Buying Your First Home

If you are a first-time home buyer, getting professional mortgage advice from the Mortgage Brokers & Agents here at MortgageProOntario.ca is a great place to start.

We specialize in the kind of education that can help get new homebuyers off to a great start! There are many things to think about when buying your first home. Here are some of your important considerations:

Determine what you can afford

Before you start shopping for a home – and long before you consider putting an offer on one – let us help you determine how much home you can comfortably afford. With a pre-approved mortgage you’ll know the mortgage amount you qualify for and how much it will cost you to carry the mortgage. You’ll also get your interest rate guaranteed for a set period, typically 90 to 120 days, and both realtors and sellers will take you more seriously.

Your down payment

Down payment is one of your most important considerations before you look to purchase your new home. If you’re in the “saving up” stage of preparing for home ownership, this is a great time to meet with us so we can discuss your down payment options. In most cases you want to save at least five percent of the purchase price. If the funds are coming from your savings, you will need to provide a 90 day history of bank statements. You can also:

• Consider borrowing the down payment through a loan or unsecured line of credit.
• Get the down payment money gifted to you by a parent or other blood relative. You’ll need to provide a letter signed by the parent or relative outlining that you aren’t required to pay the money back.
• Use your RRSP under the Home Buyers Plan.

RRSP Home Buyers Plan

Under the Home Buyers Plan, if you are a first-time buyer, you can tap your RRSP and borrow from yourself tax-free to help with your home purchase. You then pay your RRSP back later. You can withdraw up to $25,000, and if your spouse or partner qualifies as a first-time homebuyer, he or she will also be able to withdraw $25,000. For more detailed information on the program, check out the information about the program on Canada Revenue Agency’s website. Also look for Form T1036, the required form for requesting a withdrawal, here.

Build a team of professionals

We’d be happy to help you build a strong away team so that all aspects of your home buying experience are efficient and professional. Your team will also include a professional realtor, real estate lawyer, and a home inspector.

Plan for closing costs

There are additional costs that come with buying a home so you’ll need to have some extra funds set aside to cover these costs. Generally, you can expect to pay between 1.5% and 4% of the home’s selling price in total closing costs. We can outline all of your closing costs so you won’t be caught by surprise.

Beyond the monthly payment

Remember that home ownership involves costs beyond the monthly mortgage payment such as utility bills, insurance, taxes, home upkeep. Get a realistic picture of those annual costs, and imagine that sum on top of your mortgage payment.

We look forward to helping you achieve your dream of home ownership!