Written by Ozzy De La Paz Maldonado   |   Posted on   |   100 views

Where to begin your journey to home ownership?

Buying a home is more than just a big transaction. It’s a long term source of wealth as you build equity in the home over time; something that doesn’t happen while you’re renting. But you’re going to need some savings in the bank to get started for the initial costs of buying a home.

Consider what financial programs and alternative sources are available for first time home buyers.

There are a number of government programs available that can help you with buying a home.  You’ll need a substantial amount of cash upfront to buy a home that isn’t covered by your mortgage – and we understand that saving up can be hard.  So take advantage of every avenue available to you so this initial savings isn’t an overwhelming hurdle.  Here are a few examples:

  • The First Time Home Buyers Savings Account (FHSA) is a government program that helps you set aside money for a home with many tax benefits.
  • If you’ve currently got RRSP’s, your financial advisor can tell you about how a portion of these can be used towards a first home purchase.
  • Set aside whatever you can each month in a separate account that you’re not tempted to touch!
  • Reach out to relatives that may be willing to assist you with saving for your down payment, or co-signing on your mortgage.

Talk to a Mortgage Professional.

While you’re busy saving up for your upfront purchase costs, you should talk to a Mortgage Advisor.  This could be someone from your bank, or an unbiased Mortgage Broker.  They’ll be able to look at your financial records and figure out what you could feasibly afford for a home. 

By checking with various lenders, your Mortgage Advisor can figure out what the best interest rate you are eligible for, and what your monthly payments would be when you buy a home.  This Mortgage Pre-Approval process is a very important step in knowing whether you are financially able to afford the monthly carrying costs of owning a home.

They’ll estimate what your monthly mortgage interest payment will be (principle vs. interest), your monthly property taxes, and any insurance requirements on your mortgage.

Remember: while your monthly mortgage payments may be a little more than what you’re currently paying in rent, your goal is to gain long term equity. More often than not, your home will grow in value over time; you may be able to sell it in the future for more than you paid for it!

Learn about Financing Options for Different Types of Homeowners and of course, Don’t Do This if You’re Approved For a Mortgage!

Consider different types of properties.

One option that more and more new buyers are considering is an investment property.  Imagine owning a multi-residential home (more than one legal unit in the building), where you live in one unit, and rent out the other to someone else.  It’s a fantastic way to supplement your mortgage payments as a home owner.

You might also consider a a multi-generational home where you buy a home with an inlaw suite, where your relatives live and help pay the monthly costs.  It offers more privacy than if your mom & dad were your roommates — usually they have a separate entrance, their own kitchen etc.  This is a great option if you have aging parents and relatives looking to downsize.

Make an offer!

When you’ve found “the one” you’ll want to put together your offer.  Your real estate agent will guide you with what an optimal offer should be, given the market and comparable pricing.  They’ll help you decide if you should put in a Conditional or Firm offer and what the benefits are of each. And they’ll ensure that you’re covered in the purchase agreement and not liable for any legal issues.  This is what makes working with a REALTOR® is so beneficial!  There’s a LOT of paperwork involved and you don’t want to go it alone.

*All information provided by the Brantford Regional Real Estate Association (BRREA) and ITSO for the highest number of completed transactions since January 1, 2015. All Brantford MLS® House Listings come from the various systems operated by Real Estate Boards and Associations across Canada. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used underlicense. The trademarks MLS®, Multiple Listing Service®, and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

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