|
|
Tips for first time homebuyers
1)How to save for your down payment
Firstly, determine the down payment you can save monthly and evaluate the amount for on-going costs, maintenance as well as for unexpected expenses. Remember, the more of a down payment you have, the less you will have to borrow. If you have at least a 20 per cent down payment, you will not have to pay mortgage default insurance premiums (note that some exceptions apply).
If you have RRSPs, explore the Home Buyers' Plan to see if it could apply to you.
2) Get ready to start shopping for a home
Make a wish list of things you would like your home to have and prioritize what you think is important. Determine where you would like to live and begin your search for the right home. If you wish to purchase a new home/an existing one – both may have advantages as well as disadvantages. Once you have decided, you can visit new development sites or have your realtor help you find the homes available in your chosen neighbourhood.
3) Things you should know once you find the right home and before making the offer
· What are the property taxes?
· What are the condo fees?
· What are the heating costs?
· Is there easy access to public transit?
· Are there schools nearby?
· Is the location right for your whole family?
· Are there stores close enough for you?
If you are comfortable with the answers, ask your realtor to complete an Offer to Purchase. The offer should include your offering price, closing date and the specific "conditions" you want included. Sometimes, negotiations around price may be necessary. You may also want to have your lawyer review your offer to ensure your interests are protected therein.
4) Home purchase offer has been accepted, what's next?
If you already have a pre-approval for your mortgage, all you need to do now is formalize it with your lender. The home is subject to the lender's approval, and may require an inspection and/or appraisal. If you have any questions or concerns, this would be the good time/opportunity to raise them.
Remember, that choosing the right mortgage is as important as choosing the right home. So make sure that the mortgage solution you choose is the best for you.
|
|
|
Mortgage best buys and tools |
|
|
|
| More from Your Mortgage |
|
| When
it comes to household insurance, there are two kinds of
policy.
* Buildings insurance covers the structure of the home
itself, as well as the fixtures and fittings
* Contents insurance covers the contents you would take
if you moved.
|
|
