The First time home buyers are most vulnerable to unprofessional representation. The reason is their lack of knowledge on how the home buying works and what are the duties of the agents representing them. Get loads of information in this blog and if there's a question which is not answered elsewhere, ask me here.
Showing posts with label Mortgage Calculation. Show all posts
Showing posts with label Mortgage Calculation. Show all posts
Join this Webinar, Enrich your knowledge and make the right decision
Paul Cheema* would love to share his professional knowledge with the first time home buyers and discuss the Canadian Federal and Provincial rebates and programs with them in this Webinar. The participation is purely FREE and you can register online.The event details are as follows:
Should you buy from seller directly? What's at risk?
Can you afford to omit home inspection?
What legalities are involved in a home purchase?
How does mortgage works for first time buyers?
Options for Newcomers to Canada.
Q/A session
This is going to be one of the kind webinar that was never heard before. We would like to involve our audience in an highly interactive session and share pure knowledge. No purchase is necessary. Please REGISTER now! You will be happy that you did join this webinar.
You can also join by scanning the QR code below:
Scan this Code with your smartphone to Automatically directed to webinar registration page .
As a newcomer to Canada, it is important for you to understand how credit works and to build a good credit rating. The first step is to start building your credit history as soon as possible
Building Credit
When you apply for a new loan, you will hear most of the stuff like credit rating! Astonished!? This credit history of an individual plays a very big role in helping him buy big ticket purchases like real estate in Ontario, cars and the like.
What is credit history?
The credit history means your shopping behaviour, personal spending habits and/or your payment history. In Canada and US, your credit rating affects on your credibility when you go for buying big purchases like a home or car or business financing.
When you keep paying your credit card and other bills outstanding you keep on increasing your credit score. The credit score is mathematical representation of your good economical behaviour.
Building Credit History
In order to help you build a credit history in Canada, you will need to apply for credit. One of the best ways to do this is to apply for a credit card. One of the challenges that most newcomers face is getting approved for a credit card. Since most newcomers do not have a credit history in Canada, finding an institution that will lend them money is difficult. As a result, building a credit history can be hard, at first.
The financial institutions, like banks, may give you a secured credit card at first. You should go for it as this is the easiest way to start building your credit. It gives you all of the advantages of a credit card, but requires that you set aside a certain amount of money or other cash-like asset to provide the bank with the security that you will pay the money back. For example, if the bank gives you a secured credit card with a spending limit of $1,000, you could set aside $1,000 in a short-term investment, which the bank will hold as security. Over time, you can build your credit history by paying your credit card bills on time, and eventually your credit rating should be high enough that you can confidently apply for and be approved for an unsecured credit card.When it comes to value and convenience, credit cards are a useful way to pay for everyday purchases—most retailers in Canada will accept them. There are also situations when a credit card may be the only way to pay: for example, when buying items online. Some services, such as car rentals, also require payment by credit card. So getting a credit card and managing payments can help in building your life in Canada.
Do you need any help?
If you need any help in applying for these credit cards, you can contact me through my website or give me a call.
Buying a home in Ontario with the Right Real Estate Sales Representative can be Exciting , Fun, and Assurance for life.
Buying a new home?
It doesn’t have to be hard. Buying your first home can be a very exciting time! With tons of things to know and learn however, it can seem overwhelming. Which is why Paul Cheema is doing his very best to simplify the whole process. What you want to know, what you need to know, and perhaps a few things you've never even considered.
Neighborhood and Type of House??
What neighborhood you’re interested in? Single detached or townhome? Square footage and upgrade packages? If you’ve never purchased a home before these are things you may never even know you had to think about.
It may sound like a simple question but it seems to be the most obvious: where do you want to live? Consider the city’s convenience versus more relaxed rural settings. Suburbs versus downtown. As a rule, considering the needs of your family is the best way to decide where to live. In fact, a recent study by found that 90% of first-time buyers settled on the neighborhood where they wanted to live before choosing the actual home they wanted to buy.
What type of home to buy?
Once you know where you want to live you need to decide what you want to live in. Detached, semi-detached, townhome, condo? Semi-detached homes or townhomes are usually less expensive than comparably sized detached single family dwelling. If having neighbors close to you are OK then this is perfect. If you prefer a little more space to call your own however perhaps a detached home would be more to your liking. The Detached appreciate more in value than the Semi-detached because of more units sale compared to Semis. Condos are great if you’re looking for extensive fitness and social amenities but remember, you pay for them in the initial cost and in the monthly condo fees, whether you use them or not.
Figuring out what you can afford
The easiest way is to figure out what you can afford is by examining your income, expenses, investments, savings and debt. When you do that, try to keep in mind inevitable expenses such as a wedding, new car, etc., etc.) And always keep a little extra for items such as legal fees, real estate agent fees, land transfer fees, and mortgage insurance to name but a few. To get an approximation of how much you would be paying, you can use these mortgage related calculators.
New home buyer's RRSP Plan
This program simply allows prospective homebuyers to borrow money from their own RRSP's to buy a home. Similar to a loan this money must be paid back within a specified time frame. You must be an RRSP holder, a resident of Canada and a first-time homebuyer to qualify. The plan allows you to withdraw up to $20,000 tax free from your RRSP to purchase your home, provided it is paid back within 15 years. If these funds are going to be used for a down payment they must have been deposited at least 90 days before you sign your agreement of purchase and sale. Both you and your spouse may withdraw up to $20,000 for a total of $40,000. To apply, talk to your bank or contact:
Canada Customs and Revenue Agency
1-800-959-8281, New home RRSP Plan
CMHC (mortgage insurance)
Many first-time buyers face unique financial challenges along the way. We know saving up for a down payment in these expensive times can be difficult, and every penny counts. Luckily there are a variety of programs available from both the provincial and federal governments to help simplify and make the process much easier.
For more info, speak to your bank or visiting CMHC website.
Home land transfer tax refund
This program applies to newly-built or Re sale (Old) homes and gives eligible purchasers a refund of their land transfer tax up to $2,000 based on the purchase price of their home. To be eligible, you and your spouse must be first-time home buyers.
Whatever home you choose, whichever route you take, buying a new home is one of the most exciting and dynamic experiences of your life. So have fun and remember if you have any questions, the expert Paul Cheema is just a phone call away!
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