Buying your first home is one of the biggest decisions you’ll ever make. It can also be quite complex if you don’t know what to expect.
Check out this list we put together to help your experience be as smooth as possible!
1. Research The Area And The Market
While you’re checking the quality of the neighborhood and its amenities, also consider distances to work and other destinations.
If you live in a big city, proximity to work often comes at a higher cost.
Research the market thoroughly and decide what the right compromise is given your budget, lifestyle, and needs.
2. Work With A Broker
Brokers work on your behalf to find you the best mortgage for your specific situation.
Essentially, they scour the market for you to locate the most favorable lending terms available. This isn’t always possible at your bank.
3. Make Use Of Government Programs
The Homebuyers Plan allows you to purchase your first home with as little as a 5% down payment.
The RRSP homebuyers’ plan also allows you to withdraw up to $25,000 from your RRSP account to buy or build a qualifying home.
Withdrawing from your RRSP account usually means paying hefty withholding fees and personal income tax, but the homebuyers’ plan allows you to do it tax-free.
4. Don’t Feel Rushed
While it’s always important to act with purpose when buying a home, there will always be new listings tomorrow.
If you cast your net wide enough, you’ll have plenty of options to find something suitable in a reasonable timeframe.
5. Calculate All The Costs Of Homeownership
In addition to your mortgage payment, you also need to factor in utilities (heat, hydro, and gas), insurance, and property tax.
There are also significant closing costs associated with buying a home.