First Time Home Buyer's Guide
Start your house-hunting journey with a mortgage pre-approval...
Before you get your heart set on a house, let's figure out how much you can afford. The best way to do that is to get a mortgage pre-approval. While getting pre-approved is not required, we highly recommend it as it will make your home buying process much easier. Plus, it’s free! We can help you with that.
The advantages of a mortgage pre-approval are:
- Peace of mind in knowing how much you can afford.
- Ability to negotiate a price that fits within your budget.
- More appealing to sellers.
- Faster closing period.
How to get pre-approved
To get pre-approved, we can get one of our best mortgage brokers (who are available 7 days a week to fit your schedule), they will evaluate how much you can afford.
Here’s what you’ll need:
- Proof of employment and income
- A list of current assets (savings and property of value) and liabilities (outstanding debts and payments)
- Confirmation of your down payment
Benefits of Owning a Home.
Pride of home ownership is the number one reason why peopel desire their own home. There is no landlord looking over your shoulder. You are able to make home improvements that will be to your benefit. Home ownership gives you and your family a sense of stability and security and its an investment for your future.
In Canada, especially in the last few years, homes have appreciated considerably and in doing so have added substantially to owners net worth. Unlike stocks and bonds, you get to live in your real estate investment. Also, in Canada your principal residence is exempt from capital gains taxes.
Mortgage Reduction Builds Equity
Each month, part of your monthly payment is applied to the principal balance of your mortgage, which builds your equity. You can borrow against a home's equity for a variety of reasons such as home improvement, sending your kids to university or college, or starting a new business. Why pay-off your landlord’s property when you can own your own?
Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they have can use, improve and sell. Their home is a safe haven for investment.
Are You Ready to Buy a Home?
First – You'll need a down payment? You'll need at least 5% for the down payment and at least 2% for closing costs.
You can use RRSP's for First Time Home Buyers...
First time homebuyers may want to take advantage of RRSP's. The federal government’s Home Buyers’ Plan. Under this plan, you may use up to $25,000 of your RRSP towards the purchase of a home. The money is tax-free as long as you pay it back in the next 15 years.