A Glossary of Mortgage Terms and Their Definitions for New Home Buyers

A Glossary of Mortgage Terms and Their Definitions for New Home Buyers

 

Buying your new home is an exciting new adventure! As with every new adventure, there may be some new terminology that you may not be familiar with. This handy guide can inform you as you complete your mortgage documentation. Don’t forget – you can always contact the friendly folks at Ownest for any additional information or help relating to your mortgage application!

 

Adjustable-Rate Mortgage

Adjustable-rate mortgages, or ARMs, are also known as variable-rate mortgages. ARMs have flexible interest rates, meaning that the interest rate on the mortgage will vary based on an underlying index and the prime interest rate set by the lender. (Also see Variable Rate Mortgage)

Affordability

Your ability to carry the cost of ownership of a property in relation to your available income.

Amortization

A fancy way of saying the process of spreading out payments over time. You pay your mortgage over time by way of instalment payments which usually include principal and interest. At the start of your loan period, most of your payment goes towards interest, but over time you chip away at the principal. (See Principal and Interest.)

Amortization Period

The period of time required to repay your mortgage by equal instalments of set payments based on a particular interest rate. The payments are usually a combination of principal and interest in blended amounts.

Amortization Schedule

A table showing the amount of principal and interest in each of your payment instalments and the outstanding principal balance of the loan after each payment is made.

Annual Percentage Rate

Annual percentage rate (APR) is the interest rate that you will pay annually for your loan. It includes additional lender fees. It is usually expressed as a percentage. If you see two interest rates when you shop for a loan or mortgage, the higher rate is your APR.

Applicant (Mortgage)

Refers to all borrowers, co-borrowers and guarantors on a mortgage loan application.

Appraisal

An unbiased opinion by a professional of your home, based on your home’s physical and functional characteristics and the value of homes nearby. Mortgage lenders require an appraisal before they will grant you a mortgage on your home.

Balance

The amount of unpaid mortgage left after a payment has been made.

Blended Payments

Blended payments are a way of repaying a loan that sets equal monthly payments of principal and interest (blended) over an amortization period. By contrast, in a “principal and interest” loan, the borrower pays back the same amount of principal each month, plus a steadily decreasing interest payment.

Borrower

The one who obtains financing from a lender with the agreement that it will be repaid, with interest, within a defined timeframe. You are the borrower if you are getting a mortgage.

Canada Guaranty

A leading private mortgage insurer providing mortgage default insurance.

Canada Mortgage and Housing Corporation (CMHC)

The federal crown corporation that established mortgage default insurance for lenders and which promotes the construction of new homes, the repair and modernization of existing houses, and the improvement of housing and living conditions. (See also Canada Guaranty and Genworth)

Closed Mortgage

A closed mortgage is one that cannot be fully paid off, refinanced or renegotiated before the end of the term without incurring a penalty. Lender breakage costs, the opportunity cost to a lender of a borrower repaying a loan before scheduled maturity, will incur a payout penalty.

Credit Report

A record that details an applicant’s past borrowing and repayment history, and which is the reason for their credit score. Lenders often obtain borrower’s credit reports from Equifax and Trans Union.

Credit Score

Your credit score is a three-digit number that comes from the information in your credit report. It shows how well you manage credit and how risky it would be for a lender to lend you money. Your credit score is calculated using a formula based on your credit report.

Debt Ratio

Also called debt-to-income ratio or debt service ratio, it’s a comparison of your total monthly payments to your income. It is used to determine how much of a mortgage you can afford as a borrower. It’s the percentage of your income that goes toward paying your monthly debts, and it helps lenders decide how much you can borrow. (Also see Gross Debt Ratio and Total Debt Service)

Down Payment

The part of the purchase price of a home that the buyer pays in cash and does not finance with a mortgage. The minimum requirement in Canada is five per cent and can be from your own resources (cash, savings, investments) or be gifted or borrowed from a credit card or line of credit.

Fixed-Rate Mortgage

A fixed-rate mortgage is one in which the interest rate remains the same over the whole term of the mortgage.

Floating Rate

A floating (aka variable or adjustable) mortgage rate refers to a mortgage that does not have a fixed rate of interest over the life of the instrument but rather floats with the market.

Genworth

A leading private mortgage insurer providing mortgage default insurance.

Gross Debt Ratio

A ratio that is the percentage of your income needed to pay all of your monthly housing costs, including principal, interest, taxes, and heat (PITH). It also includes 50% of your condo fees, if applicable. The percentage can vary by lender.

