. The larger the down payment, the less your home costs in the long run. With a smaller mortgage, interest costs will be lower and over time this will add up to significant savings.
There are ways to reduce the number of years to pay down your mortgage. You'll enjoy significant savings by:
Today, about 50% of first-time home buyers use their RRSP savings to help finance a down payment. With the federal government's Home Buyers' Plan, you can use up to
$25,000 in RRSP savings ($50,000 for a couple) to help pay for your down payment on your first home. You then have 15 years to repay your RRSP.
To qualify, the RRSP funds you're using must be on deposit for at least 90 days.
While using your RRSP for a down payment may help you buy a home sooner, it can also mean missing out on some tax-sheltered growth. So be sure to ask your financial planner whether this strategy makes sense for you, given your personal financial situation.
Along with down payment there will be additional up front or "closing" costs with your purchase of a home. This may be up to 2.5% of the basic purchase price and will include
such items as home inspection; review of condominium documents; lawyer or notary fees. Lastly you will be required to have property insurance in place by the closing date
and you will be responsible for the cost of moving.
Remember, there will be all kinds of things you'll have to purchase early on - appliances, garden tools, cleaning materials etc. So factor these expenses into your initial costs.
The length of mortgage terms varies widely - from six months right up to 25 years. As a rule of thumb, the shorter the term, the lower the interest rate the longer the
term, the higher the rate.
While three to five year term mortgages are what most home buyers typically choose, you may consider a short-term mortgage if you have a higher tolerance for risk, if you have time to watch rates or are not prepared to make a long-term commitment right now.
Needless to say, you'll have financial responsibilities as a home owner. Some of them, like taxes, may not be billed monthly, so do the calculations to break them down into monthly costs. Below you will find a list of these expenses.The Mortgage Payment
For most home buyers, this is the largest monthly expense. The actual amount of the mortgage payment can vary widely since it is based on a number of variables, such as mortgage term or amortization.Property Taxes
Property tax can be paid in two ways - remitted directly to the municipality by you, in which case you may be required to periodically show proof of payment to your financial institution; or paid as part of your monthly mortgage payment.School Taxes
In some municipalities, these taxes are integrated into the property taxes. In others, they are collected separately and are payable in a single lump sum, usually due at the end of the current school year.Utilities
As a home owner, you'll be responsible for all utility bills including heating, gas, electricity, water, telephone and cable.Maintenance and Upkeep
You will also have to cover the cost of painting, roof repairs, electrical and plumbing, walks and driveway, lawn care and snow removal. A well - maintained property helps to preserve your home's market value, enhances the neighbourhood and, depending on the kind of renovations you make could add to the worth of your property.
A longer-term mortgage is worth considering if you have a busy life and don't have time to watch mortgage rates. Our 4, 5 and 7-year mortgages let you take advantage of today's rates, while enjoying long-term security knowing the rate you sign up for is a sure thing.
If you want to keep your mortgage flexible right now, you can explore a shorter-term mortgage that usually allows you to take advantage of lower rates and save.
The interest rate on a fixed-rate mortgage is set for a pre-determined term - usually between 6 months to 25 years. This offers the security of knowing what you will be paying for the term selected.
A variable rate mortgage has payments that are fixed for a period although interest rates may fluctuate from month to month depending on market conditions. If interest rates go down, more of the payment goes towards reducing the principal; if rates go up, a larger portion of the monthly payment goes towards covering the interest.