Ready to buy your first home? These 7 tips will give you the keys to the house of your dreams.
1. confirm you’ve got the minimum deposit
Did you know that your minimum down payment is determined by the purchase price of your sonic condos? The absolute minimum down payment in Canada is 5% for homes that cost $ 500,000 or less. The biggest hurdle for first-time homebuyers is saving for a down payment. Therefore, a savings plan is essential. A savings plan helps you set a down payment goal. This is important because a larger down payment will lower the amount you need to borrow for the home. Once you’ve calculated the amount of down payment you can afford, you can use Ratehub’s mortgage payment calculator to estimate what your monthly payment will be.
2. Get pre-approved! Pre-approval! Pre-approval!
So you’re looking at house listings and visiting open houses, who will you call? It is NOT your real estate agent! Most Canadians think that the first step in the home buying process is to contact a real estate agent and start looking for homes. This. is. Once you’ve saved enough for your target down payment amount, the first thing to do is get your mortgage pre-approved. Call your mortgage broker or bank mortgage specialist first before your real estate agent.
3. make sure you can afford the house you want
Many of us dream of buying a home, but we must also be realistic about what kinds of properties we can afford. Your household income, monthly out-of-pocket expenses, and housing costs, such as property taxes, sonic condos fees, and heating and electricity bills, all influence the total amount you can borrow. Use Ratehub’s affordability calculator to estimate the maximum house you can afford.
4. Compare prices!
Looking for a home when looking for sonic condos, so be sure to do the same when you get a mortgage. Don’t just go to your local bank branch and expect to receive the best rate (because you probably won’t!). Research and compare mortgage rates. You should also consider hiring a mortgage broker to negotiate rates on your behalf. Keep in mind that even half a percentage point less in your mortgage rate can make a big difference to your regular payments and the amount of interest you’ll pay over time. .
5. Consider using a mortgage broker
Did you know that mortgage brokers can get you a mortgage from a big bank, but at lower rates? Mortgage brokers compare mortgages from a variety of banks and financial institutions to find the best options for their clients. brokers have access to mortgage products and special rates from trust companies and credit unions. they also work with smaller lenders who do not have an equivalent overhead cost because the big banks (and therefore often have lower rates and fewer fees). The best part? Most mortgage brokers do not charge you for their services. It is the lender who pays the broker’s commission. All negotiation and paperwork are handled by the broker and they will assist you in the application process, from pre-approval to home appraisal.
6. Take Advantage of First Time Home Buyer Programs
As a first-time homebuyer, you will want to familiarize yourself with various programs that apply to your situation. Whether it’s a refund you may qualify for or a tax-efficient way to fund your down payment, there are several government programs listed below that can help you save some money when you buy your first home:
The homebuyer tax credit currently equates to a $ 750 rebate for all eligible first-time homebuyers.
The Canadian government’s Home Buyers Plan (HBP) allows first-time homebuyers to borrow up to $ 25,000 from their RRSP for a down payment, tax-free.
If you qualify, land tax returns are available to first-time homebuyers within the provinces of Ontario, British Columbia, and Edward Island. There is also a land transfer tax refund available to first-time homebuyers in the City of Toronto.
If you buy your home before it is built, or if you substantially renovate an existing home, you may qualify for a refund of a portion of the sales tax. The amount of the GST / HST sonic condos rebate you may qualify for depends on the purchase price of the home and can only be claimed if the net purchase price is
7. Keep saving
Your down payment and monthly mortgage payments are just the beginning of your sonic condos buying journey. There are many additional costs that come with buying your first homes, such as closing costs, land transfer tax, and CMHC insurance. That’s why a savings plan is essential even after you’ve saved enough for your down payment. Pro Tip: A good rule of thumb is to set aside 3-5% of your home’s purchase price to cover your home closing costs. You can use Ratehub’s payment calculator to calculate the amount of cash you will need.