04/15/2024
First Time Buyer FAQ:
1. How much do I need for a down payment? The minimum down payment is 5% of the purchase price.
2. What are closing costs, and how much should I expect to pay. Closing costs include: land transfer tax & lawyers fees and work out to approx. 2% of the purchase price. You’ll need to have this money set aside in addition to your down payment.
3. Should I buy a home or continue renting: This really depends, talk with an agent you trust about the market and your future plans. One of the strongest investments you can make is buying a home but are you financially ready. What does your life look like, maybe the flexibility of renting suits you right now.
4. How do I get pre approved? It can be done by making an appointment or start by having a phone conversation. They will request some documents from you like your notice of assessments, a few months of bank statements, potentially a letter from your employer etc… They’ll let you know what they need and then can discuss what type of mortgage would suit you best. Let me know if you need a contact!
5. What expenses will I have beyond the mortgage payment? Consider ongoing expenses such as property taxes, home insurance, utilities, maintenance (no more calling the landlord!), future renovations or upgrades. Condos will have monthly fees: don’t let that deter you from considering a condo. It’s just another form of ownership where a portion of the monthly fees go into a reserve fund towards future repairs.
6. What are the long term benefits: building equity, stability, personalization, pride of ownership and appreciation over time.
7. How do I know it’s a good time: You know what they say… the best time to buy a house was 20 years ago. The second best time is today. Time in the market > Timing the market. The sooner you get that first step on the property ladder the quicker you can start building equity. The reality for most buyers is that the house prices increase faster than our ability to save. That first house doesn’t have to be the dream house, but it can absolutely help to propel you towards your future home goals.🚀