Buyers Guide » Gettings Started
Before you
begin shopping for a home, make a detailed "wish list" of what you
need and want in a home. Your REALTOR® will help you prioritize this
list and suggest features that you may have overlooked. First, you
need to decide upon a location. Think about factors such as school
quality, crime rate and proximity to public transportation, shopping
areas, work, parks, etc. Read
about local neighbourhoods in our Community
Info section.
Second, you
need to choose the type of housing you want (i.e., condominium or
house; new or resale) and the amount of space you need.
Print the Home
Requirements Checklist, fill it out, and take it with
you to your Realtor
For more information,
read the following RealtyLink In Print articles:
| Determine What You Can Afford |
Before you
start looking for a home, you and your REALTOR® need to determine
how much you can afford. The main home buying expenses are the down
payment, the mortgage and the completion costs. Current interest
rates will effect the amount you can afford. Talk to your REALTOR®
about various homebuyer incentive programs that can assist you with
your purchase.
- For more
information, read the RealtyLink In Print article:
Down Payment
For a conventional mortgage, you will need to pay at least 25% of
the purchase price as a down payment. However, if you qualify for
the Canada Mortgage and Housing Corporation (CMHC) 5% down payment
program you can get a high-ratio mortgage where you receive up to
95% financing.
Although your
down payment can't be borrowed, gifts from friends or relatives
are fine. You can borrow up to $20,000 from your RRSP if you are
eligible.
Mortgage
Most people buying a home need to borrow a portion of the money
from a bank or other lending institution. Ask you REALTOR® to calculate
how much you are eligible to borrow based on your income and level
of debt. You can also use the mortgage
affordability calculator to determine how much you can
afford.
Completion
and Other Costs
There are additional costs involved in buying a home. These
include mortgage insurance, taxes, legal fees, house insurance,
inspection reports, appraisal and survey fees. If you are a first
time homebuyer, you may be exempt from the Property Transfer Tax.
- For more
information about the PTT read the following RealtyLink In
Print article:
- For more information
about Completion Costs
read the guide.
For more information
on borrowing your down payment from your RRSP, link to the following
site:
Home
Buyers Plan
[http://www.ccra-adrc.gc.ca/E/pub/tg/rc4135eq/README.html]
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