Interest Rate

The amount charged by a lender to a borrower for the use of borrowed funds, calculated as a percentage of the principal.

Lender

The bank or other institution responsible for underwriting, funding, and administering your mortgage loan and to whom your real estate is pledged as security for the loan. (Also see Mortgagee)

Maturity

The end of a term, or period, for a mortgage loan at which time the borrower may have the option to pay off the mortgage, renew it with the existing lender or transfer it to another lender. The maturity date of a mortgage is when the mortgage term ends. It is often referred to as the renewal date because it’s when you as the borrower may have the option to renew, refinance, or pay your mortgage off completely, with no penalty. (Also see Mortgage Renewal)

Mortgage

A mortgage is a type of loan used to buy a home or other property. It allows the lender to take possession of the property if you don’t repay the loan on time. The property is the security for the loan. The payments cover the interest on the loan plus the principal (the amount of the loan).

Mortgage Insurance

A credit risk management tool protecting the lender from losses due to default on the mortgage by the borrower. It is typically required when the loan to value ratio for the property is 80% or greater.

Mortgage Pre-Qualification

A pre-qualification gives you an estimate of ow much house you can afford, based on your credit information, gross household income and overall finances. It does not require supporting paperwork.

Mortgage Pre-Approval      

The tentative approval for a mortgage, made in advance of a home purchase. It is valid for a specified time period and is subject to the borrower submitting their supporting documentation to the lender, and subject to their financial position not changing. Once a property has been purchased, the property must also meet the lender’s underwriting requirements.

Mortgage Renewal

The process by which a borrower agrees to another mortgage term with the current lender to replace the term that has matured. At the end of the prior mortgage term, and with a balance of funds still owing, the borrower may choose to continue with the same lender for another term. However, the details of the mortgage document may change at the time of the mortgage renewal to reflect the current mortgage market. The new term leaves the existing registered mortgage in place and is therefore not considered a new mortgage. The old mortgage document secures the renewed term, and its provisions are amended to fit the new term.

Mortgage Statement

A statement received from the lender that includes details of the mortgage such as property address, outstanding principal balance, monthly payment, interest rate and mortgage term.

Mortgage Term

The period for which the lender loans funds to the borrower, as specified in the mortgage agreement. At the end of the mortgage term, the principal and unpaid interest are due and payable by the borrower to the lender. At that time, the borrower may renew or refinance the mortgage. (Also see Mortgage Refinance and Mortgage Renewal)

Mortgagee

An individual or organization that lends money secured by real property for which they may receive specified payments according to the mortgage agreement. (Also see Lender)

Mortgagor

The borrower in a mortgage, typically the home buyer. The mortgagor makes specified payments according to the mortgage agreement. (Also see Borrower)

Open Mortgage

A mortgage that can be paid off early without any penalties or fees attached.

Principal (Mortgage)

The amount of funds originally borrowed from the lender or the portion of a mortgage still owing upon which interest is calculated.

Qualifying

The process of determining a prospective borrower’s eligibility for mortgage financing related to a potential real estate purchase. (Also see Mortgage Pre-Approval)

Term

The period for which the lender loans funds to the borrower, as specified in the mortgage agreement. (Also see Mortgage Term)

Total Debt Service (TDS)

The percentage of the borrower’s income that is needed to cover housing costs (GDS) plus any other monthly obligations that an individual has, such as credit card payments and car payments. The percentage can vary by lender. (Also see Debt Ratio)

Title

A document that records the information about the land, such as the legal land description, municipal jurisdiction, ownership, and registered interests. The Land Titles Office no longer issues a paper Certificate of Title, but a paper copy may be available from any Registry Agent in Alberta. An electronic copy is available on the Spatial Information System (SPIN) operated by Alberta Registries, Service Alberta.

Variable Rate Mortgage

A mortgage where the interest rate is periodically adjusted based on the prime lending rate typically set by the lender. Rather than being a Fixed Rate Mortgage, which has the same interest rate over the term, when an interest rate change occurs, payments may be increased or decreased. (Also see Floating Rate)

 

Do you have mortgage-related questions? Feel free to contact us and one of our friendly in-house experts will be happy to help!

 

Meet the Team – Audrey Wilson

We’d like to introduce you to some of the great people who work behind the scenes at Ownest. We recently spoke to Audrey Wilson,
VP Operations and Ownest’s Broker of Record.

