If you’re in the market to buy a home for the first time and have looked into what you have to do in order to purchase your first property, you may find the information out there overwhelming. Buying a home is a huge undertaking that requires careful planning and preparation, but you don’t have to go at it alone.
Below is some great information to help you better understand why you may want to purchase a home, the home buying process, and some factors you should consider. When you need professional guidance through the process of buying a home for the first time, contact our team. We work with buyers and sellers of all experience levels, and would love the chance to help you make the dream of home ownership come true.
Most first-time buyers are transitioning from renting a home to owning one. If you are looking at owning a home after previously renting one, here are some pros and cons to keep in mind as you make your decision:
Renting and buying both have pros and cons to consider:
These are just some pros and cons you’ll want to consider when deciding whether or not buying is right for you. For professional guidance on whether it’s the right time to look for your first home, contact our team today.
Purchasing your first home is complex, with many different steps - here is a quick overview of the stages in buying your first home.
1. Work Out Your Finances: Determine if you have enough money for not just the monthly mortgage payments, but everything else involved. This includes:
It’s important to only move forward if you’re confident that you can afford these and other incidental costs, and that your situation is stable enough to afford the regular mortgage payments and other costs that go along with home ownership.
2. Secure Your Financing: Meet with a mortgage professional to discuss your options and apply for financing. Getting pre-approved for a certain mortgage amount is important in giving you buying power once you go to look for your new home.
3. Identify What You Need and Want in a Home: Before looking at properties, know what you need in your next home along with what you would like to have. Consider factors like size, location, access to amenities, and home features. When you’re ready to look, our team can go over your needs, wants, and budget to help narrow down your home search.
4. Look at Properties: WIth your budget and requirements in mind, start looking at houses available in the areas you want. When you work with us, we’ll help you find the right properties based on your needs and walk you through what to look for when you go to see them in person.
5. Make an Offer: Once you’ve found a property that fits your needs, put in an offer. We’re here to walk you through all of the details of your offer so you know exactly what it includes and the conditions that should be set on it.
6. Get a Mortgage: Once you have an offer accepted, go back to your mortgage professional and provide them with the details of the property.
7. Close: On closing day, you take legal possession of the home and provide any remaining payments for the lawyer to distribute. You then receive the keys and the deed goes in your name.
There is more to each of these steps, and each one can require careful planning and guidance. When you work with our team, we’ll work to make each step as clear and stress-free as possible for you.
When buying your first home, there are several great government programs and incentives that can help make paying for it easier.
The first-time home buyer incentive program gives you a lower monthly mortgage payment. With this program, the federal government provides an extra 5% or 10% of the down payment of your home, and then you are responsible for paying back 5% or 10% of the property’s current market value at the time of repayment. Repayment happens either after 25 years or when the home is sold, whichever comes first.
With this plan, you can withdraw up to $35,000 from your RRSPs ($up to $70,000 for a couple) to make a down payment on your first home. There is no penalty and no taxation on this as long as it’s repaid to your RRSP within fifteen years.
With this tax credit, you can claim up to $5,000 for the purchase of a qualifying home as long as you (or your spouse or common-law partner) haven’t owned a home in the past four years.
If you are building a brand new home, or are significantly renovating an existing home, you could qualify for a rebate of part of the GST or HST that you paid on the purchase price of it.
If you’re a first-time home buyer and are looking for great advice and help through the home buying process, contact our team today. We’re here to answer your questions and help make your first time purchasing your own home a success.