Whether or not you agreed with our last blog post and are in favour of buying new homes, if you are a first time purchaser, we are here to help you through the process. Making the switch from renting to owning is a big step!
Here are some things you will want to consider when taking this step:
- Find a great realtor and ensure they know your preferred neighbourhood and product well. Can they relate to your lifestyle and desires for your first home?
- At first thought, you may be excited to be rid of those monthly rent payments, but do not forget that purchasing includes monthly mortgage payments. Review your financing options before you look at any properties to ensure that you can afford both the down payment and the monthly mortgage payments. Your goal can be to get pre-approved for a home loan from a mortgage lender as this pre-approval is typically valid for 90 to 120 days.
- Unfortunately, the mortgage payments are not the only monthly cost you will incur as a homeowner. Remember to take taxes and insurance into account as well!
- Understand any closing costs that you may owe when the real estate transaction comes to a conclusion. These costs can range anywhere from 1-5% of your purchase price.
- Research whether you qualify for a property transfer tax exemption or first-time buyer’s tax credit. This varies by province.
- One of the most important items on your checklist is the home inspection. If you are purchasing a new build, this inspection may be completed by you, the purchaser. However, when purchasing a resale, you may have to outsource this inspection to a professional. Either way, the process makes you aware of what areas of your property may require attention or resources, and whether it will be a good investment in the long run.
- Schedule your moving plan in advance, and account for extra painting or cleaning time before filling the new home with your belongings.
- Speaking of cleaning, while your new home is empty, take advantage of the opportunity and do a complete, top-to-bottom clean.
- Ensure your new home is safe by changing locks or installing deadbolts on entry doors and checking batteries in smoke detectors. Develop a fire escape plan while you’re at it. Some new homeowners even purchase a fire-proof safe for storing important documents and valuables.
- Change your mailing address! You can also set up mail forwarding with Canada Post.
- Make your new house your home by combining your favourite design trends with your own personal flare. Enjoy the decorating process!
- Break your new space in by filling it with your closest family members and friends. Host a casual housewarming party to truly make your new house feel like home.