By Jennifer Lynn Walker
There are many tools available to help you evaluate your financial situation and make your dream of becoming an owner come true.
Borrowing Capacity and Preauthorized Mortgages
When you start to look for a property, it is in your best interest to determine your borrowing capacity. That way, you know what type of property to lean towards during your search. One approach is to get a preauthorized mortgage before even finding your property. Thanks to a preauthorized mortgage, you already know how much you can borrow; your interest rate and he amount of each payment. You will be able to find a property that matches our means.
Mortgage Loan Insurance
The Home Buyers’ Plan
Neither the buyers nor their spouse or common-law partner can have been owner of a property serving as their main residence during the five years preceding he request for withdrawal. In addition, buyers must have finalized a written agreement for the purchase or construction of a property (offer to purchase or preliminary contract) before being entitled to withdraw the funds from the RRSP. For further information about eligibility, contact the Canada Revenue Agency or your financial institution.