 

1. Tell us about your role at Ownest.

My role is VP Operations which is in my opinion a great role to have as I get to work with every area of the company and facilitate the how and why of every project as well as the overall Ownest product. I work closely with our CEO, CRO and CTO, each team manager and connect with each team member on some level. I guess you could say that I’m the center hub of the company.

2. What did you do before you joined Ownest? What interested you in Ownest?

I have been in the Financial/Mortgage Industry since 2003. I started out as an administrative assistant-underwriter-operations manager, and I’ve been with Ownest from the beginning and have worked with our CEO since 2003. I have always been involved in various business areas of sales, marketing & promotions, and building strategies through process in my life so far.

Ownest is innovative and always striving to solve current problems in industries. As a company, they are not afraid to try something new, willing to reinvent themselves by balancing other businesses and people’s needs. I am very fortunate to have the opportunity to work for an innovative company that aims to disrupt the traditional financing industry as we know it.

3. What do you like most about working here?

Working with an amazing group of people who are team members but also are family members. Everyone is considered to be part of a family and we are respected. We all are valued as individuals, as teammates and I love that our voices are heard!

4. What excites you most about the future of Ownest?

This company has huge potential to do great things, always evolving through learning and listening through its partnerships and what is going on in the world today not just in the financial industry. Looking to define the future of financing.

5. Which of the Ownest Values do you most identify with, and why?

To be honest it’s really hard to pick one. Fun would be the #1 because if we are not having fun, enjoying life, the people we work with then change needs to happen. Everyone must love who they are and enjoy everything offered by life.

6. Tell us about your life outside of Ownest.

I grew up in a small farming community, born and raised Albertan and come from a family of 5 kids with 4 brothers and myself. Being the only girl and the middle child, helped me hone my observational and negotiation skills. I guess you could say I was right in the middle – or in the hub – of that dynamic, too.

I have been blessed with one amazing daughter who is now a teenager… She is my world and I am grateful to have this life journey with her. Plus, I am looking forward to these years as I know how I challenged my parents at that age. Hopefully, there is no payback (haha).

I love to travel and have been fortunate to spend time with family in my travels as well as on my own. Some of my favorite places were Hawaii, Greece, Thailand, Scotland, and Turkey – just to name a few. I have a very large travel bucket list with the goal of getting to as many as I can. I want to venture to places like New Zealand, Spain, Portugal and Argentina because I love food and to experience different cultures and their history.

7. Any hidden talents?

My memory is like (probably better than) an elephant. If you want to know something even if it’s 5-10 years ago, what day, what time and the conversation around a circumstance, then ask me. My family probably has stopped disagreeing with me about past events – they know what they’re up against.

8. Who inspires you or which company do you admire (and why)?

People inspire me! I love to learn different ways of thinking, looking for the good in all. My youngest brother Jonathan is a huge inspiration to my family as he lives in the moment every day and shares unconditional love with everyone he meets.

Others who inspire me are: Carl Jung, Brene Brown, Joe Dispenza, Don Miguel Ruiz and Albert Einstein because they challenge us to think “why and how” and bring awareness that causes me to seek to understand. One of my favorite quotes by Maya Angelou: “You are only free when you realize you belong no place- you belong every place- no place at all. The price is high. The reward is great.”

9. What piece of technology can you NOT live without?

My computer for sure! It holds my life!

10. If you had a superpower, what would it be?

This is a tough one. I’d love the ability to read others minds and know what they are feeling.

11. Anything else you’d like to share?

I love to curl (and watch curling), motorcycles, reading so many books, dance like no one is watching and spending time with the people I love!!! I am also a strong believer in listening to my intuition.

This year, I decided to jump out of my comfort zone by challenging myself to do something that I was too afraid to ever do and stated for years that I would never ever do: Skydiving.

It took me 25 minutes to reach the altitude of 13,500 ft and only 8 minutes to land safely! It was the most amazing thing I have ever done in my life and it really forced me to step outside of my comfort zone. This experience helped me realize that sometimes you just have to trust yourself at all times and know “I’ve got this.” I’m confident that I can handle anything when I put my mind to it!

The Five Cs of Credit and Why It Matters

The Five Cs of Credit

and Why it Matters

 

What Are the Five Cs of Credit?

The five Cs of credit is a set of criteria used by lenders to gauge the creditworthiness of potential borrowers. This type of approach weighs five different characteristics of potential borrowers and conditions of the loan, to help predict the chance of potential default and overall risk or loss for the lender.  The Five Cs are: Collateral, Credit, Capacity, Capital and Character.

