When you purchase an Edmonton home, it is most likely one of the biggest financial decisions you will ever make. It’s a long-term commitment and finding the perfect mortgage may seem daunting. Our goal is to make the process as smooth and simple as possible so you can focus on the fun part of finding the perfect home. The most important thing is that you choose a mortgage product that meets your financial goals and a mortgage payment that you will be able to keep up with. There is nothing worse than feeling house poor and not having the funds to enjoy life. It is important to make sure you have a life outside your mortgage.
What is a Home Purchase Mortgage?
A mortgage to purchase a home in Edmonton or area is typically offered with some sort of fixed or variable interest rate. Typically, it is paid on a monthly basis with a portion of the payment going to the principal amount and a portion going to pay interest to the bank. Over time, as the principal is paid down, the interest is calculated on a smaller base so that future payments count more towards the principal rather than the interest charges. You can also chose to pay weekly, biweekly, or semi monthly. Choosing frequent payment types allows for a quicker mortgage pay down. This saves thousands in interest charges.
Variable Interest rates are based on the Bank of Canada Prime lending rate. As the prime lending rate changes so can your variable mortgage payments. These payments can either increase or decrease as the Prime lending rate changes. The Bank of Canada meets 8 times a year to discuss whether the Prime lending rate will remain the same, increase or decrease. Fixed mortgage rates are based on the bond market. As the bond market moves, this is what affects a change in fixed interest rates.
Benefits of a Home Purchase Mortgage
A home purchase mortgage is one of the most common forms of debt, and it is also one of the most advised. Home purchase mortgages come with lower interest rates than almost all other kinds of debt. When you acquire a home purchase mortgage, you are making an investment in your financial future. The property you purchase with your Edmonton mortgage will be one of the few items you will ever purchase that can appreciate in value over time. Properties typically appreciate over time and your mortgage principal is being paid down each year. This is an amazing forced savings plan to help create future wealth for you.
Why Work With a Broker?
Acquiring your ideal home purchase mortgage is not always a simple task. You will need to meet with banks and lenders, sharing all of your personal and financial information in the hopes that they will approve you for the funds you need at a reasonable rate and then guide you through the process.
When you work with us, your Edmonton Mortgage Tailors team, we see you more than just a client. We are dedicated to making every mortgage a relationship that will last a lifetime. We strive to provide top funding at the very best available interest rates. We strive to make sure that our customers are never left in the dark about their mortgage details. We will continue to grow our relationship and guide you through our Mortgage Management system to make sure the mortgage product you choose is always getting you closer to your financial goal.
We have even developed a program that could help you pay off your mortgage in 16 years rather than the normal 25. It is our Sweet 16 program. You just have to be willing to follow our proven system.
There are two programs of significance in todays market. The first is the First Time Homebuyers Plan which allows buyers to withdraw up to $35,000 from their RSP’s for the down payment without paying tax on it. You have 15 years to repay it back otherwise you will be taxed on the amount withdrawn. This applies to joint applicants as well as long as they are both First Time Homebuyers. For more information about the HBP, visit Canada Revenue Agency’s website.
The second is the First Time Homebuyers Incentive. This program allows an additional 5% for down payment on a resale home and either a 5 or 10% additional down payment on a new home purchase. This is for insured mortgages only. This is a shared equity program. The Government shares in both the increase in your property value or the decrease in property value. It is registered as a second mortgage on your properties title. It must be paid back when the property is either sold or once you reach the 25 year amortization. This program is only available for first time homebuyers who have not owned a home in four years. For more information on whether this shared equity program is right for you, please visit: www.placetocallhome.ca
What We Bring To The Table
- Home Purchase Advice & Services
- Shop all the Banks
- Lowest Rates
- Self-employed / New to Canada
- Lower your monthly payments
Looking for more information about home purchases in Edmonton? Mortgage Tailors are your local Edmonton mortgage brokers. We help with Edmonton Home Purchases and securing the best Edmonton mortgage products. Call us on 780.244.0505 or apply online today!