First-Time Home Buyers
As a First-Time Home Buyer (FTHB), the federal and provincial government offers you a raft of incentives to help you acquire your first home.
The Canadian government offers a raft of First-Time Home Buyer incentives to help you acquire your first home. The most notable incentives are:
By using these programs, they can boost your down payment, leading to lower payments over the amortization period.
It’s absolutely crucial that FTHBs are aware of the programs and utilize them well, and this is where Ontario Mortgage Memo can help.
Also, here’s a fun fact: you don’t have to be an actual first-time home buyer in order to qualify as a FTHB! If you did not live in a home that you owned or your spouse or partner owned in the current year, or in the 4 previous calendar years, or you have a spousal breakdown, you may still qualify for these programs.
Purchases
A new home requires a new mortgage.
A new home typically requires a new mortgage.
In order to have access to the largest mortgage possible, I will need to calculate your debt services ratios (known as the GDS and TDS) and the Loan-To-Value (LTV) of the prospective mortgage to connect you to the ideal lender and get you a low rate. I will look at the whole picture and consider everything from purchase price, potential down payment, closing costs, current debts and future goals.
For those with a low credit score or unpredictable income, I can connect you with lenders that are particularly suited for clients in your stiuation. I would be happy to discuss your situation and find options for you.
Refinances, Switches or Transfers
Sometimes, the grass really is greener on the other side.
Refinancing means to increase the size of the mortgage or renegotiate it in some fashion.
More than 60% of borroweres end up breaking their 5 year term early.
When is it advantageous for you to refinance your mortgage? Here’s some examples:
You want to access home equity (i.e. for renovations, vacation, unexpected expenses)
Your credit score has improved or your income has increased, possibly giving you access to better rates
Your life has changed, and a refinance would better suit your new situation
You want to add or remove someone from the mortgage policy.
However, there are costs to breaking your mortgage contract if it’s not the end of your term, known as prepayment penalties. I can help you find out what rates are available to determine whether that cost is ultimately worth it.
As a borrower, you can also switch to another lender that offers you a better mortgage. You keep the mortgage amount and amortization, but move to a different lender.
If you are moving to a new home, you may be able to port your mortgage, allowing you to take your current mortgage terms (including your existing interest rate and remaining term) and move them to the new home. This is highly beneficial if you have a favourable rate.
Debt Consolidation
There are a variety of mortgage solutions to help you manage or consolidate debt.
Canadians’ debt levels remain elevated, with credit to disposable income levels near the 2023 high, which saw credit levels at 1.87 times disposable income.
With Covid-era supply chain disruptions, quantitative easing, and now the energy disruptions from the Middle East, Canadians have hardly had a break from the [pernicious] effect of inflation. If you are struggling with debt, just know that you are only one of millions. [Appeal to the fact that everyone is struggling, be accessible].
If you are in this situation, I may be able to help, particularly regarding your mortgage, which is usually the largest household expense [your home is also your largest asset or resource and accessing the equity can help pay off high interest debts at a lower rate]. [Make it clear that I am hear to help long-term, and that debt is a very common issue for Canadians.]