24 Dec Top Home Buying Tips for Canadians
The decision to purchase a new home is one that most make only after careful consideration; a process which should involve asking yourself the following questions:
- Can I afford to buy a new home?
- Is my credit score good enough to secure a loan?
- Do I have the funds for home ownership once I’ve purchased one?
- Would renting be a more sensible choice right now?
Once you’ve given everything due thought, and have concluded that yes, you are ready to purchase your new home, you’ll need to begin taking measures to fulfil the following steps:
Putting money aside for a down payment:
With minimum requirements for down payments in Canada typically at 5%, the average home buyer will need to have around $25,000 available to secure a down payment on a property. Setting a clear financial goal can help you achieve this.
Establishing and maintaining solid credit:
Lower interest rates, monthly payments and lower overall home buying costs are usually achievable with solid credit. If you need help improving your credit report, or simply want additional advice about credit in general, talk to a credit professional as soon as possible.
Finding a suitable mortgage broker:
When you choose a reputable, experienced mortgage broker to help you purchase a property, the whole process becomes easier and a lot less stressful. Undoubtedly worth their fee, a broker can help you gain access to the best rates and give you up-to-date, qualified advice throughout the whole process.
Securing pre-approval for a loan:
When you’re making a bid on a property, having pre-approval for a home loan can give you a significant advantage over others. In order to secure pre-approval for a loan, you’ll need to be able to show your chosen lender some proof of income, employment and assets, along with good credit. Your broker will of course help you with this.
Finding your new home:
Locating your new home can sometimes take weeks or even months, and you’ll have a lot of factors to consider before you decide to make a bid, but this process shouldn’t be rushed. Once you’ve found the right property, you can begin talking with more intent to your broker, who will jump into action to find you the best deal.
Budget planning for all other expenses:
A mortgage is only one expense associated with buying a home, there may me many others and not all of them are foreseeable. Aside from insurance and property taxes, you may have a series of maintenance and/or repair costs to consider; devising a detailed budget can help ensure that any unexpected or unaccounted expenses, don’t cripple you financially.
Throughout the home buying process, seek help from wherever you can find it, professional or otherwise, and don’t be afraid to ask around for advice and guidance that could help you avoid making any costly home buying errors.