Five year locked mortgage or a prime Mortgage?

by Norm Rousseau 19. October 2009 15:47
Should we lock in for a five year trem or go with the prime rate. If you like the comfort of the regular monthly payment or have it floating, attached is a chart that may help make that decision.

5 Closed Mortgage & Prime Rate.pdf (2.12 mb)

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Buyers | Home Owner Resources | Mortgage Rates & Information

Current Mortgage Rates

by Norm Rousseau 30. June 2009 14:19

Although the mortgage rates have moved up slightly, they are still very attractive and with the adjustment down in home prices it's an excellent time to buy realestate. 

RATE BULLETIN AS OF JUNE 30.pdf (35.61 kb)

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Mortgage Rates & Information

RRSP's as down payments

by Norm Rousseau 4. March 2009 08:46

The Federal Government’s First-Time Home Buyers’ Plan (HBP) Revenue Canada will permit the use of RRSP funds for the purchase of a home by a first-time homebuyer (refer to Revenue Canada document P150 (E) for further details concerning the program). 

Withdrawal of RRSP Funds for Down Payment:

  • The current HBP permits the first-time homebuyer to withdraw up to $25,000 tax-free from their RRSP to buy or build a home. The amount ithdrawn is treated as a loan and must be repaid within a 15-year period, commencing in the third year after the withdrawal. If the annual payment is not made it is treated as taxable income for that year.
  • This Program may be used with the CMHC’s First-Home Buyer’s Program (5% down payment program).
  • You should plan to pay back 1/15th of the funds drawn per year. If you repay less than 1/15th in one year, the difference from the amount paid and 1/15th of the amount will be calculated as income and taxed at your marginal tax rate.

The following is a sample repayment schedule of a mortgage with an RRSP down payment:

Mortgage Amount:

  1. Take the Purchase Price: $175,000.00 
  2. Less: 5% RRSP Down Payment   $8,750.00
  3. That gives you the Mortgage Amount   $166,250.00
  4. Add: Canada Mortgage and Housing Corporation (CMHC) 2.5% premium  which is $4,156.25
  5. Total Mortgage  $170,406.25  

Calculate Payments :

  1. Monthly Mortgage Payment (at 5% fixed, 5 year term, 25 year amortization) $995
  2. Add: Monthly RRSP Repayment OR (1/15th of Annual RRSP Repayment of $583.33) $48.61

Total Payments are 1,043.61

Thanks to :
Mark Herman; AMP, B. Comm., CAM, MBA  - Accredited Mortgage Professional
Mortgage Alliance - Mobile: 403-681-4376 - 1-866-823-1279
7142- 36 Avenue N.W. Calgary, Alberta, T3B 1T8

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