First, it is important to know if you legally qualify as a first-time homebuyer (FTHB), as this status unlocks specific perks. You are considered an FTHB if you meet one of the following criteria:

• You have never purchased a home before.

• In the past 4 years, you have not occupied a home as your principal residence that you or your current spouse/common-law partner owned.

• You have recently experienced the breakdown of a marriage or common-law partnership and have been living separately for at least 90 days.

Savings Programs Designed for You To help you accumulate your down payment, the government offers specialized tax-advantaged accounts:

• First Home Savings Account (FHSA): This is a registered plan that allows eligible first-time homebuyers to save up to $40,000 tax-free for their down payment. As long as conditions are met, the withdrawal is tax-free.

• Home Buyers’ Plan (HBP): This program allows you to withdraw up to $60,000 from your individual Registered Retirement Savings Plan (RRSP) tax-free to buy or build a qualifying home.

• (Note: You may hear about the government's First-Time Home Buyer Incentive (FTHBI) shared equity program, but be aware that this program was officially discontinued in March 2024).

Down Payment Rules and Gifts You do not necessarily need a 20% down payment. For an insured mortgage, the minimum down payment requirements from your own resources or a gifted source are:

• 5% on the first $500,000 of the purchase price.

• 10% on the portion of the purchase price between $500,000 and $1,000,000.

• Properties priced at $1 million or more require a minimum 20% down payment.

If you haven't saved the full amount, most lenders allow the remainder of the down payment to be gifted from an immediate family member (such as a parent, grandparent, sibling, or child), provided they sign a gift letter confirming the funds do not need to be repaid.

Extended 30-Year Amortizations Typically, if you have a down payment of less than 20% (an insured mortgage), the maximum time you have to pay off the loan is 25 years. However, a recent rule change specifically benefits first-time homebuyers: You are eligible for a 30-year amortization on an insured mortgage. Stretching the loan over 30 years can significantly lower your required monthly payments and make qualifying easier.

Closing Costs Are Extra In addition to your down payment, you must prove you have funds set aside to cover closing costs, which are expenses like legal fees, home inspections, and land transfer taxes. Lenders generally require you to show you have an additional 1.5% of the purchase price saved for these costs (or 0.5% if you are purchasing in Alberta).

Qualifying for the Mortgage When you apply, lenders will calculate your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to ensure you can afford the home. For insured mortgages, your housing costs should typically not exceed 39% of your gross income (GDS), and your total housing costs plus other debts (like car loans or credit cards) should not exceed 44% of your gross income (TDS). You will also generally need a minimum credit score of 600, though scores of 640 or 680+ are often required for the best programs. These ratios can be extended on exception. Also if your down payment is 20% or greater, these ratios can be vastly increased.

This is usually because tax write-offs have lowered your official net income, or because you haven't been in business long enough—you still have several excellent options

Alternative lenders and specific bank programs offer "Business for Self" (BFS) solutions that focus on the true cash flow and financial strength of your business, rather than just your traditional tax returns.

• Reverse Mortgages: Access your current home's equity without having to make monthly mortgage payments. You can use these tax-free funds to buy a second property or gift a down payment to family.

• Gift a Down Payment: You can give a down payment to a child or grandchild using your savings or equity, as long as you sign a letter confirming the money does not need to be repaid.

• Co-Sign (Family Plans): Mortgage insurers like Sagen and CMHC have specific programs that allow you to co-sign and help an adult child or parent purchase an owner-occupied home.

• Buy a Second Home for Family: You can buy a secondary property with as little as 5% down, provided an immediate family member will live there rent-free.

• Alternative Mortgages for Fixed Incomes: If traditional banks decline you due to a limited retirement pension, alternative lenders offer flexible mortgages specifically designed to help retirees purchase another property.

In fact, many have never had a licensed independent mortgage professional review their mortgage to ensure it still aligns with their current financial goals, family needs, and future plans. Instead, they often rely solely on the advice provided by the lender that holds their mortgage.

While bank mortgage specialists can be a valuable resource, it's important to understand that they are employed by and represent a single financial institution. Their role is to offer and promote the products and services available through that specific lender. TJ and Kevin work differently. As licensed independent mortgage professionals, they have access to multiple banks, credit unions, monoline lenders, and alternative lending solutions. This allows them to compare a wide range of mortgage products, rates, features, and qualification options to help determine what best suits your unique situation

During our complimentary mortgage review, TJ and Kevin take the time to review the features, restrictions, and opportunities within your current mortgage so you can make informed decisions and ensure you're getting the maximum benefit from one of your largest financial commitments.

We'll help answer important questions such as:

• Am I paying a competitive interest rate?

• Does my mortgage still fit my current needs?

• What happens when interest rates change?

• Do I have enough protection if something happens to me?

• Could I save money or pay off my mortgage faster?

• Am I missing opportunities to improve my financial position?

• Is my mortgage structured properly for my future plans?

Our goal is simple: to ensure you fully understand your mortgage and have a strategy in place that supports both your current circumstances and your long-term financial goals.

Here is a brief overview of the main points for purchasing a home as a newcomer to Canada:

• Residency and Employment: You must be a recent Permanent Resident (arrived within the last 5 years) or hold a valid Canadian work permit, and you typically need to demonstrate at least 3 months of full-time employment.

• Alternative Credit Options: You do not need a standard Canadian credit score to qualify. Lenders will accept alternative proof of creditworthiness, such as international credit reports, 12 months of documented rent and utility payments, or a reference letter from your home country's bank.

• Down Payment Sources: You can buy a home with a minimum of 5% to 10% down, which must come from your own savings or be gifted by an immediate family member. If your funds are coming from outside of Canada, you must provide a detailed paper trail verifying the source.

• Flexible Debt Limits: While standard newcomer programs restrict your debt ratios to 39% of your income for housing and 44% for total debt, some alternative lenders will allow you to spend up to 55% of your income on these obligations.