Whether you are looking for your first place, ready to upsize or just wanting a change, here are 6 easy steps that can make buying your new home a little easier.
1. Work with an advisor
You don’t have to figure out your plan alone. Talk to an advisor. They will be able to look at your situation, provide the right resources, budgeting tools and craft an action plan that will help you find a house to call home.
2. Save for a down payment
From the minimum requirement, mortgage default insurance and stress test regulations, there are many factors to consider when it comes to saving for a down payment.
A down payment is only a piece of the pie. Some other expenses to consider are land transfer tax, GST charges, realtor and lawyer fees, title insurance and home inspection costs.
3. Create a budget
So now you’ve thought about your pre-mortgage expenses, but a mortgage is just the tip of the iceberg. A budget is a great way to estimate what your monthly expenses could look like once you’re in your new home.
From moving expenses, strata fees, electricity costs and property taxes – there’s a lot to consider!
4. Be aware of promotions, rates, grants and rebates
If this is your first home, you may be eligible for Home Buyers Plan (HBP). The HBP is a federal program where you can withdraw up to $35,000 from your RRSP, tax-free. For more information about the program, visit the Government of Canada website or talk to an advisor.
If you’re purchasing a newly built or heavily renovated home, you may be eligible for the GST or HST rebate.
5. Get pre-approved
You wouldn’t go shopping without knowing what’s in your bank account, right? A pre-approval will tell you what you can afford to purchase, so you can start searching for your home with ease. Some institutions offer a 120-day rate guarantee, so you’ll have peace of mind knowing that you have your financing arranged and that your rate won’t change.
6. Put in an offer and seal the deal
Put that down payment to good use! Once you’ve found “the one”, it’s time to put in an offer, seal the deal and it’s home sweet home. Get ready to create new memories (and make mortgage payments).
Get expert advice
Have questions? One of our advisors can discuss your options and help to find a mortgage that's right for you. Contact us or apply for a pre-approval today. Home sweet home could be just around the corner.