6 Helpful Tips for First-Time Home Buyers
Are you ready to make the investment to purchase your first house in Canada? After all, there is no better way to feel at home than to have a place of your own to call home. This new house may serve as a stepping stone to a larger abode in the future, or it may serve as the perfect nest for you to settle down in for the long haul.
Whatever your plans are, you must make sound and informed decisions because purchasing a home in Canada’s most populous metropolitan areas, such as the Greater Toronto Area (GTA) and surrounding cities, can be a difficult task for any young family. This is even more difficult for newcomers who may still be unfamiliar with the housing market and laws. Don’t forget that making the change from tenant to homeowner might be frightening, but it can also be exhilarating!
So, Let’s Get Started!
In life, purchasing a new house is a significant milestone, and it is crucial to make the most appropriate and practical options for your situation and circumstances. The most exciting part of searching for a new home is learning about all of the possibilities available.
The costs of new homes may be shocking when you are searching for one in the property market, and the process of qualifying for a Canadian mortgage can be hard and perplexing if you are new to the country. New home purchasers, on the other hand, are able to borrow money at rates that are competitive with the market once they have been approved.
Obtaining a Mortgage
Unless you have the financial means to pay for your new home outright, you will need financing in the form of a mortgage. Obtaining a pre-approval from a Canadian lender should be done before you even start looking for a home. You’ll want to find out exactly how much money you’ll have to spend before you start shopping, whether it’s from one of the main banks or an alternative lender.
Being creditworthy is crucial, but contrary to popular belief, having a good credit history in Canada is not required in order to secure a mortgage. However, having a good credit history will undoubtedly assist and may even provide you with access to a lower interest rate.
Down Payments
In order to qualify for financing, you’ll be required to make a down payment of at least 5% of the purchase price of your home. A typical percentage will range from 5 percent if you already have Canadian work and credit history to 35 percent if you have no previous employment or credit history in Canada.
Additional Expenses
There are also other charges to consider, such as Mortgage Loan Insurance, which will add around 1-3 percent to your mortgaged amount if your down payment is less than 20% of the home’s purchase price, and Property Taxes. Additionally, you should be aware of certain unforeseen expenses, such as legal fees and property transfer taxes. Despite the fact that your legal expenses will most likely be less, you should budget roughly $2,000. Land transfer taxes, on the other hand, will be more expensive. The fact that you will be liable for paying both the Provincial Land Transfer Tax and the extra Municipal Land Transfer Tax is vital to remember if you are purchasing a house in the Toronto area.
Feeling Overwhelmed?
As you can see, the procedure and complications for a first-time home buyer are significant, making the selection of a real estate agent critical. There is no shortage of real estate agents to pick from in the area where you are searching for your home. With so many options out there, you’ll want to be certain that the agent you pick is a suitable match for your needs.
How do you go about selecting a reputable real estate agent?
For starters, your agent should be able to demonstrate a working understanding of the locations and neighborhoods in which you are contemplating relocating or working. The importance of this knowledge cannot be overstated, especially if you are new to the region.
Your realtor should be well-versed in the advantages and disadvantages of various neighbourhoods, as well as in the schools, facilities, transportation, and demographics of the area in question. They should also be aware of the numerous laws, rules, construction styles, and procedures that are prevalent in the area where you choose to settle.
In addition, it’s critical to have the impression that your agent knows your requirements and is responsive when you have questions, because you’ll undoubtedly have several throughout the course of your transaction. It is a good idea to look at a realtor’s reviews to see what past clients have said. This is one way to help you see if the realtor would be a good match for you while searching for your first home.
