liquidsuite

Hi how are you all, I need some help regarding something. I was approved a few months ago by my bank based on 10 percent down I can look for a house for around 340-360k. But just recently I have heard a new law will be passing where home buyers will have to pay the full 20 percent down to buy a house. First I want to know of this is true and if it is will that mean even as a first time home buyer 10 percent will not be good enough.

Is there any website showing information about this new rule. Any advice regarding this would be great thanks.

jericho

The 20% doesnt apply to first time buyers. AFAIK, it applies to buy-to-let type mortgages and refinancing.
I'm going through a mortgage now with only 5% down.

el_richo

What does your bank say?

liquidsuite

Ok so I can relax a little bit then. I was really worried maybe my 10 percent will not be good enough. My bank would only ok me on condition of 10 percent last time I met the morgage specialist from RBC. I am in ontario so hopefully in 3 months if I am ready to go for house the same conditions will apply. It would be really nice to go for it with just 5% percent down.

Has anyone had any luck getting $5 percent down in toronto. I have not tried going to other private mortgage companies yet.

Mr Bean

I know an amazing mortgage consultant. If you want the details you can PM me.

agr

As one who has experienced negative equity in the past, may I say that you have a market outlook that is either rosy or long-term.

iaink

The down side to only a 10% downpayment is the CMHC insurance premiums...


Didnt realise the new rules didnt apply to 1st time buyers. Are they not as vulnerable to overstretching as anyone else?

helcat12

Just want to add that (here in BC, anyway) you do not count as a first time buyer if you have ever owned a property anywhere in the world.

This might sound self-evident, but I have met quite a few people who think that it means first time home buyers in Canada so I thought it might be worth just making it clear.

el_richo

Interesting. We were told different.

helcat12

Really?
Well, that is a bit odd!
How long ago was that?

I will make some further enquiries, as we made it very clear that we were buying for the first time in Canada.

If it is true that we count as first time buyers, then they owe us back a big wodge of tax, which would be excellent!!!!

agr

We are buying in BC right now. It seems quite clear that the BC government's $10k grant only applies if you have never owned a house anywhere in the world before, whereas the HST rebates (federal and provincial) apply only if you are buying a new or substantially renovated home as a primary residence (first-timer status irrelevant).

Edited to add: mortgage regulations as they apply to first-time buyers may have a different definition.

el_richo

It was a few weeks ago. I asked for them to double check and they confirmed. We're meeting with another advisor next week so will get a second opinion.

agr

The Federal government seems to still have a First Time Home Buyer (FTHB) tax credit, with its own eligibility rules (preceding four years):

http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

And the BC Government also has a FTHB scheme giving relief on property transfer taxes, but it has different eligibility criteria:

http://www.sbr.gov.bc.ca/documents_l...ns/ptt_004.pdf

No potential homeowner shall be left unincentivized!

el_richo

Thanks for the links

helcat12

So, having owned our home in the UK we do not qualify for the BC Government tax rebate, but how are we fixed for the Federal one?

Our home has been renovated and it was acquired as our first Canadian home purchase two weeks ago!