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Buying a first home 

Owning a home remains one of the highest goals for many people in Canada. Homeownership comes to a sense of security and pride, also one of the ways to build wealth for your family and loved ones.

Are you ready? 

The key to buying your first home is preparation. First, determine if you are ready to buy a home. Suppose you can not commit to staying in the same area for at least a few years. In that case, buying is probably not for you because of the transaction costs involved in buying and selling a home.

What can you afford? 

Approach a licensed mortgage agent/broker to look at your current situation and assist with your pre-approval. The mortgage agent will explain the different types of mortgages and other expenses to expect when buying a home, such as closing costs and additional fees. Tip: Don’t stress about the stress test.  Leave the stress to us!

Credit report review 

A few months before you start house hunting, review your credit report with a person who understands it. Lenders decide whether to lend you money and the interest rate you will pay based on your credit history. If you find the information you believe is wrong, get it corrected by contacting the credit reporting agency or the mortgage agent to assist you. 

Shop around, compare and negotiate 

Shop around and compare the mortgage rates and terms. Typically, you’ll find the best deal through a Mortgage Agent because they deal with the Banks, Credit Unions and many other institutions that provide a mortgage. Once you know what different lenders have to offer, try to find the best deal for your situation. You may even want to obtain a written lock-in from the lender to protect you from future interest rate increases.

Find a sales agent 

The sales agent will keep your interests in mind and won’t waste your time showing you houses out of your price range. An experienced agent can provide valuable help when moving into a new area. Ask family or friends to refer an agent they have used or interview at least three agents in your area. Consider using a buyer’s agent, a real estate professional who works only for you.

Do your homework 

Know the selling price of similar homes in the neighbourhood. Have your sales agent analyze the selling price of similar homes in the area and use the many Internet resources available to find out about the school districts, businesses and services available in the community. This information will help determine your bid for the home and might increase the value of your home when you prepare to sell. 

Get the home inspected 

It’s a good idea to make your oer contingent on a satisfactory report by a home inspector that you hire. The home inspector can help determine whether the house is worth the price you’ve offered to pay and make sure the home is in good condition. In addition, the inspector can point out potential problems that could be costly in the long run. You and your agent can then renegotiate pricing or cancel the deal. 

The closing 

Once all of the conditions for the mortgage are verified, the lender will package your mortgage up and send it o to your lawyer. Your lawyer will call you for a meeting to go over the legal matters of the mortgage. The lawyer will also handle the disbursements of the funds and register your name at land titles. We like to give the lawyer at least two weeks with your mortgage instructions so that things can go as smoothly as possible for you! 

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Suganthan Thavarajasingam

Mortgage Broker