PURCHASES

 If you are a first-time homebuyer, getting professional mortgage advice is the best place to start. I specialize in the kind of education that can help get you off to a great start! There are many things to think about when buying your first home; here are some of your important considerations: 

 Before you start shopping for a home – and long before you consider putting an offer on one – I can help you determine how much home you can comfortably afford. With a pre-approved mortgage you’ll know the mortgage amount you qualify for and how much it will cost you to carry the mortgage. You’ll also get your interest rate guaranteed for a set period, typically 90 to 120 days. 

 Downpayment is one of your most important considerations before you look to purchase your new home. If you’re in the “saving up” stage of preparing for home ownership, this is a great time to meet to discuss your downpayment options. In most cases you want to save five percent of the purchase price. If the funds are coming from your savings, you will need to provide a 90-day history of bank statements. Increasingly, homebuyers are getting downpayment help gifted to them by a parent or other blood relative. You’ll need to provide a letter signed by your parent or relative outlining that you aren’t required to pay the money back. 

There are Government Incentives like the First-Time Home Buyers’ Incentive and the RRSP Home Buyer’s Plan that are can help you with your downpayment and make it overall more affordable for you. 

 It’s important to have a strong away team so that all aspects of your home buying experience are efficient and professional. Your team will include a realtor, lawyer, and a home inspector. I can refer you to top notch professionals. 

 There are additional costs that come with buying a home so you’ll need to have some extra funds set aside to cover these costs. Generally, you can expect to pay between 1.5% and 4% of the home’s selling price in total closing costs. Many homebuyers often reflect that they weren’t prepared for these costs and that’s why I make sure you fully understand all the costs associated with buying your first home. 

 Remember that home ownership involves costs beyond the monthly mortgage payment such at utility bills, insurance, taxes, home upkeep. Get a realistic picture of those annual costs, and imagine that sum on top of your mortgage payment. Put a budget together so you know what your situation will look like monthly. 

  There is a great and often overlooked option called a Purchase Plus Improvements  Mortgage that will help you complete your renovations before your move into you home and roll the costs into your mortgage, instead of racking up your line of credit or credit cards.