Buying a house is one of the biggest decisions you will ever make. To ensure you make the right choice, we have listed some of our most useful tips to help you through this process!
How Much Can You Afford
It is important to know exactly how much you can afford in monthly mortgage payments. Knowing what you can afford will help you set a realistic price range for the home you want to purchase. You must also consider additional fees such as:
- Closing costs (home inspection, legal fees and land transfer tax)
- Property taxes
- Property insurance
- Mortgage insurance (if needed)
- Heating, hydro, water and other services
- Home maintenance and repairs
Down Payment
You will need a down payment of at least 5% to purchase a home. When you are ready, ensuring that you have the appropriate amount of money available to make this down payment is essential in securing the home of your dreams!
Tax Credit
First Time Home Buyer’s Tax Credit (FTHBTC) is a government program geared towards buyers like you. The objective of this program is to help reduce costs associated with purchasing a home. Under the FTHBTC, first time home buyers are eligible for a 15% income tax credit on a maximum of $5,000 that has been spent on home purchase costs such as legal fees and land transfers. You are considered a FTHB if neither you or your spouse/common-law partner have owned and lived in another home within the year of purchase or within any of the four previous years.
Know the Market
Understanding the market is very important while searching for your first home. With a real estate agent by your side, you will be able to learn about the market much closer which will ultimately give you an edge during your home search. Moreover, with your agent you will also learn about how the market is currently priced, what homes are going for in each market you are interested in, what homes you can realistically afford, why the market changes so rapidly, what factors go into pricing a home, and how mortgage rates can affect the market.
While buying your first home is one of the biggest decisions you will ever make, this process can also be very enjoyable! Ensuring that you are equipped with the right knowledge, tools, and support is vital in getting the dream home you have always wanted!
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