Welcome to Kanetix®'s online mortgage rate comparison service for first-time homebuyers. Comparing mortgage rates for your first mortgage only takes a minute and best of all it's free with absolutely no cost or obligation. Simply select your province of residence and click "GO".
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Comparing first mortgage rates is easy. Don't know your credit score? Not sure about all of the details? No problem. Through Kanetix.ca, you don't need to know every detail in order to get your 1st mortgage loan quote. All you need is just some basics like: your employment status, your approximate credit score (excellent, good, fair, or poor), when you need your mortgage by, and the amount of mortgage loan you are seeking. It's that easy.
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If you're buying your first home you're likely eligible to take advantage of the Home Buyers' Plan. This home buyers program is specifically designed for first-time home buyers. The HBP allows you to withdraw up to $25,000 from your Registered Retirement Savings Plan (RRSP), tax-free, to be used for the purchase of your home. The key conditions of the program that first-time home buyers should be aware of are listed below:
The First-Time Home Buyers' Tax Credit is a tax credit of $750 for first-time homeowners. It is meant to refund home buyers a portion of the money associated with the purchase of their home.
In order to receive this tax credit, the following conditions must be met:
For more information, please see our First Time Home Buyers' Guide.
There's more to getting a 1st mortgage than finding the lowest mortgage rate. In fact, the best mortgage is the mortgage that offers you the options, flexibility and mortgage interest rate that you can live with and this is precisely where Kanetix.ca can help you. Through Kanetix you can compare the mortgage rates for a variety of mortgage products and terms. Rates are updated as they change and are displayed in an easy-to-compare format to help you in your search for the best available mortgage rate.
There are two types of mortgage interest rates and for your first mortgage you may be asking yourself: Should I select a fixed mortgage rate or an adjustable mortgage rate? Both options have their pros and cons:
Fixed rate mortgages have interest rates that are set and will remain the same for the entire term of the mortgage. With a fixed rate mortgage, your mortgage payments remain constant so you know exactly how much you will pay every month.
With a fixed rate mortgage, you are protected from interest rate increases and can better control your budget. You will know exactly how much of your income will go towards your mortgage.
Your mortgage payments are broken down into "Principal" (amount of the loan owed at any specified time, not including interest) and "Interest" (the fee you pay for having borrowed money from a lender).
Since your monthly mortgage payments do not change with a fixed rate mortgage, more of your mortgage payment will go towards the principal with each payment that you make. This is because as your principal gets reduced with each payment, the total interest charged on the principal shrinks as well. This trend continues regardless of whether interest rates in the economy start increasing.
Variable rates could change many times over the course of the term of your mortgage. The effect of changing rates will depend on the lender or the mortgage you obtained.
For example, if your lender's interest rates change (let's say they increase), then the amount of your mortgage payment that goes against your principal will decrease. If rates decrease then more will be applied to your principal because you will be paying less in interest. If your payments are not fixed, as rates rise and fall so too will your payments.
As a first time home buyer in search of your first mortgage, you will also need to decide if the mortgage you choose will be an:
With an open mortgage you can pay off the balance at any time, or apply extra cash to the outstanding loan, without incurring any penalties or extra charges. A fully open mortgage loan typically has a higher interest rate than a closed mortgage home loan, because you can pay it off or reduce the balance by any amount at any time.
A closed mortgage loan typically has a lower interest rate than an open mortgage although it too may allow the occasional additional payment, as per your lender's discretion. Basically a closed mortgage cannot be renegotiated, or refinanced before the mortgage term reaches full maturity without some sort of additional charge.
The following are great resources for first time home buyers looking to get their first mortgage:
Kanetix Mortgage App
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