FIRST TIME BUYERS FAST FACTS
Buying your first home can be a daunting prospect. Learn the pros and cons of renting vs owning, the steps involved in buying and get access to a Handy Home Buyer checklist & Costs worksheet.
Buying Your First Home?
When you decide to purchase your first home there are many factors to consider. How much can you afford? Do you qualify for a mortgage? What type of mortgage should you get? How much of a downpayment do you need? What should you budget for closing costs? Here are some resources to assist you:
Click below to download this informative free pamphlet.
Use this handy mortgage calculator to calculate your mortgage:
Information deemed reliable, but not guaranteed
MORTGAGE CALCULATOR
Before you start house hunting, use this easy mortgage calculator to figure out how much your monthly mortgage payments will be. Simply enter these values:
- Total Amount: The total price of a home you are planning to purchase.
- Down Payment: The dollar amount you are planning to put as a down payment.
- Interest Rate: The current average mortgage rate in Canada.
- Mortgage Period: The total time in years over which you are planning to amortize your mortgage.
UNDERSTANDING MORTGAGES:
Don’t be baffled by mortgages. A mortgage is simply a type of loan used to purchase or maintain a real estate property, whether that be residential, commercial, or industrial. When shopping for your home or investment property, thoroughly reviewing and evaluating your finances ahead of the mortgage application is critical for making a sound decision.
Learn the mortgage basics, terms and payment options available in Canada.
Determining Your Budget
The first step to determining your budget for purchasing a real estate property is getting a mortgage pre-approval. While not an official mortgage guarantee, pre-approval can be filed and completed on the same day, does not require supporting documentation, and fairly accurately represents what you can expect to get approved for.
Other factors to consider when evaluating your budget include:
- Your monthly income and expenses, as well as how much you can realistically allocate towards mortgage payments;
- Available down payment amount and whether you would be required to pay CMHC fees;
Your credit score and Debt-to-Income ratio, and whether you can improve them prior to applying for a mortgage.
First-Time Home Buyers’ Incentives
Whether you are working with a mortgage broker or directly with a lender, understanding how you can leverage your finances with incentives can help you achieve homeownership that much sooner.
As such, buying a home for the first time is an excellent opportunity to benefit from the incentives available in Canada:
- First Home Savings Account (FHSA). An FHSA is a registered plan which allows first-time home buyers to save to buy or build a qualifying home tax-free.
- Home Buyers’ Plan (HBP). Under the Home Buyers’ Plan, first-time home buyers may withdraw up to $35,000 from their registered retirement savings plans (RRSPs) to be used for buying or building a qualifying home.
Additionally, the First-Time Home Buyer Incentive was available until March 21, 2024. This helped people across the country to purchase their first homes. Under the program, the government of Canada provided 5% or 10% of the home’s purchase price to use toward a down payment in the form of a shared equity investment.
MOVING TIPS
After you’ve found your home it’s time to plan for the actual move. As a first-time homebuyer, it’s best to plan ahead and budget wisely before moving. Are you considering hiring movers or getting friends and family to help? By staying organized and prepared, the moving process can be smoother and less stressful. Use our handy moving checklist, moving schedule and change of address checklist to lend a hand.
Working With Realtors
Whether you are selling your current home or shopping for a new one, working with an experienced professional who knows all the ins and outs of the local real estate market is critical. Not only can an experienced realtor ensure that you can access even off-market properties, but they will also provide valuable guidance and support throughout the entire process. Whether selling or buying, your realtor will help to negotiate the optimal price on your behalf, take care of all the necessary paperwork, and connect you with the right professionals, such as a mortgage agent, a home inspector, and a real estate lawyer.
COMPREHENSIVE BUYERS GUIDE
With our comprehensive buyer’s guide, you can benefit from invaluable assistance with step-by-step instructions, valuable tips, and essential information about the home-buying process. From understanding finances and mortgages to navigating the real estate market, this guide empowers would-be homebuyers with knowledge, helping you to make informed decisions and avoid common pitfalls.
Click below to view and download this free guide today!
