Saving for your home

The first step is to save money for the down payment (the initial upfront portion of the total sales price) and figure out how much you can afford. The larger the down payment you make, the smaller your mortgage will be and the less interest you'll pay over the life of your mortgage. A typical down payment is 20% of the purchase price of the home. Save up this amount and you'll be eligible for a conventional mortgage. You can, however, buy a home with less than 20% down or no money down. This type of financing, called a high-ratio mortgage, requires you to purchase insurance from Canada Mortgage and Housing Corporation (CMHC) or Genworth. You can pay the associated application fee and premium upfront or add it in to your overall mortgage. Premium varies depending on Loan-to-Value (LTV) ratio and amortization.

For more information for First-Time Home Buyers contact Eden Williams @ 416-483-4337 or edwilliams@trebnet.com or www.EdenWilliamsHomes.com.  Contact me for a copy of my newsletter Real Estate in Black & White.