Ownest's software verifies credit using the Five Cs of credit

 

Why is it Important to Use the Five Cs of Credit?

Evaluating a borrower’s creditworthiness based on the Five Cs of Credit is important because it gives the lender a better overall picture of the borrower and their ability to pay off the loan. It also takes into consideration the more “personal” side of financing by considering the borrower’s character, as opposed to simply looking at past credit history and collateral. For example, if the credit check reports a default payment, it could have been due to unique or rare circumstances, such as an illness or divorce. These types of questions will help lenders understand the borrower’s credit – looking back to the credit history and looking forward to the client’s future capacity.

Save Time: Ownest’s Software Automatically Calculates the Five Cs

One of the biggest challenge when it comes to financing is knowing the actual creditworthiness of a potential purchaser or borrower. For example, if someone is interested in purchasing a home, the sales associate spends a lot of time with the customer during the sales journey. Waiting for a mortgage approval can take 7 – 10 days, and in the meantime, your sales team is spending valuable time building a relationship with a client who may not be approved for financing.  Wouldn’t it be nice to know this information at the beginning of the sales journey?

Ownest’s Pront-O app instantly pre-qualifies and intelligently screens
applicants based on their actual borrowing ability.

 

 

The software performs a soft credit check using the Five Cs of Credit, then sorts and ranks the leads by  summarizing the information in an easy-to-read stoplight snapshot (green, yellow, red rating system). This data  empowers our affiliate and lender partners with key insight and visibility of the borrower’s overall credit profile – faster and more accurately than any other software on the market – so you know where you’ll get the best return for your sales efforts.

 

How Much Time and Money Will You Save?

 

Whether you’re a lender or a company that offers financing for your products, Ownest software can provide valuable insight and streamline your sales process. Pronto’s pre-qualification capabilities are just one of the many features of our revolutionary software. Contact us to schedule a demo today!

Request a demo of Ownest Software

 

New CMHC Lending Criteria

Ownest has in-house mortgage experts

 

 

On June 4, 2020, CMHC announced changes to their underwriting criteria, which will impact sales in some parts of the new home sector. How does this affect home builders, realtors, mortgage brokers – and home buyers?

What are the changes?

  • Credit score requirement increasing from 600 to 680 Beacon;
  • Flex down mortgages are no longer available (no more zero down mortgages);
  • Stricter Debt Servicing Requirements.

When do these changes take effect?

  • July 1st, 2020

Why are they Changing the Criteria?

  • The COVID-19 pandemic, related job losses, business closures and a drop in immigration are adversely impacting Canada’s housing market.
  • CMHC states that these actions will protect home buyers and reduce government and taxpayer risk while stabilizing the housing market.

What do these Changes Mean on a Practical Level?

  • If you have deals in the pipeline, get them to apply for a mortgage NOW. Clients will need to be approved by the lender and insurer (CMHC) prior to July 1st in order to qualify under old rules. After July 2020, there will be more restrictive requirements for credit and debt servicing.
  • For example: For a purchase of a $350,000 house with 5% down the requirement for income is $73,571.13, after the changes the requirement will change to $81,979.26. This will have a significant impact on income requirement.

What can you do to assist your buyers using CMHC?

  • Any clients with lower credit scores, unsure of their direction should firm up purchasing now.
  • Any clients with a little extra debt with the requirement of more flexible guidelines should firm up agreements now.
  • Try to secure new home upgrades as soon as possible to avoid big material changes that require re-approval closer to possession as it may cause an issue.

It is important to note that this is not a directive from the Ministry of Finance, so Canada’s private mortgage insurers such as Genworth and Canada Guaranty are not adopting the new mortgage rules.

Ownest is Here to Help

Ownest’s team of in-house mortgage experts are second-to-none and work with a large network of preferred lenders.

  • We will put in the extra hours necessary to ensure your clients’ needs are met.
  • Any offers submitted where approvals from lenders are obtained, we will ensure CMHC or other insurer approval is obtained;
  • Wherever possible, we will work with lenders that don’t require CMHC or other insurer approval after financing had already been approved, to help ensure your client has approval upon possession (some banks require resubmission closer to possession).

If you need advice or would like us to help you navigate the changing landscape of mortgages, we invite you to contact us and we’ll be happy to help.

