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Buyers
THE BENEFITS OF HIRING A TEAM:
YOUR REALTOR® CAN HELP YOU:
Navigate the home-buying process and paperwork from start to finish, ensuring everything flows smoothly without any surprises.
Find the right home, in the neighborhood you want, at a price you can afford. Compare your property with similar properties that have sold over the past year. Get a feel for the neighborhood including schools, parks, and other amenities. Find out if you are eligible for government homeownership incentive programs. Assess mortgage products and different types of lenders to see what fits your needs. Negotiate purchase price and contract terms, such as date of possession, required repairs, and included furnishings or equipment. Direct you through complex contracts. Find qualified industry professionals, such as real estate lawyers, home appraisers, and home inspectors. Plan for closing costs and other related expenses.
Step 1 ASSESS FINANCIAL READINESS
Assess your present household budget and your annual income to determine if you are eligible for a mortgage and how much you can comfortably afford.
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Step 2 CONSIDER MORTGAGE OPTIONS
A mortgage is a loan, generally used to buy a property. How much you pay depends on how much you borrow (the principle), the loan’s interest rate, and how long you take to pay it back (the amortization period).
Do not be afraid to negotiate interest rates and mortgage terms with different lenders. They are offering you a product and talking to more than one lender helps you make an informed decision.
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Step 3 MORTGAGE DEFAULT INSURANCE
When you buy a home with less than a 20% down payment, the mortgage needs to be insured against default. This type of insurance protects the mortgage lender in case you are not able to make your mortgage payments. It does not protect you.
ARE YOU PLANNING TO PURCHASE A PROPERTY WITH LESS THAN A 20% DOWN PAYMENT?
If yes, you require mortgage default insurance which generally adds 0.6% to 4.5% to the cost of the mortgage depending on the total amount borrowed.
Mortgage default insurance enables you to purchase a home with a minimum down payment of 5% (10% for multi-unit dwellings) with interest rates comparable to those of a conventional mortgage.
Major providers of mortgage default insurance include Canada Guaranty Mortgage Insurance Company.
Step 4 RESEARCH GOVERNMENT PROGRAMS
The federal government has assistance programs to help homebuyers. Research government program requirements to see if you are eligible.
FIRST-TIME HOME BUYERS’ TAX CREDIT
A $5,000 non-refundable income tax credit on a qualifying home. The credit provides up to $750 in tax relief to assist first-time buyers with purchase costs. For more information, check the Canada Revenue Agency’s (CRA) website: www.cra-arc.gc.ca
HOME BUYERS’ PLAN
A one-time withdrawal of up to $35,000 from a Registered Retirement Savings Plan (RRSP) by first-time buyers to help purchase or build a home. Generally, you have to repay all withdrawals from your RRSP within 15 years. For more details, visit CRA’s website at: www.cra-arc.gc.ca
CMHC GREEN HOME PROGRAM
When you use CMHC-insured financing to buy or build an energy-efficient home or make energy-saving renovations, you may qualify for a premium refund of 25% on your mortgage default insurance. Check out CMHC’s website for more information: www.cmhc-schl.gc.ca
Step 5 FIND A HOME
Finding your perfect home can be a long process. Your REALTOR® will help identify the right type of home for you and continually research new listings in neighborhoods that meet your need.
Check out www.howrealtorshelp.ca to see how your REALTOR® can make the home buying process easier for you!
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Step 6 MAKING AN OFFER
Closing costs are the legal, administrative, and disbursement fees associated with buying a home. Understanding these fees will help you budget more accurately. Remember these are additional costs over and above the price of the home.
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Step 7 THE BAGGA TEAM MOVING CHECKLIST
INFORM THE FOLLOWING THAT YOU HAVE MOVED:
People & Organizations
Government Offices
Publications
Utility & Services
Professional Services
Business Accounts
Insurance Agencies
Need Help?
It’s important not to underestimate the power of a skilled negotiator. If you have any questions about the process, we’re here to help.
Step 8 WRAPPING UP THE DETAILS
Once the deal is made, your journey isn’t over. There is still paperwork to be done and calculations to be made.
If you are working with a great agent, they will handle all those details for you, and ensure everything is done properly, including coordinating with your real estate lawyer.
So although there are many t’s to cross and i’s to dot, a great agent will take care of those details. What a load off your shoulders!
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