Buying a home can have many advantages. Owning your own home instead of renting can provide security to you and your family. With your new home, you have the freedom to renovate as well as not have a landlord. Purchasing a home is a great investment for your future. Before you take the plunge and make a commitment, consider some advice for a first time home buyer.
As a long term real estate agent in the Greater Toronto Area,Karen Kubisoffers these three tips:
1. Consider your Finances. Before buying a home, make sure that other areas of your life, like a personal business or education, do not require financial savings as well or make sure that you can afford both. When you buy your first home, you should have enough saved to put down at least five per cent of the purchase price for your down payment. If you are able to save more than five per cent, then that is even better. Your job and home should be stable.
2. Meet with a Mortgage Broker. It is best to assess what you can afford. By meeting with a mortgage broker, they will be able to tell you how much you can afford based on your savings and your annual income. Shop around for the best rates, terms, and options before you make a decision. If you have not been pre-approved for a mortgage, try using an online mortgage calculator to see your rate and monthly payments. First time home buyers can also take advantage of the government’s Home Buyers Plan. With this, you can use up to $25,000 of an RRSP towards the purchase of your home. This is tax free as long as you pay it back within 15 years.
3. Ask Questions. While shopping for your first home, ask yourself as well as the other home owners and realtors questions. Consider what you will need – how many bedrooms, bathrooms, and garages? Do you want a condo or a single family home? Will you be having children? What type of neighbourhood do you want to live in? Consider everything from the size of the backyard and most importantly the location. Ask yourself if there are schools around or if your first home is close to your work. Consider all of these very important questions before making a final purchase.
As a first time home buyer, it can be a very overwhelming experience. When you are ready to settle on buying a home, get this advice and more from an experienced realtor