Low income Canadian home loan: Lowest rates, fast service

A 30 year fixed rate is your best bet for a low income Canada home loan. Remember, if you feel you were pressured into a low income home loan, you can cancel within three days. We'll discuss this more below.

With the 30-year fixed-rate you will be able to keep your payments down by making them over an extended time period of 30 years. This loan is the easiest fixed-rate to qualify for and provides the maximum interest deduction for taxes. If you are planning to stay in your home for a long time and would like to have the extra money for other purposes, this type of low-income home loan is your best bet.

Do not be pressured into signing for a low-income home loan you can’t afford. If you feel you have been pressured, act quickly. You have a legal right to cancel in writing within three business days of signing loan documents unless the loan is to initially purchase your home. Borrowers who refinance their mortgage also have a three-day, federally guaranteed cancellation period. Remember to send the cancellation notice in writing and by certified mail. Also, you don’t have to sign if you go to closing and there are fees or charges you did not expect. 

If funds are tight, an important step in getting a low income home loan, is deciding how much of a down payment you can afford. Sometimes down payments can vary from 0 to 3 percent. Don’t forget to inquire about Federal, state and local agencies that provide mortgage programs to help low and moderate-income families subsidize their down payment costs. In order to determine how much money to lay down for a low income home loan, borrowers should break down present assets into a manageable list, available sources of down payment include checking accounts, savings accounts, borrowed funds, tax returns and gifts from family members. Some types of assets, such as gifts, do not need to be repaid and do not fall into the debt category for your low income home loan.