Money Talk for First-Time Home Buying in Canada

In the market for your first home? Moving out of your parent’s basement? Or, maybe you are looking to get your toes wet in the real estate market – whatever, your real estate needs, there are a few things you should keep in mind to ensure a successful home buying experience.

Save for a down payment and then some…

Before one buys a home, it’s essential to ensure one has the finances to do so. Why? When it comes to buying a home, one of the first things to get the process rolling is having the down payment.  A down payment is the amount of bulk money that one puts down towards the purchase of the home. Typically, the down payment is anywhere between 5% to 20%. The higher the down payment, the better the interest rate on the house.

For example, looking to buy a home that is worth $500,000, but only has $25,000 in savings, this would mainly be the bare minimum of 5%. While the house that is worth half-a-million may be your dream home, it may not be the best for your budget. Determining how much to put down and whether it is worth all your savings is to speak with a mortgage broker. They would be able to provide the best advice on how much to spend or what is well within your budget.

Closing costs, land transfer, etc.,

Having the down payment is one thing; however, other costs are not always apparent until the very end or near too. For example, closing costs, lawyer fees and the land transfer. Doesn’t matter who it is, where the house is, these are fees that can add to the overall costs but also to what a person should have when it comes to buying a home. Land transfer tax varies from province to province; however, if this is your first home, some regions do offer a tax-break to recoup some of the costs.

When it comes to buying a home, the rule of thumb that is best kept in mind when ensuring one has enough money is to save anywhere up to 2% of the total home value. In the case of the half-a-million-dollar home, having an extra $10,000 set aside on top of the down payment can be a helpful safety net.

Buy and Shop Wisely

Starting the search for a home can be stressful and overwhelming. It can be even more stressful if you aren’t financially prepared or aren’t sure where you stand financially. To make the process a smooth and positive experience, consider meeting with mortgage brokers, a financial planner but also checking your credit score. Doing all these means, you are mitigating the potential of not being qualified or being able to afford that dream home.

Whether you’re looking to buy or sell in the Kamloops area, for a greater probability of success you need a dedicated professional. I can guide you through the process and be counted on to protect your investment!

Categorised in: Buyers, Kamloops, Real Estate

This post was written by kamloopshomesearchcom