Prepping for a First Home Purchase

vaughan mortgages, real estate vaughan,

Purchasing your first home should be a memorable milestone. It’s quite the accomplishment to earn, save and make the right decision that can set up a successful future in the real estate market.   Many first-time homebuyers and their families seem to generally ask the same question – “How do I/We know we are ready?” Is there a way to know you’re ready? Well, actually there is. Here are a few tips to get you on the right track.

  • GIC’s & RRSP Contributions

Guaranteed Investment Certificates also known as GIC’S guarantee that in no case will you ever lose money. It might not be that you will make a lot of money on your money but your principal amount will always be safe. There is also something called a Registered Retirement Savings Plan (RRSP) that you can invest your money in. There are many advantages of having an RRSP to your name. Your contributions are all tax deductible and what you invest remains tax free in the RRSP. For first time homebuyers, you can withdraw up to $25,000 on a tax-free basis to put towards your first home when you take part in the Home Buyer’s Plan.

  • Get a Pre-Approval

After you’ve figured out how much you can afford for a down payment, decided what you must have in a property, and budgeted for closing costs, the next step is to contact a bank or mortgage broker in order to get pre-approved for a mortgage.  Getting pre-approved for your mortgage gives you an edge over other people who might be interested in the same property as you. The seller will know that you are a serious buyer, and you are able to confidently negotiate the purchase of a home.

  • Consider a market outside of your current home

Many first-time homebuyers are trading bigger cities like Toronto & Vaughan for areas within driving distance with better prices. Emerging communities present great opportunities from an investment standpoint to first-time homebuyers. Especially if looking at a detached house instead of a townhouse or condo.  Now, commuting isn’t for everyone.  So, be sure to also find a market whereby you’re not sacrificing too much time in order to make what seems like a sound financial investment.

Getting ready for the moment you sign takes years of discipline and the culmination of that patience should be a home you’re proud to call your own.  That said, the planning and executing does have some doubting their abilities to make that leap into the market for the first time.

Let me help you. Feel free to get in touch with ME anytime and I’ll be happy to get you on your way to a mortgage/loan that’s right for you and your loved ones.