Contact Ownest for Mortgage Advice

 

 

 

 

 

 

 

A New Way to Shop For Mortgages

OWNEST FINANCIAL – A NEW WAY TO SHOP FOR A MORTGAGE

Have you been in the market for a home recently and have considered getting a mortgage? Perhaps you’ve thought to contact your bank, or a friend of a friend’s mortgage broker. Both are good options, but what if we told you that there’s a better and easier way to obtain a mortgage? One that puts YOU in the driver’s seat and allows you to pick which mortgage product is best for you; so that you know you’re getting the best deal? Because let’s face it, a home is likely one of the biggest purchases you’ll make in your life. Why not ensure you’re not overpaying? See how we’re different below:

  1. We shop over 120 banks and lenders and have access to over 22,000 mortgage products

What does this mean for you? The banks can only give you their best rate. Mortgage brokers usually only work with select lenders. Both options mean that you’re limiting your mortgage choices. With Ownest, you have access over 120 different lenders, including major banks, with over 22,000 mortgage products. The best part is, YOU get to choose which product is right for you, eliminating someone else making that decision for you. It even shows you how much of a savings you’ll get over the term. Think of us like an Expedia for mortgages. Shop for a mortgage like you would a flight or hotel.

*images above only to be used as examples.

  1. We continually shop for a better rate for you

When is the last time your bank called you to tell you that you are paying too much on your loan? Or your cell provider telling you that there is a way better plan that will save you hundreds of dollars? We’re going to go with never.

That is how Ownest is different. We monitor your mortgage monthly (without any sort of hit on your credit) to check if there is a better deal out there that can save you money. Thanks to our mortgage monitoring, we have saved our clients thousands of dollars. Best part is, only our proprietary software does this for you automatically! No one else in the game can say the same.

  1. We don’t turn you away if you don’t qualify right away

If our software doesn’t approve you right away, our team of mortgage experts reviews your application and will evaluate your unique situation against our mortgage product options. Many times, Ownest Financial has creatively gotten clients approved for mortgages as we truly want to help you in your path to homeownership. If you still do not qualify for a mortgage, our software will continue to run your application monthly against mortgage offerings in our system and will notify you when your mortgage qualification changes.

Your mortgage qualification can change if mortgage rates go down or if lenders change qualifying criteria for their mortgage product. This is all done virtually so there is no credit hit associated with this process!

To learn more about how Ownest saves you time and money, contact us. In the meantime, why not apply for a mortgage today to see how much you pre-qualify for!

No Down Payment? No Problem!

No Down Payment? No Problem!

Have you been wanting to own your own home for a while now, but are struggling to save up a down payment because of increased cost of living, or other financial burdens? We understand that sometimes it’s hard to save up thousands of dollars for a down payment when you already have to pay rent, groceries, child care, etc.  That is why Ownest wants to help! Introducing:

Flex-Down Mortgage!
a borrowed down payment option

Learn more about the program with a brief Q&A (question and answer) below.

Q: How can I purchase a home without a down payment?
A: With the Flex-Down Mortgage, you may be eligible to borrow your down payment. This non-traditional source of down payment may include borrowed sources to the sale such as:

Personal loan
Unsecured/Secured line of credit
Credit card
Gift from a non-immediate family member.

Q: How much can I borrow?
A: You can borrow between 5% – 9.99% of the purchase price of the home. Please note that if you’d like to use the Flex-Down Mortgage Program offered by Ownest, the purchase price of the home must be less than $1,000,000.00.

Q: Do I have to borrow the entire down payment?
A: No. If you already have money saved up on your own, you can combine the two to make up your down payment.

Q: Does a borrowed down payment save me money?
A: It could – and we hope it does! Say you are currently renting a 3-bedroom home for $2,400/month. A mortgage could cost you less!

On a $400,000, you would need to borrow around $22,000 to cover your down payment and possible closing costs. This means that your mortgage payments could be around $2000/month* including your loan payments. This means that YOU could own your own home for less than you’re currently paying in rent.
*Please note this would not including property taxes, insurance, utilities, etc.

Q: Is this option available for a vacation or secondary home?
A: Absolutely! Should you be able to borrow your down payment from one of the sources above, you can absolutely use the borrowed down payment towards a second home.

Q: Am I able to use this program to purchase a home and rent it out?
A: Unfortunately, no. The home must be owner-occupied.

Q: Is there a catch?
A: There is absolutely no catch, however you must be able to qualify for a mortgage as you would with any other home purchase, and you would have to qualify for the borrowed source as well.

Q: I’m interested! How can I find out if I’m eligible?
A: We’d love to discuss your options and see if you’re eligible. Simply apply today, or contact us! It’s that simple!

