What you Need to Know as a Canada First Time Home Buyer

Buying your first home is an exceptional exciting time although it can also be very daunting.  Owning your own property comes with a range of responsibilities as well as the obvious financial commitment.  It also takes planning.  In order to take the first step on the property ownership ladder it is necessary to save enough funds to cover the deposit as it is generally not possible to acquire a one hundred percent mortgage.

Looking for a property is fun, but it is important to undertake a pre-approval process before you start looking.  This will ensure you know how much you can actually afford to borrow and that the necessary funds will be available for you subject to a range of checks.  Many people prefer to use the services of a reputable broker such as OE Mortgage.  This is particularly beneficial for Canada first time home buyers as they are new to the entire process and a little help can make a huge difference regarding the mortgage they can obtain.

From the moment you decide you wish to be a first time home buyer there are a variety of processes which you can complete to help ensure the process is smooth:

Property type

Whilst most people would love to live in a detached villa or similar, it is unlikely that this will be your first property!  It is important to consider what factors are important to you when selecting a property.  The number of bedrooms and area you would prefer to live in are particularly important but must be tempered with realism.

Property price

The obvious other side of this is confirming the average price of the property you desire in the areas you are looking at.  This will help you to confirm when the property will be affordable and how much funds you will need to raise for the deposit as well as the size of the mortgage.  If this is plausible in a set timeframe you will need to factor in any likely price rises in property in the area.

Broker

You should also choose your broker and speak to them as soon as possible; even if you are not yet ready to buy.  They will know about what schemes are currently in place to help first time buyers.  The government recognizes that it can be difficult for people to get started on the property ladder and often offer incentives to help you achieve that first rung.  This is good economic sense as it generally helps the economy as well by increasing cash flow and the overall wealth of people; even if this is a long term goal!

Insurance

One thing that many first time home buyers overlook is the need for insurance on their property.  In fact, owning a home is generally more expensive than renting when you factor in repair costs and potential upgrades to the property.  The benefit is in the long term when you own the property and no longer need to pay rent or a mortgage.  This is the ultimate reason to undertake any home buying loan; with or without the assistance of a broker.

 

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