Home Buying Process
Moving can be very exciting but there are so many things to remember to do! Don’t despair; whether you are doing it on your own, asking friends for some help, or hiring professionals, here is a quick guide to help you get through the buying process.
Avoid these critical mistakes that could cost you thousands of dollars when buying your home!
- Don’t “low-ball” your initial offer
- Understand the current market value of the home and comparable SOLDS.
- Get Pre-approved Financing
- A pre-approved mortgage can be done for 90 days for FREE. You can usually negotiate your mortgage rate between 1/2-1% off the posted rates with your lender.
- Have your agent arrange a home inspection
- A home inspection with a qualified inspector costs about $450.00 (approx). It could very well be your best money spent. You want to know exactly what you are bidding on.
- The most advantageous situation is to purchase your home in a good area. “Location, Location, Location” is true!
- When you have a down payment that is 20% or more, it is usually less expensive to arrange a mortgage and you save on CMHC insurance fees.
- Arrange an accelerated Bi-weekly payment plan on your mortgage.
- Understand exactly what your penalty payout will be if you move before your mortgage term is due. Each lender offers different terms and it’s important to know them.
- On your mortgage, you will save the most money if you opt for an accelerated Bi-weekly payment plan, or if you double up one payment per year. This will shorten your amortization periods by over 6 years!
- Take advantage of tax credits.
- Place up to $20,000.00 per person of your down payment in a short term RRSP to be held for at least 90 days, or until closing.
- Be sure to check into your lawyer’s fees ahead of time.
These are separate from disbursements. Ask your agent, who will be able to refer you to reliable professionals.
