Good afternoon everyone, Happy Friday. I am your host Haruindar Grewal.
Today I am going to talk about Home-Buying Checklist for Newcomers.
Homeownership can be very exciting, but it isn’t always the best thing for everyone. Before you decide to buy a home, make sure you carefully consider the costs.
It includes your monthly mortgage payment, utilities , mamaintance of the house.
Here are 5 steps for first time home buyer.
Very first is Down payment
To buy a home, you need a down payment. You also need money to pay for the upfront costs. There are few ways you can get down payment your first property.
Saving for your home
Most employers deposit your pay directly into your chequing or savings account. Increase your chances of reaching your savings goals by setting up automatic transfers to a savings account each pay cheque.
Saving with a Tax-Free Savings Account (TFSA)
A TFSA is an account that lets you save or invest your money tax-free. You won’t pay tax on money you withdraw from your TFSA. You can also use your TFSA to help you buy a home.
The Home Buyers’ Plan (HBP)
If you’re a first-time homebuyer, the HBP allows you to withdraw up to $35,000 from your RRSPs tax-free to put toward buying your first home.
VTB:
Vander take back its when seller agree to provide 20% seller’s loan which will help with down payment.\
2. Get a Pre-approval! Pre-approval! Pre-approval!
Once you’ve saved up enough for your target down payment amount, the first thing you should do is get a mortgage pre-approval but Most Canadians think the first step in the home-buying process is to contact a realtor and start looking at homes. This. is. incorrect.
Call your mortgage broker or your bank’s mortgage specialist first before calling your realtor.
Shop around for great Mortgage rates:
A mortgage is likely the biggest loan you get in your lifetime. It’s important that you understand the process.
Check your credit report before you apply for a mortgage
A potential lender considers your credit history before they decide whether or not to approve your mortgage application.
Lenders may have different interest rates and conditions for similar mortgages. Talk to several lenders to find the best mortgage for your needs.
You can get a mortgage from:
Mortgage lenders like banks and credit unions.
Mortgage brokers : They don’t lend money directly to you. Mortgage brokers arrange transactions by finding a lender for you.
Find a home
Finally, the fun part – house hunting! With your mortgage pre-approval in hand, your maximum purchase price in mind, and a substantial down payment, you’re ready to contact a real estate agent and begin your house hunt. Here are our top tips:
• Find a real estate agent that specializes in the type of house or neighbourhood you prefer (family referrals are a great place to start)
• Avoid representing yourself if you are a first-time homebuyer. It’s better to rely on the expertise of an experienced agent
• Make a list of “must-have” and “nice-to-have” features for your future house. It’s important to know where you can be flexible
• Research the market in your ideal neighbourhood to make sure home prices and your maximum purchase price are in sync
• Be prepared to move quickly in a competitive market
You can use a site like Zoocasa to do a lot of this research without having to leave the house.
Make an offer and seal the deal
When you find the house you want, things will move fast – but don’t panic! First, you’ll submit an offer to purchase. Once your offer is accepted, you’ll pay a deposit to the buyer , arrange to finalize your mortgage financing through your mortgage broker, and arrange for a home inspection.
The offer might be amended based on the findings of the home inspection. Still, eventually, you’ll secure your financing and, with the help of a real estate lawyer, pay your down payment and transfer title to the home into your name. The entire pr
