First Home Advantage Mortgage

The program is designed to assist first-time home buyers by providing access to up to $25,000 at a low interest rate to use a down payment on a home purchase. The loan qualification and mortgage qualification will be completed for your new purchase. 

First-time homebuyers who meet certain income and credit requirements may be eligible for the program. Specific eligibility requirements are based on internal policies, CMHC or Sagen Insurance policies and underwriting guidelines. Note: This program is available through Sagen for purchases up to 90% loan to value. 

Qualified applicants may borrow up to a maximum of $25,000 to be used exclusively as a down payment for purchasing their first home. Amortizations of the loan can be up to 10 years. 

The program offers a low-interest rate on the borrowed amount, typically lower than standard personal loans or credit options. Specific interest rates can vary depending on CUMIS insurance requirements. 

The borrowed funds are to be used for purchasing a primary residence, which can include single-family homes, condominiums, townhouses, and mobile homes. Conditions apply based on the insurer’s underwriting guidelines. 

Deposits are typically required to ensure buyers and sellers will do what they promised in the contract. Sellers typically require a deposit once an offer is accepted on their property. The deposits are meant to guarantee the performance of the contract. It’s important to note that the deposit does form part of your down payment. The deposit required for the new property purchase must be paid by your resources. The loan provided will not be provided until the closing date of the property purchase. 

The maximum amount is based on finances and other varying factors. It’s best to speak with your lender directly as everyone’s financial picture is different. 

Upon approval, the loan proceeds will be held until a property purchase is made. Pre-qualification and the loan offering will be held for 90 days. It is important to note that the loan proceeds will be transferred directly to your solicitor for the new property purchase. 

In order to qualify for this program, we will need to ensure you have enough funds available to accommodate all closing costs. This would be legal fees, property transfer fees and any other applicable fees. 

Both the CMHC and Sagen Insurance will add a premium to your mortgage amount. This is standard for all purchases with a down payment of less than 20% of the total purchase price. The premium rate is 4.5%. Other fees can include legal fees and other closing costs paid directly to the solicitor. 

If the mortgage is moved to another financial institution, the loan would be required to be paid off in full. This is typically handled with the solicitor. At the time of signing the mortgage agreement and loan agreement, there is an All-Obligations Form signed that states that the loan is secured under the property that was purchased. This will be valid until the loan is re-paid in full. 

The promotional rate is valid for five years. At the time of renewal, the loan will be renewed into standard unsecured loan pricing. When the loan is up for renewal, we recommend speaking with your lender regarding options that may be available such as a mortgage refinance, equity take out or paying off the loan in full. 

Yes, this program is available for first-time home buyers who are looking to purchase. As an example, if you have $5,000 saved and you are only looking for $20,000, you can apply for $20,000 as opposed to the full $25,000 loan. Note: If you have funds in place but need additional funds for a larger purchase price, this program may be suitable. If you have further questions, please discuss your options with our Solution Centre, mortgage specialists or any of our branches. 

We suggest you work with your lender to determine all borrowing options. This can be in the form of looking for a co-signer, financial planning etc. Every situation is different, and our lenders can assist you with the next steps.