Buy, Renew, Refinance Your Mortgage

The greater the down payment, the more you will save in interest and insurance fees. The smaller the down payment, the longer it will take for you to become mortgage-free.

The source of your down payment may come from the sale of an existing home, your personal savings, or other sources, such as family members, or a combination of these.

Your first mortgage decision involves determining what percentage of the purchase price of your home will go toward your down payment. This decision, in turn, determines which type of mortgage you can apply for.

• With as little as 5% down payment, you can own your own home.
• Compare mortgages to find the one that's right for you.

RRSP Home Buyer's Plan

If you are a first-time home buyer, you can take advantage of the RRSP Home Buyer’s Plan to withdraw up to $25,000 from your Registered Retirement Savings Plan to use as a down payment.

• For more information, go to the Canada Customs and Revenue Agency.
• Try our online mortgage calculator to find out how different down payment amounts affect how much you could borrow and what your mortgage payments would be.

Default insurance

Subject to the rules and regulations of the National Housing Act, if the amount of your down payment is less than 20% of the value or purchase price of your property, you are required to have default insurance in order to protect against a loss in the event of default.

The Canada Mortgage and Housing Corporation is a Federal Government Agency that provides default insurance.

The insurance premium will often be added to the amount of your new mortgage loan. If you sell your home and purchase another, your mortgage may be ported to the new property along with the insurance premium you have already paid (subject to standard credit approval).

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Searching for your home

When you begin your search for the ideal home, you face many choices. Consider every option and weigh them against your needs.

Choose the features of your home
House or apartment; number of bedrooms; gas fireplace; patio; extra parking; etc. List the features that you would like, and then prioritize them to help you choose among properties from your short-list.

Choose your neighbourhood
As soon as you have a good idea of where you want to live, get to know the area as well as you can. You want to be happy where you make your home.

Choose your real estate agent
When you know where you want to live and have decided the type of property you want, it’s time to choose a real estate agent. Your agent will provide you with a list of properties within your price range that meet your requirements.

Find out more in Searching for Your Home.

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Getting a pre-approved mortgage

Before you start house hunting, consider applying for a pre-approved mortgage. With a pre-approved mortgage, you have some advantages:

• You know your price range, so you can narrow your search.
• The seller will find your offer more attractive when they know that you already have financing.
• Your mortgage rate is guaranteed for 60 days. Applying is free, and you are under no obligation to accept our offer.

Choosing the right mortgage

HSBC offers many types of mortgages, and within each mortgage option are features that can be tailored to fit your needs and your financial situation.

HSBC Mortgages
Our mortgages are designed to meet your individual needs as a new home-buyer:

• HSBC Smart Savers Mortgage^TM.
• Traditional Mortgage.
• Equity Power Mortgage.

Compare mortgages to find the one that’s right for you.

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Budgeting for other costs of homebuying

Besides your mortgage and your down payment, there are other costs involved in purchasing a home. Plan to budget from 1.5 - 4.0% of the purchase price for the:

• Appraisal Fee.
• Building Inspection Fee.
• Land Survey Fee.
• Land Transfer Tax.
• Registration Fees.
• Legal Fees.
• GST.
• Moving Expenses.
• Connection Fees (e.g., cable, telephone).
• New Furnishings & Fittings.
• Immediate Renovations & Repairs.

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Incentives for new home buyers

The 2009 Federal Budget included some incentives for new home buyers that you may be interested in:

• 15% Home Renovation Tax Credit (HRTC).
• Home Buyers’ Plan RRSP maximum withdrawal increased from $20,000 to $25,000.
• ecoENERGY Retrofit Grant – Grants up to $5,000 to offset the cost of making home improvements to reduce energy consumption.
• First-Time Home Buyers’ Tax Credit (HBTC).

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