February 18 2021

First-time Home Buyer Guide: 

first time homebuyer

Are you a first-time home buyer? Purchasing a home is one of the largest commitments you’ll ever have to make. It is important you do your research and have a good understanding of the process so that you are prepared to make an informed decision. 

Here are some things to consider before purchasing a home for the first-time:

 1. Advantages that come with of owning a home: 

– Instead of paying rent each month, you will be building up your equity as you pay down your mortgage. 

– Owning a home is an investment, if you sell your home when the market is higher than when you purchased, you can make financial gains on the resale price.

– If your home has a secondary suite you have the opportunity to make extra income by renting it out to a tenant.

– When you own your own home, you have freedom: you can renovate it, modify it or sell it as you wish.

2. Budget: 

Once you have decided to make the leap to homeownership, it is important that you have a thorough understanding of all the expenses associated with buying and to figure out how much you can afford to spend. 

Here is a breakdown of what to consider while budgeting:

– How much you make per month minus how much you spend per month. This will determine how much you have available after your expenses. 

– According to CMHC your monthly housing costs should be no more than 32% of your average gross (before-tax) monthly income and your monthly total debt load should be no more than 40% of your average gross (before-tax) monthly income

Know all the costs:

– Down-payment 

– Monthly mortgage payments

– Condo fees

– Property taxes

– Utility bills

– Land registration fee 

– Moving expenses

– Purchasing fees (inspection, appraisal, or legal fees)

– Insurance

– GST/HST/QST on the purchase price (for newly built homes) 

3. Get Pre-Approved: 

Once you have determined what you can afford, it is important to get pre-approved before you start looking at any homes. A pre-approval does not mean you will be guaranteed that mortgage, but it is a good way to narrow down your home search and to ensure that you only look at homes within your budget. 

There are many options when it comes to selecting a mortgage. You will have to meet with a mortgage broker to determine what is the best option for you. 

4. Purchasing Incentives:

Buying your first home should be an exciting time! Canada Mortgage and Housing Corporation (CMHC) offers many great resources for first time home buyers and can answer many of your questions. 

Visit here to learn more about the different house types available in McConachie. Follow us on Facebook page to stay up to date with our community. Thanks for reading and stay safe!