If you are a first time home buyer or have never worked with a Realtor or even if you haven’t purchased a home for a decade….there is no such thing as a dumb question so ASK US!! Please tell us if you have limited knowledge in the Home Buying process as we will take extra care to be very thorough. We want to lock arms with you and Coach you through the entire process!!
We know that making the decision to purchase a new home is the easy part and the Purchase process can be very overwhelming and sometimes confusing without the assistance of a Professional Realtor to guide you through. Our TEAM is here to help!!
WHERE DO WE START????
We recommend determining a budget…your comfort level for total monthly payments take into consideration your existing payment such as vehicle, insurance (vehicle & life), investment fund commitments (RRSP & RESP) , student loan (if applicable) and then start working to determine your comfort level with future payments such as mortgage payment, house insurance, property taxes and utility costs…once you determine that number the pieces of the puzzle will really start to come together.
We always recommend getting a mortgage pre-approval…speak with your finance professional and go over the above calculations and they will determine the correct mortgage amount for you and your new home purchase. If you aren’t working with anyone as of yet please let us know and we can connect you with someone within our network of professionals.
Potential Possession??? When would be the ideal time of the year for you to move…is there a lease expiring…a quieter time of the year at your work…any major family events coming up…moving can be exciting but also a little stressful so finding the right time and taking these exterior factors into consideration is very helpful. Some people start the home purchase process several months prior to actually moving!
What are your closing costs going to be:
There are lots of factors here as well…what you are purchasing will make a difference single family home in a rural area vs a city center; purchasing a condo…will an extra payment to the reserve fund be required; purchasing a mobile or modular home on leased land or owned all of these factors make a difference but on average…We recommend allowing 1.5%-2.5%
Your closing cost include: land transfer fee, property tax adjustment, lawyer fees, survey fee (if required) or title insurance. You could also be looking at additional costs of a home inspection if required or hiring movers.
How much down payment is required??
This could be a lot less than you expect…everyone can have one CMHC mortgage (upon qualification) which means a down payment as low as 5% down….if you have additional mortgages on other properties those will have to be a conventional mortgage with a larger down payment.
The down payment can be obtained by making a withdrawal from your RRSP fund and the funds aren’t taxed as long as you repay the withdrawal amount within 15 years. The federal government Home Buyers’ Plan allows up to $35,000 withdrawal per person.
Discuss options with your Financial Institute as some lenders offer a Flex down program.
You may have assets that you plan to sell to generate the funds.
Your down payment can also be gifted by a direct family member.
SO BREAKING THE RENT CYCLE FOR A FIRST TIME HOME BUYER MAY BE EASIER THAN YOU EVER THOUGHT.
LIKEWISE…LEVERAGING EQUITY FROM YOUR EXISTING HOME TO OBTAIN A REVENUE PROPERTY OR RECREATIONAL PROPERTY MAY BE EASIER THAN YOU EVER THOUGHT.
Allow us the opportunity the help you with the process and we will not disappoint you!!!