Not only is buying your first home an amazing accomplishment that comes with a great sense of freedom and security, but it's also a great step into the real estate market and can provide you equity and a leg-up towards future expansion.
As amazing as it is to be a first-time home buyer, it's important to remember that this is likely the largest financial decision you will ever make. There are a few questions you can ask yourself to make sure you’re ready to take this incredible leap!
1. Do you have stable employment or income?
2. Do you have a good credit score?
3. Do you have a downpayment?
If you've decided to take the plunge, you need to start by figuring out what you can afford. A great place to start is my app - My Mortgage Toolbox. This tool can help give you an idea of what you can afford, so you can start preparing your budget and down payment!
The minimum down payment on a mortgage in Canada is 5% for purchases up to $500,000 (that's $5000 for every $100,000 you want to borrow) & 10% for the remaining amount over $500,000.
Putting down more is beneficial whenever possible as it will lower the amount being borrowed. But, if you can only afford the minimum that is perfectly fine! Just remember, if you are putting down less than 20% to purchase your home, default insurance will be mandatory to protect the investment.
Once you have your down payment, you will want to go through the pre-qualification and pre-approval processes for mortgage financing. Now this process is NOT a mortgage approval, but it will give you a head start and allows you to lock you in at a particular rate and term (for up to 120 days) while you shop! While temptation will be to start looking at the very top of your pre-determined budget, it is important to remember that there will be fees, such as mandatory closing costs, and a little wiggle room is always a good idea.
As your dedicated mortgage professional, I can help you through the mortgage process. From pre-qualification to pre-approval to secured financing, I would be happy to lend my expert advice to your situation. I can also help you track down the best mortgage product, and rates, for you.
In addition, I have many contacts in the industry and would love to connect you with a realtor who will be your advocate while showing you homes and ensure that you do not encounter any hidden roadblocks.
When you are ready to take the next steps, feel free to contact me. I would be honoured to help you get started on your home ownership journey!
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