Here are some important considerations in financing your new Samcon condo.
Financing up to 95% of the condo’s value
Mortgage loan insurance from CMHC (Canada Mortgage and Housing Corporation) makes it possible to finance up to 95% of the purchase price of your new condo (depending on certain conditions). Thus it is possible to finance your condo with a down payment of as little as only 5% of the purchase price. For more information, visit the internet site of CMHC by clicking here.
Grant from the city of Montreal
The city of Montreal has established a home ownership programme that provides a grant (lump-sum payment) to first-time buyers of new condos. Here are the main elements of this programme:
- Single people can obtain a grant of $2,250 on the purchase of a new condo of $200,000 or less (tax included).
- Households of two people without children, who buy jointly, can get a grant of $2,250 on the purchase of a new condo of $250,000 or less (tax included).
- People with children can obtain a grant of $5,000 + 100% refund of the transfer tax on the purchase of a new condo of $280,000 or less (tax included).
- A financial aid of $6,250. (plus reimbursement of land transfer tax) for household with at least one child under 18 years of age, acquiring ‘a family housing’ $360,000 (new unit with minimum 5 rooms comprising 3 bedrooms) having a living space as measured on the localization certificate less than 96m2 (1033 pi2)
To learn more, visit the internet site of the city of Montreal by clicking here.
Amortization for up to 25 years
Financial institutions agree to amortize mortgage loans over a period that can go up to 25 years, which allows greater flexibility for buyers to plan a budget that fits their revenue. This flexibility allows buyers to acquire a property with payments that are often comparable to the monthly payments on a rental property.
Reduced interest rate and favourable financing conditions
Samcon negotiates favourable financial conditions for its buyers for each of its projects. Thus, the financial institutions retained by Samcon can give interest rate reductions of as much as 1% in comparison to the normal market rates. Moreover, you can get protection for your interest rate until the date that your condo is delivered (up to 12 months or more). You will be protected in this way against possible increases in rate but if the rates drop during the same period, you would be able to benefit from that reduction.
The Home Buyers' Plan (HBP) can help you acquire a new condo
The Home Buyers' Plan (HBP) allows you to use part of your RRSP to finance the acquisition of your new condo. Thus, you can withdraw up to $25,000 from your registered retirement savings plan (RRSPs) to buy your new condo. For more details, visit the internet site of the Canada Revenue Agency by clicking here.