The guy pictured above was a rookie once too…
Yet like most things in life, a little bit of planning can go a long way to putting any anxiety at bay. While there are a number of different factors to look at; from where you’re looking to buy to how much you can afford – here are four key items to consider when looking at your first home purchase:
1. Your Downpayment:
The rules in Canada dictate that the minimum down-payment a buyer can put down on a property is 5 per cent; and for anyone putting down less than 20 per cent, mortgage default insurance is required. The cost of mortgage insurance depends on the amount of downpayment you have versus the price of your home as well as the amount of the mortgage. You can find the CMHC insurance calculator here.
2. Have you factored in extra-costs?
When house-hunting, you’ll have to take into account far more than just the purchase price of the property. There are closing costs such as any land transfer fees, the costs of a lawyer, title insurance, home-inspection fees or the status certificate of the property (for condominiums). Closing costs on a home can range anywhere from 1.5 per cent to 4 per cent of the cost of the property. Once you’ve moved in, you’re also on the hook for property taxes and any possible maintenance or condo fees – something that you should take into consideration when comparing properties in an area of interest.
3. Are you aware of the perks?
There are advantages to being a first-time home buyer as well! The government offers a ‘Home Buyers’ Plan‘ allowing first time home buyers to borrow up to $25,000 from their RRSP accounts without incurring any taxes on the amount. First time home buyers are also eligible for a land transfer tax rebate depending on their province. First time home buyers may also qualify to receive a rebate on the municipal land transfer tax in the city of Toronto.
4. What’s your plan for your mortgage?
Getting the right real estate agent on your side is of the utmost importance. So is finding the right mortgage and financing advisor. Your mortgage is certainly a lot more than just your rate. Have you considered what would happen if you wanted to move in 2 years? Maybe you need a bigger place to start a family? Maybe you need to move half-way across the country for that dream job? There are costs and clauses involved in these scenarios – and it’s the smallest print that can come with the biggest costs.
Although being a first time home buyer can seem daunting, there are a number of great options and resources available to you. If you haven’t yet found the right real estate agent – the MonsterMortgage.ca VIP Program is one of the best programs currently available in the city. You’ll have the opportunity to work with an experienced & proven team – and you’ll score 1% cash back too.
Fill out the form at the top of the page, and get started as a VIP today!BACK TO NEWS FEED