Using RRSP for Down Payment (Home Buyers’ Plan)
What is The Home Buyers’ Plan? How can I use my RRSP as a down payment when buying my first home? Your questions answered. READ MORE
Cost Effective DIY
How can you ensure a do-it-yourself home renovation won’t end up costing you an arm and a leg (figuratively and literally!). Here’s some DIY best practices. READ MORE
Seller’s Market vs. Buyer’s Market
Buy first, or sell first? This is one of the biggest stresses for sellers. Unless you time both the purchase and sale perfectly, you could end up in one of two scenarios: living in a motel temporarily, or paying two mortgages at the same time. Here are a few things you can do to avoid this dilemma. READ MORE
For Sale by Owner
The private sale of homes is becoming fairly common with advances in technology and an increase in For Sale By Owner (FSBO) companies. How does it work and is it worth it? We have the answers. READ MORE
Refinancing your Mortgage
All about mortgage refinancing. What it is, when you need to do it and the benefits. READ MORE
Mortgages for New Canadians
Over the last few years access to banking products and services has become even more complex given new laws and regulations designed to prevent money laundering. For newcomers to Canada, securing a mortgage can be a bit tricky. Here’s what you need to know. READ MORE
Our First Time HomeBuyer's Guide is a series of 14 daily emails that will take you through each step of this exciting process. Think of it like a two week boot camp to get you into shape for buying your first home.
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BANK OF CANADA RATES
A reference interest rate used as a basis for other lending rates, such as variable-rate mortgages and personal loans. Each bank will have their own Prime Rate (they all tend to be fairly similar), the Bank of Canada will discount the lowest and the highest of these rates, then take an average of the three remaining to calculate Canada's Prime Rate.
Qualifying Rate: 5.44%
When you are looking for a variable rate mortgage or a fixed mortgage with a term higher than 5 years, you will likely need to qualify at a rate often higher than the actual rate you are applying for. This helps the lender ensure that if rates go up, you will still be able to afford your mortgage payments. All variable and 1- to 5-year fixed mortgages with a down payment of less than 20% will be qualified using the Bank of Canada posted 5-year fixed rate.
