Mortgages have changed and so has the market. We checked in with Tuli Parubets a local mortgage broker and asked her what her advice was for First Time Buyers trying to get into today's market. Here's what she had to say.
First Time Home Buyer: 10 Things You Must Know!
1.Know how much you can afford
Create a budget, incorporate all your expenses, it's not only about how much you should buy the home for, it's also what your monthly payment will look like.
2. Make a wish list
Please make a wish list made up of wants vs needs as your realtor would love you for it and only you know what you would not compromise on.
3. Down payment vs Insurance (CMHC/Genworth/Canada Guaranty).
Your down payment should be at least 5% of the price (100% financing is no longer permitted). Visit CMHC, Genworth sites for the amount of premiums. The premiums are not just based on down payment, your employment status is also a factor.
4. Don't forget about closing costs
Closing costs are over an above the down payment and can range anywhere from 1.5 to 3.5 per cent of the total cost of your home.
- You might be expected to pay for some or all of the following:
- Home inspection fee
- Legal fess
- Property transfer tax (land transfer)
- Appraisal fee
- Title insurance
- Property and fire insurance
For more visit our blog: Closing Costs ~ Some of the Costs You Need to Consider
5. Understand the different payment options
You can pay for your mortgage in a variety of ways including monthly, bi-weekly or weekly payments.
6. Buy with your head, not your heart
Letting your emotions overtake common sense might result in paying more for your home. at the point of sale, or over the long run - and you might never recuperate your losses.
7. Once you find your home, stop looking
It's the golden rule for choosing anything from a car to a wedding dress to a life partner - once you've found what you are looking for - stop looking!
8. Find out about First-Time Home Buyers' (FTHB) Tax Credit & Home Buyer's Tax Credits (HBTC)
To obtain information on the FTHB and the HBPC call 1-800.O-Canada or visit the Canada Revenue Agency website . For more about the First-Time Home Buyers' Tax Credit visit our blog: First-Time Buyers Incentive Program
9. Contact me so I can answer all your questions, help clarify the above information and get you pre-approved and have you on your way.
10. BREATHE
You can connect with Tuli by email: info@Tmfs.ca at 416.768.3620 or at 647.896.2233. Check Tuli out online at Torontomortgagefinancing.com or on Instagram at @torontomortgagefinancing.
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