YOUR WISH LIST
Before you begin searching for a home, make a detailed "wish list" of what you want and in a home. Your REALTOR® will help you prioritize your list and will suggest features you may overlook.
First, you need to decide where you want to live or the neighbourhood you’re going to call home.
Location is just as important as the property you choose.
Decide what you need in a neighbourhood. Do you have children that are school age or will soon be? Are you single without a vehicle and using local transit? Are you downsizing from a large home in the suburbs?
When you have determined your requirements, your REALTOR® can quickly source information about potential neighbourhoods, pricing trends and community information and suggest areas that seem best suited to your requirements.
Second, think about the type of home you want, for example, condominium, townhouse or single family, new or resale, and the amount of space you need.
DETERMINE WHAT YOU CAN AFFORD
Pre-approval of a mortgage is when your lender has reviewed all your financial information and has determined the maximum amount of money you can borrow. The advantages to pre-approval include:You know how much you can borrow, so you don't waste time looking at properties you can't afford. You don't have to worry about rising interest rates while shopping for a home, as usually the mortgage broker will guarantee the current interest rate for 60 - 90 days. You have an edge when you make an offer, because the seller knows you're more likely to get a loan. You save time when you apply for your loan because you've already assembled your paperwork.
DOWNPAYMENT & MORTGAGE
A convenventional mortgage requires 25% or more downpayment of the purchase price. However, you may qualify for (CMHC) Canada Mortgage and Housing Corporation 5% Downpayment programme which allows you a high ratio mortgage where you receive up to 95% financing
COMPLETION COSTS
Additional costs involved in buying a home include mortgage insurance, home insurance, inspection costs, appraisal fees, survey fees, legal fees, taxes, Property Transfer tax.
Source: Realtylink.org