When the credit crunch hit one of the things the Canadian governement did to mitigate the damage to the economy is set a policy that no longer allowed CMHC, Genworth or AIG to insure mortgages for people trying to purchase a home with no money down.  Currently, the rules state that when buying a home, if the purchaser has less than 20% (of the purchase price) to put as a down payment, the bank/lender that is providing the mortgage must get mortgage default insurance.  Just a short time ago, the insurers (CMHC, Genworth and AIG) had programs that allowed purchasers with very good credit to purchase a home with no money down that still gave the borrower access to fully discounted rates.  This announcement made by the Canadian government in October of 2007 put a stop to fully discounted zero down mortgages.  Despite these changes made by the government of Canada, it is still possible to buy a home with no money down.

When someone is purchasing a home, there are a couple of choices they have with regards to the down payment they put towards the purchase.  The down payment is basically the amount of equity (or money) that the buyer is willing to put towards the purchase of a home.

When you purchase a home the Bank of Canada states that banks, trust companies and other lenders are not allowed to lend on a property if

Whether a first time home buyer or not, there are three primary pitfalls you should avoid when buying a home.  Moving forward with these points in mind will save substantial time, money and effort.

Buying a home is one of the most involved and important decisions a person could ever make in their life. So it is not so unreasonable to believe that it can be quite an emotional roller-coaster for everyone involved. However, letting your emotion and the stress of limited time greatly influence your final decision in purchasing a home can be dangerous. After all, you could spend years, perhaps the rest of your life there, so it can't be a move made in haste. That does not mean that your emotions should be totally ignored, but that they should be controlled. Keep them in check, stay smart, focusing on what is really important when cruising the home market.

When it comes to purchasing a home, there are many ways to get the job done. For a first time home buyer, using a mortgage broker is an excellent idea for a host of different reasons. Purchasing a home is a difficult process, but it doesn't have to be completely overwhelming. There are people out there who can help you make the process as seamless and as painless as possible, so you'd be smart to use those resources when making your purchase. A mortgage broken can be one of those individuals, so as a first time home buyer, you should be looking for the best possible one. Here are reasons to use a mortgage broker when purchasing a home.