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Monday, September 21, 2020

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creative artist

creative artist

creative artist

creative artist

creative artist

creative artist


We understand the entertainment industry, and the people in it.

Your first home

Buying your first home is an exciting step. As a first-time buyer you'll have many important decisions to make along the way. Explore some of the issues, and decide if home ownership is right for you.

What government help is available to first-time homebuyers?
How do I choose the right mortgage?
Building your homebuying team
Anticipating your closing costs

How much can I afford to spend?

Your Downpayment

If you make a downpayment of 20% of the mortgage amount or more, you will get a conventional mortgage, which eliminates the need for mortgage default insurance through Canada Mortgage and Housing Corporation (CMHC).

But you can also purchase a home with as little as 5% down of the purchase price. This is called a  high ratio mortgage. This kind of mortgage must be insured by CMHC or other mortgage insurance provider. Depending on the size of the downpayment, you'll be charged an insurance premium, which is a percentage of the mortgage amount. For your convenience, you can add this premium to your mortgage and pay for it as part of your regular mortgage payments.

Your Monthly Payments

For your financial protection, you should spend no more than 35% of your gross annual income on housing. This means that if your family's gross annual income is $40,000, you should pay approximately $14,000 a year or $1,166 a month for:

  • principal, interest and taxes
  • heating costs
  • half of any condominium fees that apply

You should also consider other financial liabilities you may have, such as payments on personal loans and credit cards, plus child care expenses or support payments. You'll be much more secure if these payments, along with your housing expenses, add up to less than 42% of your gross annual income.

Pre-approval takes the guesswork out of house hunting

The knowledgeable staff at Creative Arts can tell you exactly how much you can borrow, before you start looking at homes. We will look at your downpayment and the monthly payments you can afford, in order to provide you with this important number. Then you will be ready to house hunt with confidence and make an offer quickly if the perfect property comes along.


What government help is available for first-time homebuyers?

Saving for a downpayment can be made easier through the federal Home Buyers' Plan. The government lets you withdraw, without immediate penalty, up to $25,000 of your RRSP savings for use as part of the downpayment on a qualifying residence. Then you pay back into your RRSPs over a 15 year period. To qualify, neither you nor your spouse can have owned a home in the last four years.

How do I choose the right mortgage?

You can choose from a number of mortgage options, fixed or variable, open or closed, to meet your needs and lifestyle. We can assist you along the way.


Building your homebuying team

Once you are ready to look, it's time to assemble a team of professionals who will work with you. Start by calling us. We can help you choose the right mortgage and calculate your pre-approval.

Realtor: Although you can purchase without a realtor, it is a good idea to enlist the services of an agent who will provide objective advice. With a good understanding of your needs, an agent can help you compare a number of properties. As a buyer, you pay no realtor’s fees.

Home inspector: A clean bill of health from a qualified home inspector can provide a great deal of comfort when buying a home. Be sure to use a reputable inspector and ask for references.

Lawyer: When you make an offer on a home, you'll want a lawyer to review it in detail and ensure it contains all the necessary information. Your lawyer will also protect your interests in managing the closing of the transaction.


Anticipating your closing costs

Know what to expect well in advance of the day of closing. You'll need to budget for:

CMHC insurance premiums: These will apply if you take a high ratio mortgage.

Land transfer taxes: The provincial government levies this one-time tax when you buy a home (ask your lawyer for details). If you are a first-time homebuyer of a newly constructed home you are entitled to a rebate.

Legal fees: You are responsible for paying the lawyer's fees and disbursements.

Fire insurance: You are required to take fire insurance effective the time you legally take possession of your new home. Other insurance requirements may also apply.


To help limit the spread of COVID-19 virus the office is closed until further notice in accordance with the recommendations of the City of Toronto  Read more...

Look Who's Talking

Shelley Cook recalls a time when she approached one of the big banks for a loan. “I told them I was a stunt girl and they said ‘Do you have a real job?’ “ Read more...

Deposit Insurance Reserve Fund

Did you know that deposits are insured by the Deposit Insurance Reserve Fund (DIRF)? So you can rest comfortably knowing your deposits are safe.   Learn more... 


416.642.6749  |  877.643.3660  |  info@creativeartscu.com








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