First Time Home Buyer

If you are a first time home buyer, then your most important requirement is to take into account the Additional Costs involved in the purchase of a property, which include land transfer costs and the mortgage registration costs. Most lenders offer products tailored specifically for the first time home owner. These products specifically consider the needs and concerns of a first time owner like: minimizing the down payment required, assistance with closing costs, and/or greater control over monthly payment options.

The information noted below is designed for the potential first time home owner to address your specific needs and concerns prior to selecting a home.

We encourage you to review the content, and if questions arise, please feel free to Contact Me.

Factors to Consider When Buying Your First Home?

You are tired of renting and have started thinking about owning your first home. Before you start, several factors should be considered when purchasing a home:

How long do you plan to live in the home ?
If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.

The length of time that it will take to cover those costs depends on various economic factors in the area of the home, you should plan to stay in your home at least 3-4 years to cover buying and selling costs.

How long will the home meet your needs ?
What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, they could quickly outgrow the space. Therefore, they should consider a home with room to grow. Could alterations be done to create extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you'll need will help you find a home that will satisfy you for years to come.

Your financial situation, your credit and home affordability ?
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, solid lenders are more skeptical if your credit history is not good. Generally, only a couple of blemishes on a credit report will make you a good credit risk and could qualify you for the lowest interest rates. Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. This is a decision only you can make. Are you in a position where you expect to make more money soon? Would you rather be conservative and fairly certain that you can make your payment without stretching financially? Make sure that whatever you do, it's within your comfort zone.

Check out the Are You Financially Ready? page for advice on determining how much home you can afford.

Where will the money for the deposit and mortgage and transfer costs come from ?
Typically homebuyers will need some money for a deposit and mortgage and land/property transfer costs. However, with today's broad range of loan options, having a lot of money saved for a deposit is not always necessary - if you can prove that you are a good financial risk to a lender. If your credit isn't perfect but you have managed to save 10-20% for a deposit, you will still appear to be a very good financial risk to a lender.

The ongoing costs of home ownership
Maintenance, improvements, taxes and insurance are all costs that are added to a monthly house payment. If you buy a condo, townhouse or in certain communities, a monthly homeowner's maintenance or strata fee might be required. If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your realtor and your lender aware of your desire to limit these costs.

If you are thinking about buying your first home, it helps to understand the options available to you, as well as the entire Buying Process and what it entails. This section provides information on topics including the impact of closing costs and the professionals you will need to consult with through the home buying process.

We encourage you to review the content, and if questions arise, please feel free to Contact Me.