More and more Canadians are taking the plunge into homeownership. Regardless of the type of property, you’re looking to purchase; the entire process can seem very daunting and most new home buyers are unsure where they should start. Whether you are buying your first home, purchasing a rental property, or looking for a vacation home, the following tips will help you navigate the Canadian market.
Save for Expenses
Buying a home is an expensive endeavor and saving for a down payment is one of the most important first steps you can take to becoming a homeowner. The larger your down payment, the easier it will be to obtain a mortgage. The more you have saved, the less you will need to borrow to cover the cost of the home price.
Another cost associated with home ownership in Canada is the Canada Mortgage and Housing Corporation’s mortgage default insurance. The expense is on the larger side and is calculated based on the size of the down payment and the mortgage. It is designed to protect the lender and is only foregone if the down payment on the property is over 20%.
Once your finances are in order, the next step on the path to homeownership is figuring out what you can afford. Mortgage pre-approval can be done online through mortgage websites or with a mortgage broker. Before meeting with a broker, consider using a mortgage calculator to factor the down payment, your repayment schedule, and the price range you are looking to be in. The mortgage calculator will help you determine your budget.
First-Time Home Buyer Incentives
First-time homebuyer incentives can help save a lot of money throughout the process. New buyers can take advantage of tax credits, new housing rebates, mortgage default insurance, and land transfer tax rebates. These programs have been put in place by the Government of Canada and help first-time buyers purchase the property of their dreams.
While buying a home can be daunting, partnering with a local real estate agent can help the process go more smoothly. They can help you find properties that meet your needs and fall within your budget. They are also there to negotiate on your behalf and get you the best deal possible.
If you are in the market for your first or even your third home, Merhan Redjvani is available to help you find the right home! Mehran is apart of Re/Max West Realty Inc. and has helped clients purchase homes in the Toronto suburbs. For more information, please contact Mehran directly.