Home Buying Checklist: Get in the Know
The process of home buying is an incredibly important life goal for many Canadians. While the method is straightforward, in a hot economy it becomes harder to set prices and win bids on investments. More than simply applying for a mortgage, homeownership carries with it many financial responsibilities. In order to equip you with confidence in this big decision, here is what includes for preparation.
The reality is, you need to clean up your finances before the home search begins. A down payment is only one piece of the PIE, your employment history, income and credit all play a significant role.
Occupational data: Apart from employment location through which the lenders can easily track you down, a stable work history indicates that you are less of an risk. Longevity at a job that also helps to place credibility on your side when you are seeking financing for something such as home mortgage
Down Payment: A minimum of 5% down is required for the purchase price in Canada Mortgage default insurance is required if you are putting less than 20% down and can often help you achieve a lower interest rate.
RRSP Home Buyers’ Plan: This program allows you to withdraw up to $35,000 from your RRSP without paying taxes to fund your down payment, with repayment spread over 15 years.
First-Time Home Buyer Incentive: This program offers 5-10% of your home’s down payment in exchange for future equity in the property, which you’ll repay when you sell.
Land Transfer Tax Rebate & Housing Rebates: These rebates can offset some costs related to land transfer taxes or new construction/renovations.
An important thing is to stick to your budget. You do not want any surprises, so you should get preapproved for a loan to know your debt-to-income requirements or options and what price range of houses that includes. Also, keeping tabs on and raising your credit score can mean the difference between prime (good) & subprime (bad rates).
When you are researching mortgages, shop around for the best rates and different terms / amortization periods. And do not fixate solely on the lowest rate; ultimately, your mortgage should reflect what you value for a long time to come.
Work with a professional Realtor® and real estate lawyer if you are ready to make an offer, to walk you through the negotiation process and paperwork. This might also be a time to get an inspection on the home as well, so you can start preparing for any potential problems that may arise between now and then.
We help you secure the most competitive mortgage by working with over 50 trusted lending partners.
Provide home sellers with confidence through a Verified Approval Letter, ensuring smoother negotiations.
We prioritize your privacy—no spam or selling your information. Your data remains secure at all times.
Enjoy expert guidance from our mortgage professionals, completely free of charge.
Ready to get started?
Services
Please provide your contact details