First-Time Home Buyer
🕛 2.5 minute read
Buying your first home is an exciting and rewarding experience.
Whether you’re looking for a condo, townhouse, or a two-story family home, it’s a significant accomplishment and an entry into the real estate market.
Note: You are considered a first-time homebuyer if you did not occupy a home that you owned or one that your current spouse or common-law partner owned — in full or in part — anywhere in the world.
Are You Ready to Own a Home?
Before diving in, ask yourself some key questions:
- Are you financially stable and prepared for homeownership responsibilities?
- Do you understand the upfront and ongoing costs of owning a home?
Consider creating a pre- and post-budget to see how your purchase will affect your monthly cash flow.
Costs of Homeownership
Consider two major costs:
- Upfront Costs: Down payment, closing costs, and applicable taxes.
- Ongoing Costs: Mortgage payments, property taxes, insurance, utilities, and routine maintenance.
Securing Your Down Payment
The minimum down payment in Canada is 5%, but putting down more is advantageous if possible. You can use savings, tap into RRSPs (up to $35,000 per individual), or receive a gift from a family member.
An essential step for serious buyers that delves into your financial standing. It helps determine the type of home you can afford and manageable mortgage payments. This step requires specific documentation and a thorough financial assessment.
Protecting Your Pre-Approval
Maintain your financial stability and avoid major financial changes until after the transaction is complete.
Once your purchase offer has been accepted, we obtain a conditional approval from the lending institution. This approval is contingent on satisfying a number of lender conditions and arranging a property appraisal.
Your real estate lawyer handles the final steps, and you officially become a homeowner.
Congratulations on your new home!
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