We like to be transparent, so we listed the pros and cons to this program below:

Pros

  • Achieve home ownership sooner than without the borrowed down payment
  • Take advantage of today’s low housing prices
  • Great rates available currently
  • If you wait and save, rates and house prices could be higher
  • Line of credit allows for a low interest only payment

Cons

  • Additional debt payment
  • Higher Mortgage Default costs
  • Less lender availability banks don’t participate
  • Tougher qualifying guidelines – good credit is required
  • Adding additional debt, may lower the amount you qualify for

4 Easy Tips To Pay Off Your Mortgage Faster

4 EASY TIPS TO PAY OFF YOUR MORTGAGE FASTER

Congratulations! You are officially a homeowner and made a huge investment in your future. Instead of paying your landlord’s mortgage every month, you are now spending your hard-earned money on YOUR mortgage payments while building equity. One way to get the best possible outcome of your investment is to pay off your mortgage as early as you possibly can. If you follow these four simple tips, the interest on the loan may decrease, and your amortization term will also decrease. This means more money in your pocket. Yay!

Below are 4 easy tips to help pay off your mortgage sooner.

  1. Make Bi-Weekly Payments

Do you currently pay your mortgage payments monthly? Consider making them bi-weekly instead! Bi-weekly payments mean payments every two weeks, instead of once a month. Because a normal calendar year is 52 weeks, making payments every 2 weeks will mean that you’d make 26 payments every year, therefore paying more of your principal than if you only made 12 larger payments in a year.

This is because there would be two months that you’d make three mortgage payments in the month, allowing two extra bi-weekly payments to be made in the year.

For example, say you have a $300,000 mortgage with a 3% interest rate. On an accelerated bi-weekly payment schedule, you could save around $16,000 in interest and could cut your amortization schedule down by almost 3 years!

  1. Round Up Your Payments

Did you know that rounding up your mortgage payments could shave years off your amortization schedule? For example, if your bi-weekly mortgage payments are $480, consider rounding up your payments to $500 which is a difference of only $20. If you’re able to do this, your bank account will hardly notice the small additional amount, while shaving years off your amortization schedule.

Just make sure this additional amount is going towards your principal and not your next mortgage payment.

  1. Make Lump-Sum Payments

Do you have some padding in your savings that could be put towards your mortgage? Did you recently get a bonus a work? Or perhaps you just got your tax refund back? Depending on the terms you agreed with your lender, it is common to have a mortgage that allows you to pay one lump-sum payment every year towards the principal of your mortgage. This yearly lump-sum payment is normally allowed based on a fixed percentage of your mortgage. For example, some lenders allow as much as a 20% lump-sum payment towards the principal of your mortgage once a year (normally on the anniversary of your mortgage). This payment would go directly to the principal amount of your mortgage, which could in turn lower your payments and/or amortization schedule, therefore saving you money on interest.

Before doing this though, be aware that mortgage terms vary depending on the lender. If your lender does not allow lump-sum payments, you may end up paying a penalty if you wish to put make one.

  1. Never stop shopping!

When was the last time your bank called you to tell you that you were paying too much on your loan? Or your cell phone and internet provider calling to tell you that there was a better rate available that included everything you currently have? The answer is probably never.

We understand that a home is a huge purchase, and we want to be in your corner. That is why Ownest monitors your mortgage monthly. If a better mortgage product becomes available that will save you money, you will instantly get notified. That means that we are shopping around for better rates and products for you constantly, because we see our relationship as long lasting and will continue to be in your corner after you purchase your home.

To learn more about how Ownest saves you time and money, contact us. In the meantime, why not apply for a mortgage today to see how much you pre-qualify for!

First Time Home Buyers Incentive Program

First Time Home Buyers Incentive Program

The federal government has recently introduced an incentive program for first time home buyers (FTHB) in Canada. This new program is designed to help first time home buyers reduce their monthly mortgage carrying costs without adding to their financial burdens.

What does this mean for you? If you’re a first time home buyer, up to 10% of the purchase price of your home may be paid for by the government. This means that your monthly mortgage payments will decrease, leaving more money in your pocket.

Below is a chart to explain how the savings that that you will have should you purchase a pre-existing home through the program, assuming a purchase price of $400,000:

Below is a chart to explain how the savings that that you will have should you purchase a pre-new build home through the program, assuming a purchase price of $400,000:

Total savings were calculated by using the difference between insurance premium + Payment difference over 60 month term + Interest over the term. If you’d like to check how much you qualify for, click here.

Below are common FAQs associated with the program:

Interested in knowing more?

Contact Us