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Mortgages in Alberta work much the same as in the rest of Canada and the U.S. with variable rates and terms available depending on the nature of the purchase. The regulations recently changed so that now Canadian homebuyers can get by with as little as 5% down payment, while recreational, investment or revenue homes would require a more substantial down payment. This would also apply to non-residents who generally would need to put down 35% in order to obtain a 65% mortgage. Each case is different, so contact us and we'll put you in touch with a mortgage expert.
Most banks offer pre-approved mortgages, which give the potential purchaser a clear idea of the price-range they can look to purchase in. This is highly recommended as it can save a lot of the time and frustration on behalf of both the buyer and the seller. Conventional financing calls for a 25% down payment and 75% financing and anything less than 25% down payment is known as High Ratio Financing and must be CMHC insured. A new federal government program called the "Homebuyers Plan" allows first-time purchasers to borrow funds for the down payment on a home from their RRSP. Some restrictions apply.
There are many different types of mortgages such as assumable mortgages, portable mortgages, open, closed or variable rate mortgages plus mortgages that offer increased monthly payment options, lump sum pre-payments and many other variables. This allows the borrower to structure a mortgage specifically to their needs. All of the local banks can design a mortgage to suit, or one of our sales consultants would be pleased to offer you some assistance or advice.
Goods & Service Tax
The Goods & Service Tax (G.S.T.) is a federal tax of 7% on most items, including the purchase of raw land, new houses or condominiums and commercial properties. (The Province of Alberta is sales tax free, the only province in Canada that does not have this extra tax.)
Major Banks in both Banff & Canmore include:
Click on underlined bank name to get their latest mortgage rates
For your convenience we have included a handy amortization calculator to help determine monthly mortgage payments.
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