Blog Archives

What is a conventional mortgage?

March 27, 2013

It’s a mortgage where the down payment is equal to 20% or more of the purchase price. That means you’ve borrowed 80% or less of the purchase price, so you don’t necessarily (more...)

Can I use my RRSP to help buy a house?

March 27, 2013

Yes: about half of first-time homebuyers dip into their RRSPs to help finance a down payment. Under the federal government’s Home Buyers’ Plan, you can use up to $25,000 in RRSP savings (more...)

Can I use cash gifts as a down payment?

March 27, 2013

Yes, but the lender may ask for written confirmation from your generous family member that the funds really are a gift and not a loan. If you need mortgage loan insurance, CMHC (more...)

What’s a down payment?

March 27, 2013

It’s the portion of the purchase price that you furnish yourself: your initial equity in your new home. The larger your down payment, the less your home will cost in the long (more...)

What does pre-approval mean?

March 27, 2013

It means you’ve got a guaranteed interest rate from a lender for a specified period of time (usually 60 to 120 days) on a specified amount of money. It’s not a guarantee (more...)

How much can I afford to pay for a house?

March 27, 2013

YOU NEED TO FIGURE OUT THREE THINGS: Your gross monthly income: the combined monthly salary and any other income—from investments, etc.—before taxes and deductions, of all people buying the property. Your monthly (more...)