Buying a home in Canada isn’t so easy, especially with the growing housing market. A lot has to be put in consideration particularly if you are thinking of taking up a mortgage. You have to think about how much your wallet can take. Study the market and look for places that have the most affordable houses on sale.
Other than that, there are a few things to consider and implement in order to get your first house. Take a look…
#1. Ask relevant questions
Before buying a home, you have to ask yourself important questions and be honest with yourself.
Do you really need a house of your own right now?
Can you afford it?
How long can your finances take paying a mortgage?
What other priorities have you got that requires money?
How long are you going to be living in your new house?
All these questions and more need answers to before venturing into the housing market.
#2. Shop for a suitable mortgage
If you’ve found that you cannot buy a house outright or you’re struggling with placing a down payment, probably a mortgage is an option for you.
But don’t get way in over your head. It’s not an avenue to get an outrageous mortgage that will take sweat and tears to repay. Your best option is to hire a mortgage broker to see how much of a mortgage you could get.
If that is out of your budget, you could always go shopping for the most suitable or the best mortgage or apply for a preapproved mortgage which normally lasts for 90 days and sets a limit on the mortgage amount and interest rates. Remember that mortgage rates differ so it’s vital that you find the best rate and terms.
#3. Consider the government’s Home Buyers’ Plan for first-time buyers
This plan may seem favorable for you if other options seem grey. It permits you to take up to $25,000 of your RRSP towards purchasing your house. It is also tax-free and gives you up to 15 years to pay back.
#4. Find a realtor
To kick off the process of actually finding a home, hiring a realtor will do the trick. Be sure to feel comfortable with the agent. Let him know of the kind of your house you’re looking for, the sort of neighborhood and more. Talk about prices and negotiate deals. Your realtor should be able to give you the best advice possible.
#5. Buy an affordable home
Buying a home means considering everything that will go into the home. There is no sense in living in a home that you will have to pay the next few years paying up. Instead of enjoying the home, you will be worried about how to pay up the mortgage for the next month. Therefore, be wise and pick a house that has a reasonable price. Ask yourself what kind of house you’re looking for and other things that have to do with the neighborhood or privacy.
However If mortgage insurance is available, get one. But remember, the house has to be affordable.
#6. Stay objective
It is quite easy to get emotional while on your path to buying a house. If you see a house you like but is way out of your price or budget, be ready to walk away. No need to buy a house that you cannot afford just because you like it. Remain objective. There will surely be another house that you will like and especially one you can afford.
#7. Budget extra expenses
While thinking of buying a home, you have to keep in mind that other expenses will later come in play. Things such as movement costs, appliances and utility should be kept in mind. Include those fees in your budget.
#8. Avoid unnecessary costs
This is probably similar to the previous one. But this one has to do with paying up for costs on time and spending money on necessities only.
It is preferable to budget an inspector fee. Get someone to check out the whole house to avoid having to spend more cash should any problems develop.
Also, quit deferring payments on certain home necessities such as furniture. It is best to get these paid and over with.