First-Time Home Buyer Mortgage Lethbridge ,Alberta

Navigating Your First Purchase Buying your first home is one of the most exciting and significant milestones in your life. However, the process of securing a first-time home buyer mortgage can feel overwhelming without the right advocate. As your local Lethbridge mortgage broker, I specialize in helping new buyers understand the fundamentals from how amortization works to the difference between conventional and high-ratio mortgages.

Maximizing Your Benefits There are several incentives designed specifically to help you enter the Alberta real estate market. Whether it’s utilizing the Home Buyer’s Plan to withdraw up to $35,000 from your RRSPs tax-free or exploring low down payment options (starting at just 5%), I am here to ensure you take full advantage of every program available to you. My goal is to simplify the complex financial landscape so you can focus on finding the perfect first home for your future.

Conventional vs high-ratio mortgages

When your down payment is 20% or more of the purchase price, you have a conventional mortgage, and you don’t need to pay for mortgage default insurance. Any down payment less than 20% of the purchase results in a high-ratio-mortgage and mortgage default insurance is required.

Mortgage default insurance

This protects the lender if you can’t make your mortgage payments. Sometimes known as “CMHC Insurance”, it’s actually available from 3 insurers: Canada Guaranty, Genworth Canada, and Canada and Mortgage House Corporation (CMHC). The premium is added to the total mortgage amount and is determined by how much down payment you have to put towards the purchase.