As the weather warms up, a cottage by the lake may sound appealing ― but is owning a second home right for you? If you’re looking to purchase a place, prices will vary greatly depending on where you’re searching.
There are several important factors to consider before purchasing a vacation home, so don’t let the allure of a lake breeze or the excitement of water sports keep you from thinking it through. First, ask yourself these six questions: Continue reading →
Buying your first home as a couple? Check out these six tips.
Become a savvy home-buying duo.
Are you and your partner gearing up to be first-time homebuyers? You aren’t alone.
With real estate prices on the rise, taking on a mortgage payment as a couple may be more realistic than attempting to buy independently.
You may also find the process intimidating ― but fear not. Take note of these six tips that will help you and your partner be properly equipped to make the biggest purchase of your life: Continue reading →
In addition to calling upon a realtor for the purchase of your home, here are some tips provided by homeowners.
Think about the future
It’s essential to consider your needs, lifestyle and financial resources when choosing location. Because after many years, there’s nothing better than truly feeling at home!
Save up a good down payment
Wait until you have a decent down payment from your personal assets so you can get a reasonable mortgage and cover the 3% to 5% start-up costs. About 88% of buyers manage to do it by using their personal savings, including RRSPs and investments. About 41% of buyers save up a down payment of at least 20%; for 31%, it’s between 5% and 19%.
Look into the HBP
The Home Buyers’ Plan (HBP) is a government program that allows you to withdraw up to $25,000 from your RRSP (per person) to buy or build a home. You have up to 15 years to pay it back interest-free.
Do the math
Get preapproved for a mortgage so you can determine your budget and narrow your search to properties that meet your criteria.
Buy a house in a neighbourhood that’s going up in value and focus on the value of the land. What criteria should you consider to evaluate the area’s economic situation? Proximity and diversity of businesses and public services (e.g., schools, daycares, parks, hospitals, public transit) are good examples.
On the not-so-good side, here’s what they reported:
Skipping the home inspection
Underestimating the time and cost of renovations
Accepting a purchase offer with a closing day that doesn’t leave you enough time to find a new home
Not dealing with a mortgage broker
Not insisting that the former owners clear out the house completely before you move in
To find out more about the housing sector, visit www.desjardins.com/home. You can also contact a Desjardins mortgage representative at 1-844-626-2476.
According to Jonathan Haziza, a product manager for mortgage solutions at National Bank, the scale of the costs linked to buying a property tend to be underestimated by first-time buyers. So without further ado, here are some expenses to keep in mind for a realistic portrait of what lies ahead.
Your financial institution may ask for an evaluation of the property’s market worth. This happens when the cost is steep or the property contains various risk factors. Requesting an appraisal is a means of protection: either to ensure that payments won’t be above your means, or to verify that the property is truly worth what you’re about to pay. You’ll therefore need to hire an appraiser to produce the necessary documents.
Inspection fee Hiring a building inspector to check for hidden defects in pre-existing houses is crucial. This will help you avoid bad surprises that could cost you a lot; you’ll have peace of mind knowing that everything is as it should be. Continue reading →
Get to know these four people when buying a home. Assemble your dream team for a winning result.
Whether you’re a first-time homebuyer or getting ready to buy your second or third place, making a move can be exciting. But, it also can be intimidating and a bit overwhelming when you consider the many steps you need to take before picking up your new keys.
Fortunately, it’s a lot easier when you work with professionals who know the ins and outs. So consider reaching out to these four individuals during the home-buying process.
Real estate broker: You may think looking for potential homes is something you can do on your own. However, first-time buyers and even more experienced buyers can benefit from hiring a real estate professional. They can help you find listings that specifically fit your criteria, including listings that may not be advertised, as well as provide insight into the market. Plus, they can help you negotiate things like price, the date you can take possession and any extras you want included like repairs, furniture and appliances.
Lawyer or notary: A lawyer or notary may act as an advocate on your behalf throughout the home-buying process. They will help coordinate everything from drafting and negotiating the contract of the sale to examining inspection reports and mortgage documents. Hiring a lawyer or notary early in the home-buying process can save you time and risk.
Home Inspector: It’s to your benefit to hire a home inspector to look over the home before you buy. A home inspection may cost an average of $450 (may vary by province). But it’s often money well spent, because a home inspector can alert you to issues you may not see on the surface, like problems with the roof, plumbing, electrical, heating or cooling, windows and doors and foundation. Make sure to hire a certified home inspector, ideally with a background in engineering and experience doing home surveys in the area where you are buying.
Mortgage Specialist: Last, but not least, having a working relationship with a trusted mortgage specialist is essential during the home-buying process. He or she can help review your finances and determine a price range that is realistic for your budget, as well as help you decide what type of mortgage is right for your situation and how much you can afford for a down payment.