Ranked #1 Mortgage Broker in Winnipeg, MB
The mortgage company you select for your Winnipeg home loan can have a significant impact on your financial future for years to come. Your home is likely the largest purchase you’ll make in your lifetime, making it essential to choose the right mortgage loan that aligns with your needs. Selecting the right mortgage is the first crucial step toward achieving your homeownership goals.
Choosing the Right Mortgage Mortgage for You
Choosing the right mortgage loan is the first essential step toward achieving your homeownership goals.
Down Payment Assistance
Access grants or mortgages through provincial and municipal programs to make homeownership more accessible.
Home Equity Line of Credit (HELOC)
Enjoy a flexible credit line secured by your home equity for various financial goals.
Non-Traditional Mortgages
Find options for self-employed individuals, borrowers with less-than-perfect credit, or those needing creative financing.
Investor Mortgage Programs
Secure financing for rental properties or commercial ventures with customized solutions.
Home Purchase Mortgages
Explore options tailored to your needs, including conventional mortgages, high-ratio mortgages, and flexible fixed or variable-rate terms.
Refinancing Solutions
Unlock opportunities to save with rate and term refinancing or access your home equity for renovations or other needs.
First-Time Homebuyer Programs
Benefit from government initiatives like the Home Buyers’ Plan (HBP) and the First-Time Home Buyer Incentive.
First Time Home Buyers
To qualify for a mortgage in Canada, first-time home buyers generally need:
- A credit score of at least 600 (higher for better rates).
- A steady income and employment history.
- A down payment of at least 5% for homes priced below $500,000, and 10% for the portion above $500,000 up to $1,000,000.
- A Total Debt Service (TDS) ratio below 44%.
- First-Time Home Buyer Incentive (FTHBI): A shared equity program that helps reduce monthly mortgage payments.
- Home Buyers’ Plan (HBP): Allows withdrawal of up to $35,000 from your RRSP to buy or build a qualifying home.
The minimum down payment depends on the home’s price:
- 5% for homes under $500,000.
- 10% for the portion above $500,000 up to $1,000,000.
- 20% is required for homes priced at $1,000,000 or more.
- Access to government incentives like FTHBI and HBP.
- Possible savings on land transfer taxes.
- Building equity instead of paying rent.
- Stable monthly payments with fixed-rate mortgages.
- Pre-approval: Start by getting pre-approved to understand your budget.
- Choosing a Realtor: Work with a licensed real estate agent familiar with your area.
- Closing Costs: Budget for legal fees, home inspection, appraisal, and land transfer taxes.
- Mortgage Insurance: If your down payment is less than 20%, you’ll need CMHC insurance.
Mortgage Types and Options
- Fixed-Rate: Interest rate remains constant throughout the term. Offers stability but typically higher rates.
- Variable-Rate: Interest rate fluctuates with the prime rate, offering potential savings but with more risk.
- Benefits: Lower down payment requirements (as low as 5%) and access to competitive interest rates.
- Drawbacks: Additional cost of mortgage insurance premiums, which are added to your loan balance.
A CMHC-insured mortgage protects lenders if you default and allows borrowers with less than a 20% down payment to qualify. To be eligible, the home’s purchase price must be below $1,000,000, and borrowers must meet income and debt ratio limits.
- Conventional Mortgage: Requires a down payment of at least 20%, avoiding CMHC insurance.
- Insured Mortgage: For down payments less than 20%, requiring insurance premiums.
Consider your:
- Financial stability and risk tolerance (fixed vs. variable rate).
- Down payment amount (conventional vs. insured).
- Long-term goals, like the time you plan to stay in the home.
Mortgage Glossary
Annual Percentage Rate (APR) represents the total cost of borrowing, including the interest rate and fees. A lower APR means lower overall costs.
Refinancing replaces your current mortgage with a new one, often with better terms. It’s beneficial when interest rates drop or if you want to consolidate debt.
LTV is the ratio of your mortgage loan to the home’s appraised value, expressed as a percentage. A lower LTV indicates less risk for the lender.
- Pre-qualification: An estimate of how much you can borrow based on informal data.
- Pre-approval: A formal process involving credit checks and verification of financial documents to confirm the loan amount you’re eligible for.
In Canada, PMI is referred to as CMHC insurance and is required when the down payment is less than 20%.