Purchasing your first home can be simultaneously exciting, overwhelming and stressful. The following are our list of top five tips to help prospective home buyers with purchasing their first home.
Tip # 1 – Prioritize your hunt
It is crucial to sit down and determine what you are looking for and prioritize your requirements. Are you interested in buying your first home in a specific geographic area, close to a certain school, or in the city’s core? Do you have your mind made up on minimum bedroom/bathroom requirements or the size of the home? Perhaps you know that you definitely want an attached garage, guest bedroom or the option for a basement tenant. It is very important to set your priorities to guide your agent and your search.
Tip #2 – Mortgage Pre-Approval
You know what you are looking for but make sure that it makes sense for you. Start your home hunt once you have obtained pre-approval for a mortgage. Your pre-approval will determine a price range which will help to narrow search parameters and guide affordability factors. There are various resources online that will calculate your mortgage payments based on down payment, amortization period, payment frequency, etc.
Tip #3 – Set a down payment budget and don’t forget any associated costs
Your down payment for your first home is an important decision. It should be
at least 5% of the purchase price, however, it is recommended to aim for a 20% down payment.
Remember that you can use up to $25,000 from an RRSP towards to purchase of your first home, non-taxable with 15 years to repay it.
It is a good idea to budget for the down payment and to also consider other related costs such as a home inspection, bank appraisal, land transfer tax, property and fire insurance, legal fees, etc.
Tip #4 – Be realistic (the head vs. heart dilemma)
A home purchase will likely be one of your biggest life purchases. It is both exciting and overwhelming. It is crucial to use both common sense and realistic expectations in these circumstances. It’s challenging but letting your emotions run wild can blur reality and could result in paying more for a home in the long run or spending more than you can actually afford. Use your heart to guide your wishes and your head to solidify decisions.
Tip #5 – Found your home? Now stop looking!
We are all guilty of this. You book a trip and then search for other trips or the going rate for air fare the next day. You purchase a new suit but then continue to look for better pricing. Once you have found your home and made a decision – do not look any more.
Once you have the keys to your home, look forward to all of the exciting things that come with it: furnishing, decorating, colour schemes, extra space or that large walk-in closet you have always dreamed of!
For over 50 years, Harvey Kalles Real Estate Ltd., Brokerage has been dedicated to offering professional service to all of our customers. We uphold a standard of excellence and service unparalleled in today’s ever-changing real estate industry. Our dedicated real estate sales team works together to form a powerful and committed sales force. Contact us today for help in finding your dream home, no matter the price range.
