Alt.tag: first-time homebuyers in Canada
Getting close to your first home is one of the most exciting life events ever. Apart from growing a family, securing your housing is one of the moments you’ve been waiting for your whole life. However, starting the homeownership journey is not that simple. There are steps to take to make sure you pick the right home, go through the buying process safely and move in without any issues. For those who don’t have a lot of experience with all that – this is the right guide. Here’s a step-by-step guide for first-time homebuyers in Canada. Hope you find it useful to get a dream home soon!
Before anything else…
..make sure you’re doing the right thing first. Homeownership is not for everyone, so you must be ready for such a big step. Owning a house brings a lot of benefits, such as financial stability, feeling good about your accomplishment, security in your own home, and more. At the same time, it comes with several responsibilities. You need to make sure you’re financially ready to make a purchase, but also maintain the property for years to come. It also requires you to settle down in one place – which can be an advantage for many.
On the other hand, renting offers flexibility and less maintenance responsibilities. You have someone else to handle all the repairs, so you have more time to work, travel or have a hobby. So before you make any serious decisions, be sure to evaluate your financial situation, but also your long-term plans regarding family and work. This will help you get rid of any doubt that you might feel about getting a new home for yourself and your loved ones.
Getting pre-approved is the very first step
Every buying process should begin with getting pre-approved for a mortgage, in case you’re getting a loan for your new home. This will help you prepare for the house-hunting process. Depending on your credit score and your salary, you’ll get more information on the size of the loan you can get. This will narrow your options and make it easier to look for homes that are within your budget.
Remember: another important factor in getting pre-approved is down payment. Make sure you start saving for a down payment long before you start browsing for homes. The reason is that you need to have a minimum 5 percent down payment for properties in Canada that are valued under $500,000. For more expensive properties, this rate is even higher. This can get to a significant amount of money, so don’t wait until you see a perfect home to realize you still don’t have enough money to start the process.
Work with an experienced pro
Real estate agents are of great help when you’re a first-time homebuyer in Canada. If you hire a local expert, you can expect a much better insight into the local market and a faster connection to the most suitable home. That’s why it’s important to hire an agent that has a lot of experience in the area you’re interested in. Local agents know more about houses in the area, their value, and common issues you should stay away from.
Another task you should hire a local professional for is moving into your new home. Find local Canadian moving professionals that fit your needs so you can be ready once your new home’s keys are in your hands. It will be easier to settle in with expert’ help, as you won’t need to worry about the safety and efficiency of the transport of your belongings. Get recommendations and do the necessary research to find the best team to handle your relocation.
Know what you’re looking for
It’s important to find a balance between your dream home features and what’s on the market. That’s why you should make two lists in this house-hunting process:
- List of top priorities you’re looking for in a home – list all the desirable features and deal-breakers;
- List of common home features of homes in your favorite city or neighborhood. Do some research to find out common home sizes, prices, and features so you can know what to expect.
Comparing these two lists will help you narrow your options and save you the time you’ll need to find the most suitable home.
Making an offer
Selecting a home and making an offer is often challenging due to the competition. If you’re looking for a home in a hot area, you can expect bidding wars. So, it’s important not to get too attached to a property before your offer is officially accepted. Now it’s time to get a home inspection and make sure everything is the way it looks. The inspection can reveal potential renovations, which surely include additional costs. Be sure to make detailed calculations about all the repairs that are needed so you don’t get into financial trouble later on.
Remember: the final step of buying a home also includes closing costs. Many first-time homebuyers are not aware of all of the expenses that go into this process, so they are often unpleasantly surprised by them. Closing costs include land transfer tax and lawyer’s fees, and sometimes even a municipal tax. Make sure you do research on the specifics of these costs, as well as incentives, that may vary in different Canada provinces. Professional Movers Canada always advises their clients to create a budget for getting a house as well as moving in, as these expenses can pile up and present a significant financial burden for them. Plan all the costs and give yourself time to save up.
It’s time for a new life chapter!
After you go through all the steps of the purchase process, it’s finally time to enjoy your new home. First-time homebuyers in Canada should know that buying a home can get stressful – but it’s utterly rewarding in the end. You’re now finally in your own home, ready to make some amazing memories with your loved ones.
meta: Everything to know if you’re one of the first-time homebuyers in Canada – read our step-by-step guide to prepare for the process.