Buying your first home in Canada can be an overwhelming experience. Here are some tips to get started!
There are many factors to consider when you are buying your first home in Canada. For example, what are the house prices like in Canada? Is it a buyer’s or seller’s market? Is it the right time to buy a home? Where should you go for professional advice?
This guide is meant to equip you with essential information about buying and financing a home. If you are hoping for a positive home buying experience, here are a few important things to consider:
Choosing to Buy a Home
The act of buying a home is different from renting one. There is more financial responsibility when you have insurance, mortgage, property taxes, bills, and other expenses that you may not be responsible for when you are renting. Additionally, it is important to consider all of the work, services, and repairs that you will be required to pay for to maintain your property. This will include fixing things, removing snow, and maintaining your lawn.
Before beginning the process of buying your first home, you must confirm that you have the time, dedication, and finances to support this decision. If you are ready to continue, then it’s likely that you are going to need a bank loan to afford it. This loan is known as a mortgage.
Finding The Right Mortgage For You
There are tons of mortgage options. If you aren’t sure where to start, then connect with a professional mortgage advisor. They can work with you to create a financial plan that will predict the amount of money you will need for a down payment, how much money you should borrow, and the length of time it will take you to pay it back based on your financial situation.
Most importantly, consider your financial goals to make sure that your new home costs will not negatively impact your other goals. Begin building your financial plan from there.
House prices in Canada can vary based on where you choose to settle. For example, a large, populated city like Toronto, Vancouver, or Montreal can cost more than a suburb area in a smaller city or town. Therefore, factor in the housing market costs of where you want to live. To gain a sense of average housing costs in each province, check out the Canadian Real Estate Association.
Canada offers various types of mortgage rates. Some types are fixed while others are variable. If you are not sure which option is best for you, then a mortgage advisor or a financial planner can help guide you.
For the most part, fixed rates tend to be higher than variable rates. A fixed rate stays the same throughout the mortgage term so you do not have to concern yourself over increased interest rates. However, a variable rate may be lower at the start of your mortgage and increase during the mortgage term.
Consider all of these factors before buying your first home in Canada, so that this becomes a positive experience. Above all, make sure that you understand the average prices of homes in the area and whether this is the right time for you to buy. Best of luck with house hunting!
*Opinions expressed are those of the author, and not necessarily those of Student Life Network or their partners.