Advice for First-Time Homebuyers
This is an exciting time, you’re looking at listings and the prospect of being a homeowner. Not only is this a big step but it’s also an opportunity to make a major investment. Being a new homeowner comes with a lot of responsibilities, this blog is here to help you navigate this new world of being a first-time homeowner.
RE/MAX Canada recently posted an article with some fantastic advice for first-time homebuyers. The article will review some of the government programs that are available to you that help to make this whole process easier and more affordable.
When we get to the end of this blog we’ll give you the contact information about The VanDinther Team, so you can start your journey of being a first-time homeowner. Now, let’s learn about the importance of budgets and mortgages.
Budgets and Mortgages
The first step in the process of buying a home is determining what your budget is going to be. Determining your budget will help you know what listings you should be looking at, what price points, etc. This will be the very first step you take in your homeownership journey.
There are some things you’ll want to consider when planning your budget, such as your financial health. What do your savings look like? Will you have enough for a downpayment? Asking yourself these questions are very important when starting out on this budget planning process. There are also other financial obligations you’ll have to consider as well such as legal fees, land transfer tax, moving expenses and more. That’s why being prepared and organized is so important when you’re planning on buying your first home.
The next aspect of planning to become a new homeowner is applying for a mortgage. RE/MAX Canada explains the importance of gathering all of the necessary information that will be required. You’ll be required to show your proof of income, employment and your credit history. There are mortgage brokers that are available to assist you in this process, as it can be overwhelming at times.
The mortgage broker will also help you shop around for the best deal. There are resources available to help if you don’t have a mortgage broker such as a mortgage calculator and other websites that can help. Finally, when you’re shopping for a mortgage you will also want to consider the payment schedules, term rates, fixed or variable mortgages and more. If you need assistance with the financial side of this process there are government programs available and you should consider them as well.
Government Incentives to Consider
For some first-time homebuyers it’s good to consider what government incentives and programs are available. These incentives and programs are great tools for you to use and they can help you save money, including tax incentives. Listed below are three different programs that are available to help homeownership become more possible for those who otherwise might not be able to.
- First-Time Home Buyer Incentive Program: This program “provides a shared equity mortgage with the Government of Canada,” and helps to reduce mortgage payments and also increases your borrowing abilities. The incentive offers a five percent discount on the purchase price of a home and ten percent on a new build.
- Home Buyers’ Plan (HBP): With this plan you’ll be able to withdraw “$35,000 from your Registered Retirement Savings Plan (RRSP) tax-free to put towards your down payment.” This is a great program for new homebuyers who might not have enough for a down payment.
- First Home Savings Account (FHSA): This program allows you to save for your down payment but also earn tax free interest. The contributions to this program are tax-deductible and the interest you earn on this account will be tax free. The FHSA will allow you to save for your down payment quickly.
“As a first-time homebuyer in Canada, you may be eligible for various government programs to help you achieve your homeownership goals. These programs offer financial assistance and tax incentives that can make homeownership more accessible and affordable.” – RE/MAX Canada
Making an Offer
The time has come for you to make an offer on your very first home and the pressure is on. There’s a lot to consider once again and this time it has to do with the purchasing cost, the closing date and the sale conditions.
As a first-time buyer you’ll need to negotiate with the seller on the terms of the sale. It’s highly recommended that you go with a professional real estate agent to make this process easier. It’s also important to have a home inspection done. Having professional home inspections are recommended and should be done before you close the sale and sign the papers.
Once you’ve reached a deal with the seller you can start the process of buying your home. You’ll now be required to to sign a lot of papers and you may need to transfer funds and have the property registered.
Making sure you have a reliable and experienced real estate agent is so important. They’re able to walk you through this process and help you find the home of your dreams. The VanDinther Team works hard to make these dreams possible with all of their clients, and can offer some great advice for first-time homebuyers.
Contact The VanDinther Team
Helping you make the right moves is what the VanDinther Team does best. This is an exciting process, if you have any questions please feel free to reach out to the team today. You can contact the VanDinther Team by phone at 905-330-2002 or by email at firstname.lastname@example.org.
Have you been wondering what your home might be worth? Try our “What’s My Home Worth” calculator and find out. The VanDinther Team is ready and looking forward to helping you make the right moves.