What Every First Time Buyer Needs To Know
Friday Mar 19th, 2021
Buying your first home is exciting, and stressful. We’ve put together a list of things you need to consider before taking the big leap into homeownership.
ONE: What can you afford?
The first thing you should do when you are considering buying a home is figure out what you can afford.
You need to know your annual income, living costs, condo fees (if applicable), heating costs… You will also need to list any credit card debts, loan repayments… We’ve got a Mortgage Affordability Calculator that makes it really easy.
TWO: Down Payment. In Ontario there is a minimum down payment requirements, they vary depending on the purchase price of the property. If your down payment is less than 20% you are required to buy mortgage insurance. If you’re self-employed or have a poor credit history, your lender may require a larger down payment. Find out if you are eligible for First-Time Home Buyers incentive. It’s a federal program that offers first-time homebuyers 5-10% of the home’s purchase price to be put toward the down payment.
THREE: A pre-approved mortgage is key in the Toronto market. It gives you the ability to act fast in this competitive market. Now that you know what you can afford and have a down payment in place it’s time to go talk to a mortgage broker or your bank’s mortgage specialist and get a mortgage pre-approval.
FOUR: Now that all the dirty work is done, here comes the fun! Make a list of what your dream home looks like. What neighbourhood do you want to live in? Do you want a fixer-upper or a turn-key property? Is it close to transit, parks, shopping? What kind of schools are in the neighbourhood?
FIVE: Picking the RIGHT real estate agent.
A trusted, reliable, knowledgeable real estate agent is critical in buying the right home for you. Not sure who that is?
Consider the following...
- Someone who is an expert at what they do and the area that you want to buy-in.
- A real estate agent speaks the ‘language’ of buying & selling and they understand the strict code of ethics that must be followed.
- They have access to much better searching power, & understand how to negotiate for the best possible outcome for you.
- A great real estate agent has the experience to recommend everything from moving companies to mortgage brokers & lawyers that fit your specific needs.
If you’re ready to start your journey into homeownership I’d love to chat with you about next steps.