A mortgage is a loan that you take to buy a home. The loan is secured by the property value and your ability to repay the loan. The amount borrowed is called principal, and the cost of borrowing the money is called the interest. The borrower is the mortgagor, and the lender is the mortgage. There are a number of different types of mortgages.

Your BTR Real Estate professional can direct you to local mortgage brokers and lending institutions.

If you (or your spouse) have not owned a principal residence, you are eligible to participate in the RRSP Home Buyers Plan. Each spouse can withdraw up to $20,000 for a total of $40,000 from their RRSP's under the plan.

The money you withdraw from your RRSP must be repaid over a period of not more than 15 years to retain your tax deferred status. Payments begin the second year following the year in which the withdrawal was made.

:: 5 % Down Payment Plan

Purchasers who can easily afford monthly mortgage payments but are having difficulty accumulating a down payment may be eligible for financing of up to 95%, based on the plan. The property must be used as a principal residence and can not exceed a pre-established price ceiling.

You should be prepared for the many costs associated with the purchase of a home. Some of the more common costs are:

• Legal Fees.
• Fees for the registration of your deed and mortgage.
• Mortgage processing fees.
• Mortgage insurance and application fee.
• Home, fire, mortgage, life and disability insurance.
• GST (on newly constructed homes).
• Adjustments for property taxes and/or utility costs already paid by the existing owner.
• Connection charges for utilities such as gas electricity and water.
• Provincial taxes.
• Land transfer tax.
• Land survey fee.
• Home inspection (if desired).
• Moving expenses.
• Appliances, furniture, draperies and gardening equipment.
• Landscaping.
• Decorating.
• Repairs.

Your BTR agent can provide you with estimates of many these costs.