What You Need to Know BEFORE Buying your new Home


Tips and financial advice for buying a home

Buying a first home is one of the biggest decisions a person will make during their liftime.  It is a process that needs to be followed with careful planning and consideration, never rushed.

Find out everything you can on the subject of mortgages and home buying. For example, you should know that having a mortgage doesn't always cost less than renting because a home owner must take into account both recurring and one-time expenses, such as municipal and school taxes, maintenance costs, property transfer duties, and legal costs.

If you have done your homework and decided to become a home owner, the next step is to consult a representative at your financial institution. Once you are clear about your assets and liabilities, you will be able to estimate an aceptable debt level. This should not exceed 40% of yoru gross revenue, including all your existing debts.

DOWNPAYMENT
In the past it was possible to borrow for a down payment, with a credit card, for example. This is no longer possible. That means you need to have accumulated some savings before getting into this type of acquisition. If you have an RRSP, it is possible to use that for your down payment through the federal government's Home Buyers Plan (HBP).

HOME INSPECTION
You've found the house of your dreams, but be careful! Following through with a decisioon to buy solely based on your feelings isn't the best way to purchase a home. Have the house inspected before making an offer to buy, because if your offer is accepted you will be obligated to follow through with the transaction. Obviously it is to your advantage to work with a real estate agent who is subject ot real estate law. He or she works for you and will be able to answer any of your questions concerning your purchase.