First Time Home Buyers Guide
Pride of Home Ownership
Pride of home ownership is the number one reason why Canadians desire their own home.
- You will have full control of your property and there will be no landlord looking over your shoulder.
- Not having to pay monthly rent payments.
- You will be able to make any home improvements you desire. This will benefit you by any appreciation that results.
- It gives you a sense of stability and security.
Over the past few years, homes have appreciated considerably and have added to owners’ net worth.
- Unlike stocks and bonds, you can enjoy living in your real estate investment.
- Your principle residence is exempt from any capital gains taxes.
Each month, part of your monthly payment is applied to the principle balance of your home loan. This eventually builds a large equity base where you can borrow against your home equity for a variety of reasons:
- Home Improvements
- Children’s Tuition
- Starting a New Business
Are You Ready To Buy A Home?
Do you have the financial resources?
- A good starting point is to have 5% of the purchase price of a home.
- Think about any other priorities in your life that would interfere or would require your savings.
Do you expect to stay in your home for a long time?
- Moving can be expensive, it’s important to build some equity first.
- Always have a game plan – Your job and home life should be stable.
What Can You Afford?
Go through the mortgage pre-qualification process.
- You will find out how much of a mortgage you will qualify for.
- Mortgage rates can vary considerably, therefore, it is important that you shop around for the best rate, terms, and options.
First-time homebuyers may take advantage of the governments Home Buyer’s Plan, where you can withdraw up to $25,000 from your Registered Retirement Savings Plan (RRSPs) to buy or build a qualifying home for yourself. Call us and find out more information and how it could benefit you!
Questions to Ask When Assessing Home Features:
Think about your short and long-term goals.
- How many bedrooms and bathrooms will you need?
- Needing a home office?
- Do you want a garage, fireplace, and swimming pool?
- Downtown or suburbs?
- Do you need a large backyard? (Kids/pets)
- What service providers are in the area?
- How much are the annual property taxes?
- How much are utilities each month?
- Have there been any major repairs to the house?
- Any problems with insects?