fall'ing into homeownership
 September 28 2015     Posted by

Thinking of fall’ing into homeownership? Let us help determine how much home you can afford and pre-approve you before you start shopping. 

If you are a first-time homebuyer, professional mortgage advice can get you off on the right foot in your home buying journey. We specialize in the kind of education that can help get new homebuyers off to a great start!

You want to take advantage of today’s low rate environment but it can be overwhelming to sort through all of the available options. We can help get you the right combination of mortgage features, privileges and rate that is best matched to your needs. The right mortgage goes beyond rate – it’s important to also consider term, prepayment options, refinancing penalties, restrictions, and fees.

Determine what you can afford. Before you start shopping for a home, let us help you determine how much home you can comfortably afford. Having a realistic budget to start will bring you confidence knowing that you are not overextending yourself. Remember that home ownership involves costs beyond the monthly mortgage payment such at utility bills, insurance, taxes, home upkeep.

Be sure to talk to us about getting pre-approved, so you’ll get your interest rate guaranteed for a set period, typically 90 to 120 days.

Downpayment options.Downpayment is one of your most important considerations before you look to purchase your new home. If you’re in the “saving up” stage of preparing for home ownership, this is a great time to meet with us so we can discuss your downpayment options. In most cases you want to save five percent of the purchase price. There are a few options to consider for first-time homebuyers who may have smaller amounts to start:

1. The Home Buyers’ Plan (HBP) - first-time homebuyers can withdraw individually $25,000 or $50,000 with a spouse tax-free from their RRSPs, provided they adhere to the repayment plan.
2. Gifted downpayment from a parent or blood relative.
3. Start off small – the dream house may be priced too high, so a starter home might be the right option. A smaller home or maybe a house just outside of the expensive area will help get a foot in the door.

Build a team of professionals. We’d be happy to help you build a strong away team so that all aspects of your home buying experience are efficient and professional. Your team will include a realtor, lawyer, and a home inspector.

Plan for closing costs.There are additional costs that come with buying a home so you’ll need to have some extra funds set aside to cover these costs. Generally, you can expect to pay between 1.5% and 4% of the home’s selling price in total closing costs. We can outline all of your closing costs so you won’t be caught by surprise.

Don't be tempted to rush into anything just becuase the holiday season approaches so quckly. It's best to make sure you find the right house and stick within your budget. If you are thinking of jumping into homeownership this fall, let's have a converstation!