It is RRSP Season!

RRSP season is upon us. We have an opportunity for First Time Homebuyers to obtain a down payment of up to $25,000 to help with a home purchase this Spring.

How does it work?

We can assist clients in setting up a loan for the purchase of an RRSP at the time we begin the pre-approval process. The borrowed funds are placed into an RRSP account and can then be withdrawn after 90 days to be used for a down payment under the Canadian First Time Homebuyer’s Plan. The rate, term, and repayment of the loan are determined by the issuing lender on a case-by-case basis.

This can be a fantastic opportunity for someone to get into the market this spring, even if they don’t have their down payment set up yet.

What is the catch?

Clients MUST have great credit to qualify for this program and they must be able to afford the monthly loan repayment, along with the usual mortgage qualifying criteria.

Bonus:

Many clients who take advantage of this program also end up with a healthy tax rebate when they file their taxes.

The RRSP deadline is February 28^th. Please contact me for more details about this program or with any other questions you might have.

The recent data sure has changed the tone of rates in the coming months.

The prime rate – what variable rates are based on, while a few short weeks ago was expected to rise three times in the next 18 months now with the data on the slowing of the market and uncertainty in projects moving forward as expected, there are signs increases could be delayed until next spring.

The bond market– what fixed rates are based on, has dropped, which means rates (after the banks have hung on as much as possible ) should come down slightly.

What does his mean for borrowers? Let’s break it down per segment:
1. Homebuyers – more affordability due to the recent dip in prices – pending price category anywhere from 10-30%. Remember, working with an unbiased mortgage professional we do a full look back upon closing to ensure the lowest cost of borrowing.
2. Home sellers – price sharp if you want to sell or else no point in being on the market.
3. Renewals – rejoice – payment shock shall be reduced upon renewal.
4. Those carrying debt outside of a mortgage ex: credit cards, car payments, lines of credit – now is your time to see how much money moving that debt into a new restructured mortgage will improve your cash flow. It’s the most effective strategy for protecting your credit.

The market is always changing, yesterday’s news is exactly that. Aligning yourself with frontline experts will help you with clarity in the ever-changing market. While experts can give you the data on the current market – it’s always subject to change, and I will always do my best to keep you informed.

Original article posted by:
ANGELA CALLA
Dominion Lending Centres – Accredited Mortgage Professional
Angela is part of DLC Angela Calla Mortgage Team based in Port Coquitlam, BC.