Five things you need to know about buying a home in Canada
“Five things you absolutely need to know about buying a home in Canada”
via Montreal Times.
“…1. You will need more than simply a deposit
It is no secret that buying a house is expensive, and although saving for a down payment should be your first goal, you should also set aside some money (usually 2 to 5 percent of the home purchase price) for closing fees. Save this additional money ahead of time so you are not in the red when it comes time to sign the contract.
2. First-time homebuyer incentives may help you save a lot of money.
Buying a home is one of the most expensive purchases you will ever make, but there are methods to save money. Consider some of Canada’s first-time homebuyer programs, such as the Home Buyers’ Plan (HBP), which enables first-time homeowners to withdraw up to $35,000 from their RRSP to fund a down payment. Other benefits include the $5,000 Home Buyers’ Amount, the GST/HST New Housing Rebate, and the Land Transfer Tax Refund for residents of British Columbia, Ontario, or Prince Edward Island.
3. Remove your emotions from the home-buying process.
When you emotionally connect yourself to home, the dread of losing out may develop very quickly. This is particularly true in high-demand real estate areas such as Toronto and Vancouver, where numerous offers are frequent. Emotional purchasers will spend more than their planned amount, waive key requirements, or do worse in order to get their dream house. So, before you go to an open house, check your emotions at the door. You will be glad you did it afterward.
4. You should absolutely have a house inspection performed.
Hire a house inspector after you make an offer but before you finalize anything. They will inspect your prospective new home and give you information on the building, plumbing, roof, and other features. This will enable you to make an educated choice before signing on the dotted line.
5. There is always the option to renegotiate.
No house is perfect, and your home inspector is certain to discover some flaws. If there are underlying concerns with your new property, you may be able to negotiate with the seller to get them fixed or to receive credits against your closing costs to compensate.
Regardless of how prepared you are to move into a new home, purchasing a property is one of the most important, if not the most important, financial choices you will ever make. Prepare yourself, save money, and remain organized by keeping track of all your expenditures in one location…”
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