Most people take out mortgages to purchase a home. These mortgages are generally paid off on a monthly basis. But, for some people getting the right mortgage plan may be difficult due to lack of proper information and for some due to lack for credit history. The government provides mortgage assistance in Canada so that the citizens can overcome the difficulty in taking out a mortgage.
Assistance to Canadian Citizens
The Canadian government has come up with mortgage assistance schemes for its citizens. One form of assistance is the mortgage insurance. The Canadian Mortgage and Housing Corporation provide this insurance to citizens who are new to Canada and who find it difficult to get mortgage due to the non-existence of a proper credit history. This mortgage help scheme enables a new citizen to purchase a home with a down payment of five percent of the cost of the home. There are of course certain criteria to qualify like a work visa, at least three months of full time employment, and proof of an application filled to obtain landed immigrant status. The scheme does not ask for extended credit history but only the minimum like proof of regular payment of rent and utility charges. This kind of mortgage assistance in Canada makes it very easy for a newcomer to purchase a home and live comfortably. The corporation also has an Affordable Housing Program which is an interest-free mortgage plan which extends to 20 years. The catch with this particular mortgage assistance is that there is a requirement for residence in the said home for the entire loan period. There are many other kinds of mortgage plans also available to citizens like the Home Buyers Plan which enables the buyer to get a loan from his Registered Retired Savings Plan. The corporation also has an agency specially assigned to assist homeowners who are in distress due to the mortgage.
Other than the assistance to own a comfortable home, the housing corporation also provides other sorts of financial assistance to homeowners. The Homeowner Residential Rehabilitation Program is one such scheme. This scheme is aimed at low-income people and assists them to do emergency repairs in their homes. The homes need to be below a certain standard with regard to its condition (with regard to sanitation and safety) to avail this kind of assistance. The repairs on the home can be done with a mortgage. In addition, there is the Emergency Repair Program too. This is a Canada mortgage house repair help that is availed by many aboriginal families in the country. This is because the loan is available to low-income families who also live in a remote area of the country. To qualify for these mortgages, it is essential that the value of the home be below the housing corporation set rate for the area, there must be substantial problems with the home (electrical, plumbing, heating, and so on), and it should be at least 15-year old home.
With this kind of mortgage assistance in Canada, owning a home and living comfortably in one is not a far-off scenario.