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The place to learn all about buying or selling a property.


This unique, user-friendly website is specifically designed to answer
all your questions in an interactive way.

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We’re here to answer any questions you may have about buying or selling a property.

Make a
list of
criteria and
preferences


A milestone for what will happen next

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You know what you want

Due to the substantial number of properties available for sale on the market, your research should target those that are within your price range and that also meet all of your requirements, and possibly the little extras you have your heart set on. To help you in this process we recommend that you prepare your own list of criteria and preferences.

Plan
your finances


To determine the amount that a bank can lend you, you must define your monthly borrowing capacity. You can do this by using the following two affordability calculations.

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Calculation of the gross debt service ratio (GDS)

According to this lending principle, the monthly payments of owning a particular house must not exceed 32% of your gross household monthly income.

Calculation of the Total Debt Service Ratio (TDS)

With this lending principle, the monthly payments of owning a particular house and all other liabilities (including car loan, credit card and lease payments) should not exceed 40% of your gross monthly income.

Our mortgage affordability calculator will help you quickly estimate the mortgage payments (principal and interest) you can afford (refer to the "Mortgage affordability calculator" form).

Once you have estimated the maximum monthly mortgage payment you can afford with the help of the mortgage affordability calculator, compare it with monthly payments corresponding to different mortgage amounts. Simply enter the loan amount in the mortgage calculator and the monthly amount of principal and interest will be automatically calculated (refer to "Mortgage Calculator" form).

A mortgage pre-approval

A mortgage pre-approval is very practical to have and is highly recommended by brokers. This tool is valuable for determining the price range of the properties you should visit and protects the mortgage rate you have negotiated with your lender. In addition, it's free and without any obligation on your part.

Mortgage Options


What type of mortgage best suits your needs?

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Mortgages

A fixed rate mortgage

A variable rate mortgage

A regular mortgage

Your interest rate does not change during a given period know as the term of the mortgage. Your payments remain the same for the duration of the term so you don’t have to pay more if interest rates rise over time.

The interest rate can fluctuate based on any changes in market's interest rates.

You are not required to obtain mortgage insurance with a regular mortgage since it requires a down payment of over 20% of the value of the property.

Mortgages

A closed mortgage

An open mortgage

Closed means you are locked into the mortgage for a specific term. This type of mortgage cannot be repaid in full before its term is up, otherwise you pay a penalty for early prepayment.

The mortgage can be repaid at any time before term and without any penalty fees. The interest rate for an open mortgage may be higher than that of a comparable term of a closed mortgage.

Which mortgage options are best for you?

A portable mortgage

You can transfer the terms of your mortgage from one property to another. This feature allows you to carry on with your interest rate so that you don't incur any penalties for breaking your interest rate contract.

Prepayment privileges

For no extra fee, you can make lump sum mortgage payments or increase your monthly payments. This will allow you to pay off your mortgage faster and save on interest fees.

What should the frequency of the instalments be?

By opting for accelerated bi-weekly or weekly payments instead of monthly ones, you can pay off your mortgage much faster. Explore your repayment options with the mortgage calculator to discover how much you can save on interest fees.

How much money to save for a down payment?

The down payment is a portion of the price of the property that is not financed by a mortgage. It must represent at least 5% of the purchase price. For example, when you buy a $200,000 home, you need to have a down payment of at least $10,000. Mortgage insurance is required when the down payment is less than 20%.

CMHC insurance premium on the mortgage loan

Mortgage insurance is mandatory when a borrower makes a down payment of less than 20% of the purchase price of the property.

The insurance premium is typically added to the cost of the mortgage. The amount varies between 0.5% and 3% and is based on the size of your down payment.

Government Programs


The federal government offers financial assistance programs to homebuyers. These programs can vary with time. For up to date information, visit the Service Canada website.

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First-time home buyers tax credit (HBTC)

A $5,000 non-refundable HBTC amount applies to qualifying homes acquired after January 27, 2009, and provides up to $750 in federal tax relief. For more information, visit the Canada Revenue Agency (CRA) website.

Broker's Advice

Ask your Proprio Direct broker how you can benefit from this program.

The Home Buyers' Plan (HBP)

To help you buy or build your first home, the Home Buyers' Plan (HBP) allows you to make a single withdrawal of up to $25,000 from your Registered Retirement Savings Plan (RRSP). The amount can range up to $50,000 if your spouse or partner is also admissible.

Generally, you are given 15 years to repay all withdrawals to your RRSP. For more information, visit the Canada Revenue Agency (CRA) website for the Home Buyers' Plan (HBP).

Broker's Advice

Ask your Proprio Direct broker how you can benefit from these programs.

CMHC Green Home program

Homes built under the Green Home Program qualify for a 10% mortgage loan insurance premium refund and a premium refund for a longer amortization period (if applicable) when CMHC Mortgage Loan Insurance is used to finance the purchase or construction. For more information, visit the CMHC website - CMHC Green Home program.

Broker's Advice

Ask your Proprio Direct broker how you can benefit from this program.

Signing the promise to purchase


Buyer also have the option of signing a real estate brokerage contract with a realtor. By signing this contract, you officially entrust your broker with a mandate to:

  • Find properties that most likely match your criteria and your needs (including properties that are for sale privately, as well as exclusive unpublished ones).
  • Advise and inform you with objectiveness.
  • Represent you in negotiations and obtain optimal acquisition conditions for you.
  • Carry out all the appropriate verifications for your protection against possible damages caused by costly errors and / or omissions.

Also, if a broker represents you at the time of purchase, it’s the seller's broker (listing broker) that will compensate your broker from his own commission. When there’s an existing contract to purchase in effect, the brokerage compensation will then be adjusted accordingly.

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Canadian reporting requirements in the fight against money laundering

At the signing of the promise to purchase, your broker will inform you about the FINTRAC reporting requirements. FINTRAC is the federal agency responsible for the administration of laws and regulations on money laundering and terrorist financing in Canada.

As required by federal law, your real estate broker must complete a Client Identification Form and request identification. Click here for more information.

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