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Mortgage Finance Companies, Mortgage Investment Corporations (MIC), Credit Unions, Banks and other Federally Regulated Financial Institutions (FRFI) are all different lenders offering mortgages and underwriting loans.

Lenders will have different channels – some will have branches and brokers that offer their services. In contrast, others will be direct to consumers to avoid the need to give commissions to external salespeople and pass the savings directly to their consumers.

You will need to be aware of which channel you’re working with, as pricing can vary in various channels due to the need for the lender to compensate the salesperson. You’ll also need to understand how the salesperson is being paid and how it affects your mortgage rate.

It is recommended that you work with a qualified mortgage professional when arranging your mortgage. A qualified mortgage professional, unlike a banking advisor who is a generalist, specializes in mortgages and can provide in-depth process insight and knowledge as you go through the application and qualification process.

A qualified mortgage professional can come with various names depending on the province they are registered in: agent, broker, sub-mortgage broker, salesperson or mortgage associate. However, they can provide the same services, must meet the same educational requirements and be provincially regulated. Some provinces, such as Quebec, with its prime directive to protect consumer interests at each stage of the process, have more rigorous education and regulations than all other provinces.At nesto, our mortgage experts concurrently hold professional designations from one or more provinces. We believe that our clients will receive the best advice and care when they speak with specialists that exceed the industry status quo. Is your mortgage professional licensed?

The HBTC allows first-time home buyers to claim up to $10,000 on personal tax returns, resulting in up to a $1,500 rebate.

Pros Of HBP For RRSP

Below is a list of the advantages of the HBP for RRSP:

• Allows you to withdraw up to $35,000 with an annual contribution limit based on 18% of your gross taxable income.
• You can withdraw from multiple RRSP accounts as long as you own each and do not exceed the $35,000 limit. 
• You can use the HBP to buy or build a qualifying home for yourself or a related person with a disability. 
• You can use the HBP more than once if you’re considered a first-time homebuyer under the program. 
• There is a 2-year grace period before you must begin making repayments to your RRSP.
• You could start saving into your RRSP as soon as you’re considered legal working age in your province and have completed your first income tax return.

Cons Of HBP For RRSP

Below is a list of the disadvantages of the RRSP:

• If you have a locked-in RRSP or pension, you won’t be allowed to withdraw from this type of account. 
• You must make yearly repayments to your RRSP to repay the amount withdrawn, or it will be considered taxable income and taxed at your marginal tax rate. 
• You must have the additional funds to contribute to an RRSP account to use them under the HBP.