Читать книгу Complete Home Buyer's Guide For Canada - Geraldine Santiago - Страница 32

For most people, the hardest part of buying a home is saving enough for a down payment, especially those who are first-time home buyers. If you have less than 25 percent of the purchase price to put down, you will be required to purchase mortgage insurance through your lender. Mortgage insurance protects your lender against payment default.

CMHC mortgage loan insurance has made home ownership possible for millions of Canadians. By providing mortgage loan insurance, CMHC enables you to finance up to 95 percent of the purchase price of a home. This means that you can buy a property with as little as 5 percent down payment. So, if the home you are purchasing is $125 000, you would need a down payment of $6 250. (Note: Lending policy may vary from time to time.)

If you are buying a single-family dwelling, you can take advantage of CMHC’s 5 percent down payment. When buying with 5 percent down, the following rules apply:

• The home will be your principal residence.

• The down payment of 5 percent is from your own resources or a gift from your family.

• You are able to cover the closing costs of approximately 1.5 percent of the purchase price.

• You have a good credit and a minimum of one year’s employment with your current employer.

• All your housing payments, including mortgage payment, property taxes, heat allowance, and 50 percent of condo maintenance fees cannot exceed 32 percent of your gross taxable income.

• All your consumer debt, loans, and housing-related payments cannot exceed 40 percent of your gross taxable income.

For more information on home buying with a 5 percent down payment or the price ceiling in your area, log on to www.cmhc-schl.gc.ca.