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!

  1. Don’t “low-ball” your initial offer
  2. Understand the current market value of the home and comparable SOLDS.
  3. Get Pre-approved Financing
  4. 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.
  5. Have your agent arrange a home inspection
  6. 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.
  7. The most advantageous situation is to purchase your home in a good area. “Location, Location, Location” is true!
  8. 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.
  9. Arrange an accelerated Bi-weekly payment plan on your mortgage.
  10. 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.
  11. 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!
  12. Take advantage of tax credits.
  13. 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.
  14. 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.