Tips for First-Time Home Buyers in Canada
August 16, 2022 | Written By: Emma Jones
One of the most significant milestones in life is undoubtedly buying your first home. Buying a place to live affirms your success and a dream coming true for many. However, the buying process may bring some stress to this exciting life chapter. There are a few factors to consider before buying and a couple of things that can go wrong in the buying process. For that reason, some research along with our tips for first-time home buyers will help you make things easier and make you a homeowner in Canada in no time.
Reasons to buy a home in Canada
If you haven't owned a home before, there's a good chance you're not sure if you are ready to take on this responsibility. First-time home buyers in Canada should consider all the benefits of owning a property and see if the potential homes fit their priorities and lifestyle. Regardless of your specific needs, several things make homeownership a great idea:
- Stability – buying a home is a long-term commitment to a place that brings a dose of stability to your life. You'll finally feel like you belong somewhere and feel more secure and peaceful.
- Financial balance – fixed-rate loans and other monthly payments ensure financial predictability and the ability to make further long-term plans.
- Building equity – buying a home is undoubtedly a positive investment and a way to build equity. A well-maintained home will also keep increasing its price, so there's no need to worry about the appreciation rate.
- More freedom – when owning a home, you have all freedom in the world to personalize it just the way you've always wanted. You can now have a home you dreamed of your whole life – it's time to start planning the design, picking home décor, and framing those photos that have been waiting for so long.
How to make the process easier for first-time home buyers in Canada?
It's pretty common for people to be nervous before getting their first home. The process can seem complicated, and there's a lot of stress in picking the right home and getting it for a reasonable price. Luckily, there are ways you can break this down and make sure the whole procedure is smooth and fast.
Know your priorities
To find a perfect home, you must first know what you imagine it would look like. Surely, it's essential to be realistic, but setting some priorities before you go house hunting is necessary for first-time home buyers. Think about the potential locations, size, and floor plan you would be looking for. Consider the factors such as commute, family growth, proximity to schools, etc. These will help you narrow the list once you start browsing and find your dream home much faster.
Break down your finances
Another essential factor is your budget. Be sure to plan everything related to your finances well so you can know how much you can afford. Planning the budget will help you avoid the disappointment that can happen after falling in love with a home that's way out of your price range. Here's what you should think about:
- Down payment – think how much money you have to put as a down payment. These are the liquid funds you previously saved or received, which need to be 5-20% percent of the purchase price. The more expensive your property is, the higher your down payment.
- Monthly costs – consider how much you can afford to pay for the home, maintain it and still live comfortably. Undoubtedly, buying a property is a commitment and financial sacrifice, but you should have just enough left to live without problems.
- Previous debts – another thing people forget about when buying a home are their previous debts that don't stop after this purchase. These will affect your down payment and other costs related to the home, so it's best to take care of these debts before you go house-hunting.
Finally, don't forget to check if you're eligible for Canada's first-time home buyer's incentive. It's a 5-10% help with the down payment, depending on whether you're buying a resale or a newly built home.
Get preapproved on time
Don't wait until you find your dream home to start the preapproval procedure. As soon as you begin browsing homes, be sure to apply for a mortgage and get preapproved. This is an essential step in figuring out what's your budget for the new home and being more relaxed and confident during the search. Furthermore, do some research on types of mortgages and make sure you pick the one that will help you finance your home with ease.
Hire an experienced agent
Finding a person you can trust in the home buying process is essential for first-time home buyers in Canada. An experienced real estate agent who is part of the community and has insight into all the local matters will undoubtedly know what's the best property for you. They can give you more information about specific neighborhoods and recommend a home that will ensure you've got the most for the price.
Organize your move in time
Waiting till the last minute to find movers for a long-distance relocation can leave you stranded and without many options. Therefore, we advise contacting movers to ensure they are available for your chosen dates. Furthermore, with a professional moving team, every location is within reach, even if you're moving long-distance. Look for a team of experts with a lot of experience and skill, so you can be sure you can trust them. Double-checking who to hire is something you shouldn't underestimate in the process.
Don’t wait for too long to make an offer
You'll know when you see 'the one'. If a home meets all your criteria and fits your budget, don't wait for too long to make an offer. Good properties don't stay for too long on the market, so first-time home buyers in Canada should act fast when there's a good item on the market.
Purchasing your dream home will be easy when you know what to look out for. Follow our tips for first-time home buyers in Canada, and avoid most of the typical problems when buying real estate.