We feel that affordability depends most importantly on your gross household income, your down payment and the mortgage interest rate. Lenders will also consider your assets and liabilities. Your own lifestyle and debt comfort zone also come into play.
The “Welcome to Canada” program for permanent residents and newcomers allows you to purchase a home with 35% down payment. The down payment requirement may be reduced to a slow as 5%, if you find permanent employment in Canada.
There are several incentives and schemes for first time buyers in Ontario. Below are some first time home buyer incentives/ rebates: RRSP Home buyers plan, Ontario land transfer tax rebate of up to $4,000, HST rebate for new home buyers, First time buyer tax credit and Our Special Home Ownership Incentive.
Resale homes are exempted from HST in Ontario. HST is payable on builder new homes and condos.
Some other considerations for First Time Buyers, Newcomers & People on a Work Permit
Can People on Work Permit Buy Property in Mississauga (Canada)?
If you buy immediately upon arriving in Canada, you will be hit by 15% Foreign Buyer Tax. However, this amount is reimbursed to you when you get your Permanent Residence (PR).
What is Better – to Rent or Buy a Property after becoming a Permanent Resident?
We highly recommend buying vs. renting, as renting is simply throwing away money (or paying off someone else’s mortgage), which you will agree, mostly does not make prudent sense. We conduct First Time Buyer sessions for Permanent Residents of Canada looking to buy in 1-2 years of landing. This informative session will clear any questions or concerns that you may have about buying a home or a condo in Mississauga & area as a First Time Buyer. By far the most important factor is building your own real estate wealth as soon as possible.
Remember – the amount that you pay as rent on a monthly basis can cover the cost of your own mortgage on your own home or condo, depending on the down payment that you are able to put in at the time of buying.
Second important consideration is that Real estate market is doing very well in Canada & some property types are still affordable.
However, we do understand that circumstances might compel you to rent initially, before you can buy. This is fine and we can help even in this scenario.
What is the Rent Now – Buy Later Program
As part of this program we can assist you with finding a suitable property to rent for 1-2 years (max). Closer to the end of your lease term (or earlier depending on your readiness to purchase), we will start sending you for sale listings that closely match your needs. We will arrange for showings so that you can cherry pick the home or condo you would like to buy.
As a Buyer, when you Buy your home or condo with Team Kalia, you DO NOT pay us any fee or commission, as the Buyer Broker fee or commission is typically covered by the Seller in Canada.
What are the Rent Now-Buy Later Program Benefits
- Ideal for Newcomers, People on Work Permit, Millennial Home Buyers, First Time Home Buyers in Mississauga
- Gives you peace of mind – helps you secure a unit for rent in a typically tight rental market
- Gives you confidence – knowing that you will soon become a homeowner & contribute towards your own mortgage payment
- Allows you time to save for a down payment towards your home purchase
- Gives you time to figure out the best neighbourhood to buy in, based on your work, school & other criteria
- Makes you an informed buyer as we will educate you about mortgage, resale vs. builder new options, first time buyer incentives & much more