Getting ready to buy your first home in Canada is an exciting time for many newcomers. Make informed decisions so you make the right choices for your home ownership and your finances.
5 THINGS TO KNOW WHEN BUYING YOUR FIRST HOME:
1. Get The Full Picture
Download the ‘Buying Your First Home in Canada‘ guide. This guide has information on types of homes, the process of buying a home, financing, and real estate agents and builders.
2. Get Financing Pre-Approved Before Shopping
It’s a good idea to sit down with your lender or mortgage broker to discuss your needs and get your mortgage pre-approved. Pre-approval means that your lender commits to giving you a mortgage up to a specified amount, at certain terms and conditions, including the interest rate. This commitment will usually be valid for up to 90 days. Pre-approval doesn’t lock you into the mortgage. You are still free to check other arrangements.
3. Make Your Mortgage Work For You
There are some important things about mortgages you should consider before signing for what may be the biggest purchase you’ll ever make. Key among these is
(a) Amortization Period
(b) Payment Schedule
(c) Interest Rate Type and
(d) Mortgage Term.
Understand the language of mortgage – what the terms mean and what are the options that can save you money.
4. Tax Credits
You can save a fair amount of money by taking advantage of Government tax credits such as the First Time Home Buyers Plan. Talk to your Accountant to be in the know.
5. Location. Location. Location.
As you may already know, in real estate investment location is everything. The other aspects to consider while making your first home location decision is school zones, travel times to work, property taxes rates, and access to community facilities.
WHERE TO LOOK WHILE FINDING THAT PERFECT HOME
- Check the ‘new homes’ section in daily newspapers and real estate magazines available at newsstands, convenience stores and other retail outlets.
- Visit real estate websites, such as www.realtor.ca, for information and photos on a wide range of properties.
- Drive around a neighbourhood that interests you and look for “For Sale” signs, or visit new developments (areas where new homes are being built).
- Tell friends, family and work colleagues that you’re looking for a house. You might hear about homes that are on the market.
We wish you a successful search, and happiness in your new home.