A big part of your decision-making process as a first time home buyer in Prince George will greatly depend on your financial capabilities. You have to first look into how much money you can come up with for the down payment of your first home and also arrive to a conclusion as to how much monthly mortgage you can afford. You don’t want to be saddled with a monthly mortgage that takes up a huge part of your monthly earnings, leaving no room for anything else.
As a first time home buyer in Prince George, not everyone can get their down payment from their savings. If you are wondering where else to get your funds, here are some sources you can tap into:
1. Your RRSP or Registered Retirement Savings Plan
In Canada, you can get up to $25,000 from your RRSP or Registered Retirement Savings Plan. If you are married, your spouse can also get the same amount of money, giving you a combined maximum down payment potential of $50,000. You can use this money as a down payment for your principal residence. You will be given 15 years to pay the loan off. This plan also benefits people with disabilities or people with disabled family members.
2. Government-given lending programs
The government offers financial assistance for people with a low income. Even with no down payment and being a high-risk, the government approves those who have no down payment to give.
3. Special lending institutions
Some lending institutions offers affordable programs for those who want to purchase a house. There are also those who offer no down payment or low down payment and cheaper financing options for condominiums. These lending institutions can offer up to 90% of the price of the house you want to purchase. The remaining 10% is backed by the second mortgage provided by the developer. These lending institutions do not add interest, which is great for first time home buyers.
Aside from these, the most popular choice to get your funds is still from mortgage lenders. But if you want to explore all your financing options, make sure you check out the above-mentioned sources of funds. However, be careful when transacting with lenders, especially the independent or individual lenders. You wouldn’t want to become a victim of fraudulence or sign documents with hidden charges. It’s always best to consult with an experienced Real Estate agent or even a lawyer.
First time home buyers in Prince George should also seek the help of real estate agents. Many real estate companies can help you find mortgage lenders and arrange for your RRSP to be used as funds in buying your house. First time home buyers in Prince George should look for real estate agents such as Billy O with a lot of experience in helping buyers with no down payment or very little down payment funds.