Buying your first home in Canada in 2018? Well, a lot has changed since last year — and you’re going to have to understand how those changes impact you.
But that’s OK, because I am here to guide you through the buying process.
This First-Time Homebuyers Guide lays out all the terms you need to know when purchasing your first house, townhouse or condo. We’ve consulted experts and brokers to simplify all the jargon that makes buying property a complicated experience. We hope our guide will help take some of the stress out of your big decision.
Let’s get started.
A – First step is to get pre-approved for a mortgage.
There are couple of reasons you want to get pre-approved for a mortgage
before going house hunting. One is that it allows you to know what your
budget is so you can search for homes within your budget. Secondly, a
pre-approval locks you in at the current interest rate for 90 days or more.
Knowing your budget and locking in an interest rate, allows you to shop
with more knowledge, confidence and ease which is important
considering the new mortgage rules, such as the stress test, and the
possibility of interest rates rising in 2018. Furthermore, with pre-approval
and knowing your budget, you can put in an offer right away. This is
definitely an advantage when you are in a multiple offers scenario. By
knowing your budget, you can send in an offer with no subjects or
conditions, making your offer appear more desirable and serious to the
Seller.
B. Make a list and check it (more than twice)
Now that you have been pre-approved, the next step is to make a list.
Knowing what is a priority and what your needs are can help you search
and compare homes during your property search. The next step is to
make a list of all the things that you need and in a second column your
wants. Moreover, knowing your short term and long term needs can help
you during your property search. If you are looking for a home for long-
term living or a property that you will be investing in to either rent out or
flip, are all considerations that should be made and listed during your
search.
C. Keep an open mind
One thing to keep in mind while searching for a new home is that the
home that you are interested in might not check off everything on your
check list. That is why it is important to have your list and to make notes
of all the properties that you have viewed and compare them to each
other. The possibility of finding a home that has all your wants and needs
are small. Even if you do find such a home, in more bustling real estate
markets, where multiple offers situations are common, you might lose out
in acquiring that property. So it is important to be aware and not to lose
hope. Keep an open mind and know your priorities, this will help in
making the best decision for yourself when buying a new home.
D. Ask questions
As a first-time home buyer, buying a new home can be overwhelming and
you probably have a lot of questions, that is where your realtor can help.
First and foremost, do not be embarrassed to ask questions. Your realtor
is there to answer your questions and provide information to you that you
might not have even thought of or considered. Your realtor is aware that
you do not know everything to do with real estate, so if there are
questions about terminology, contracts or the overall process, your realtor
is there to help in making your home shopping experience easier.
E. Stick with the professionals
Having a professional agent on your side will always make your life
easier. A realtor’s job is to not just find you your next home but to give
you advice and provide proper guidance during the whole process.
Therefore, representation by a realtor with a good track record, who is
knowledgeable in the area, is an important factor when trying to acquire a
new home. Do your research, ask for referrals from family and friends
and have an in person discussion with your realtor to make sure you both
are on the same page and don’t be afraid to ask questions. A great realtor
will provide all the insight you need even before you ask for it.