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Buying your first home will inevitably be complicated and unfamiliar territory. For many of us, it\u2019s a goal we work towards for most of our life. And while it\u2019s always been a future goal, it quickly creeps and becomes a reality. With so many factors to consider, it can be overwhelming and daunting. So where do you start?<\/p>\n
As a first-time home buyer, there are several things you should start thinking about much before you\u2019re actually ready to purchase your home. Below, we\u2019ve outlined our top tips to make your first home buying experience as smooth as possible.<\/p>\n
Buying a home is expensive – it will likely be the largest purchase you ever make. It\u2019s rare that anyone has enough money to actually buy it all at once, which is where a mortgage comes in. When you\u2019re applying for a mortgage, it\u2019s important to shop around for the best rate. While several Canadians often go with the first place they\u2019ve consulted, which can end up costing them several thousands of dollars over their lifetime. Whether it\u2019s through your bank or a mortgage broker, always weigh your options and don\u2019t be afraid to negotiate.<\/p>\n
Doing your research to decide what type of mortgage will work best for you is essential. Do you want to play it safe with a fixed-rate mortgage, which will stay at a consistent interest rate, or do you want to take a chance with a variable mortgage, which reflects current market trends? The same goes for a closed versus open mortgage. With a closed mortgage, you\u2019ll pay a fixed amount every month until your mortgage is over, whereas an open mortgage allows you to pay it off faster. The downside of an open mortgage is the higher interest rates.<\/p>\n
Finally, getting pre-approved is always recommended, especially for your first home. It will help you know how much you can actually afford, and will also show that you\u2019re serious about making a purchase.<\/p>\n
The amount you put down up front will determine your monthly payments while you pay off your home. Being smart about it can save you a lot of money in the long run. In Canada, the minimum downpayment is a percentage of the home\u2019s price. If the home is under $500,000, the minimum is 5 percent, if it\u2019s under $1 million, it\u2019s 10 percent, and if it\u2019s over $1 million, it must be at least 20 percent. Ideally, your down payment will be a higher percentage to decrease monthly payments, however, it\u2019s important to be realistic about how much money you actually have. Don\u2019t forget there will be additional and unexpected costs that come with owning a home.<\/p>\n
Having a real estate agent is not required, but it is definitely recommended. Not only do realtors have access to exclusive listings, they bring their expertise to the table and can help you navigate the industry.<\/p>\n
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If you\u2019re considering buying a home, you\u2019ve likely already thought about where you want it to be in relation to your career, family, and friends. To help narrow down exactly where to invest, things to consider include:<\/p>\n
Before you make an offer, make sure you think ahead to the closing and after closing costs you\u2019ll be faced with. While it\u2019s not legally required, it\u2019s definitely recommended to get a home inspection so you\u2019re aware of the home\u2019s condition and potential issues that could arise. There will always be unexpected costs that come up, and as a homeowner you need to be prepared to cover these.<\/p>\n
Another cost you might not be aware of is a land transfer tax. Depending on the province, land transfer taxes are calculated as a percentage of your home. As a first-time buyer, you may be eligible for a partial refund. You\u2019ll also need to account for legal fees from a real estate lawyer. Hiring one is important as they\u2019ll help review your offer and explain it in plain terms, and deal with legalities on closing day.<\/p>\n
Once you\u2019ve made such a large investment, you should be prepared to protect it. Most lenders require that you have home insurance, and even if it is optional, it is highly recommended. Without home insurance, you risk the chance of losing both your home and your investment. Home insurance protects both the physical home itself as well as the contents inside; if an unexpected hazard strikes or someone breaks in, your insurance will help cover the repair or replacement costs.<\/p>\n
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We currently have several homes<\/a><\/u> for sale in the Greater Vancouver and Toronto areas. Contact us<\/a><\/u> to inquire about these opportunities, or to learn more about buying your first home.<\/p>\n <\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Buying your first home will inevitably be complicated and unfamiliar territory. For many of us, it\u2019s a goal we work towards for most of our life. And while it\u2019s always been a future goal, it quickly creeps and becomes a reality. With so many factors to consider, it can be overwhelming and daunting. So<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6525","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"yoast_head":"\n