Owning a home to call your own is on the top of Canadians priority’s list. There are however a lot of factors to consider when buying your first property because it is one of the biggest financial decisions you will ever make.

Like any decision that involves a large chunk of money there are good and bad decisions you can make, that’s why you need to always do your research so you can feel comfortable and confident when making that big decision.

Here are some tips for setting your foot in the market for the very first time:

Choosing a home

-Avoid making an emotional decision as best you can, stick to logistics and math.
-Research the neighborhood well. Spend time there during the day and at night to make sure it is the kind of living you are looking for. Spend time at the local coffee shops, shopping centres and restaurants to be sure it is the neighborhood you want to start off in when purchasing a home.
-Have a professional check the property to make sure there are no issues and it is structurally sound.

-Pay close attention to additional costs when buying a home. Such as legal fees, appraisals, inspection fees and property insurance. Also make sure that you are including in your budge strata fees, property taxes etc.

-Consider starting small so you do not put yourself in a bad situation where you are “house poor”. Strata fees and property taxes are also always higher in more expensive properties. Start small then you can build your equity and after living there for a few years you can upgrade with the equity in your home

Mortgages and Interest

-Possibly one of the most import things when consider your mortgage and finance when buying a home is to save as much as you possibly can. If you make the decision to buy a house well before you actually are going to make the move then do whatever you can to save everything. The more you save the less you are paying in interest and the cheaper your monthly payments will be. You need to have a minimum of 5% down payment but if you have time and can save and aim for 20% you also save in insurance premiums.

-Use a mortgage broker so they can shop around for the best interest rate for you. Going to a bank they only have one option for you, whereas using a mortgage broker they do the shopping for you to get you the best rate and product for you.

-Pay attention to the fine print because not all mortgages are the same and you need to make sure the mortgage you are getting is the best product for you. Talk to a mortgage broker to get a professionals advice-their services are free.

-Play around with mortgage calculators. Don’t assume that a 25 year amortization is the best term for you just because your payments are lower. The longer the amortization is, the more you are paying in interest. However, you also need your payments low enough where you can survive.

-Stick to what you can afford. Mortgage repayments should not account for any more than 40 per cent of your monthly income, preferably less. Anything more is considered “mortgage stress” because it leaves your with little, if any, leftover once other home ownership cost and living expenses are accounted for.

Please call me if you have any questions. I am always available to help!
Thank you

Jessie Beausoleil
Dominion Lending Centres
604-836-9268
jessieb@dominionlending.ca