Buying Your First Home—Some Tips
- Start with a wish list: number of bedrooms and bathrooms,
proximity to workplace, schools and shopping.
- Check your finances: can you afford your home? Monthly
housing should not cost more than 32% of your gross monthly income.
And, your entire monthly debt load (credit card payments, car loans)
should not be more than 40% of your gross monthly income.
- More on finances: monthly living expenses. These include food,
clothing, childcare, transportation, personals, and entertainment. Make
sure you can afford mortgage payments after calculating total monthly
expenses.
- Find a realtor: contact a realtor in the area you
wish to live. A realtor is a trained professional with a wealth of information
on the local real estate market and real estate in general. Realtors
have access to the Multiple Listing Service, meaning they have information
on every property for sale province-wide. A realtor can help you make
informed decisions about pricing, and focus your search on properties
best suited to you. All realtors are licensed by the province, and are
required to adhere to strict standards of ethical behaviour.
- Financing: have your mortgage pre-approved. This
helps set the price range of the home you're seeking. The lender will
guarantee the interest rate for up to 60 days.
- Independent Appraisal: before offering a price on
a home you wish to buy, consider having an independent appraisal done.
This could keep you from paying higher than market value.
- Property Condition Disclosure Statement: your realtor can
give you a copy of this, upon request. This document contains complete
information about the property you want to purchase. Completed by the
seller, it could contain information that warrants more research into
the property before purchase.
- Condo Construction: make sure the condo construction
is of good quality, no matter how pretty it is! Copies of the minutes
to Strata Council Meetings are available, upon request. In this way,
you can find out what kind of problems have occurred in the past, and
what expenses have been incurred.
- More Condo Info: visit a condominium project right after a
rainfall to assess water leakage problems. All flat areas, including
walkways and a roof deck, and building surfaces should drain freely.
There should not be pools of standing water on them.
- Home Inspector: having a professional home inspector
look over the property is highly recommended. The written report should
include information on how well built the home is, if repairs are necessary
and the estimated costs of those repairs.
- Other Costs: legal fees are usually at least $500. There are
also property taxes and GST (if buying a new home) to consider.
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