While discovering your ideal home is a wonderful experience, it can also be complicated and stressful.
It is an exciting moment to be a first-time homebuyer. For most people, owning a home is a dream come true since homeownership provides many advantages. However, we must keep in mind that purchasing the first home is a significant financial commitment.
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In comparison to the major Canadian cities, Winnipeg has some of the most inexpensive homes. According to the most recent statistics of the Canadian Real Estate Association, the average price of a home in Winnipeg will be $282,684, compared to $728,044 in British Columbia and $627,855 in Ontario. Also, The Monthly mortgage payment will be $1,166, and the monthly property tax is $286 in Winnipeg.
When purchasing your first home, there are additional expenses that you may not anticipate. With moving costs, legal fees, inspections, and taxes, buying a home entail much more than just preparing for a down payment.
It is not very unusual for first-time purchasers to overlook these fees and then experience sticker shock when the extra prices accumulate. Fortunately, Canadian first-time home purchasers have unique access to programs that help to offset some expenses. Several programs are available to assist potential home purchasers on their path to homeownership, ranging from rebates to tax credits.
You can get an independent mortgage broker to avoid such hassles. Let us give you some more details of why you should choose a mortgage broker.
Independent mortgage brokers are not limited in terms of the products they may provide. Instead, they will find the most advantageous lending package for your particular circumstances, whether with private funds, chartered banks, trusts, or insurance companies.
Nowadays, homebuyers have plenty of choices and facilities to choose from. However, it takes a great deal of time and effort. In addition, many Canadian homebuyers are intimidated by the mortgage procedure in today’s highly competitive market. A mortgage expert like Jason Wermie Winnipeg will act as your advocate and ensure that the mortgage you get is the best fit for your conditions.
Home Buying Tips
Now that we have an idea about home buying let us get into the steps of buying a home.
Set a Budget
Calculating your affordability is critical before you start searching for houses. Begin by doing your research to determine a monthly, biweekly, or weekly mortgage rate that fits your budget and that you will be comfortable with.
Contact your financial adviser, who can assist you in further calculating the appropriate budget. You will get an advantage with the budget by engaging your adviser. There are many things in life that you can do on your own, but purchasing a house should not be one of them.
Following that, your financial adviser may get a mortgage pre-approval on your behalf. Again, pre-approval for a reasonable price range is critical — and you should not begin looking for a house until this stage is completed.
Ascertain that you have the funds for a down payment and closing expenses, here you can get help from your adviser in estimating the cost. For example, if you purchase a home for less than $500,000, the minimum down payment is 5% of the purchase price, and closing fees range from 2% to 2.5 percent of the buying price.
Find a Realtor
Conduct research to find the best real estate agent. If you need assistance in locating reputable experts, your financial adviser may offer suggestions.
Understandably, agencies may want you to sign an agreement committing you to work solely with them, so do not be afraid to interview many before making a decision.
Consult with someone familiar with the region you want to reside and inquire about their expertise, service offered, and attitude to deal with buyers. Make sure that you and the realtor will like the house-buying process. After all, discovering a new home should be enjoyable!
When you have found a house that meets all of your criteria, the next step is doing a home inspection. Of course, you can do the inspection immediately. However, many first-time buyers put a conditional offer on the property during a home inspection, which eliminates the need to repeat this process until the offer is accepted.
In any case, a home inspection will reveal any hidden defects that may cost you hundreds of dollars. It may help you avoid purchasing a lemon or serve as a starting point for renegotiating the purchase price.
The inspector thoroughly examines various areas, including electrical systems, HVAC systems, plumbing, and internal/external construction. Additionally, they will inspect any outside area, the attic, and the basement.
When seeking a home inspection, begin by contacting your financial adviser, who may connect you with reputable experts. Similarly, your realtor can suggest someone they had worked with before who did an excellent job. In any case, be careful to check their references and the time they have been in business.
Make an Offer
When the time comes to make a purchase, your realtor will create an Offer to Purchase. This contains your offer price and any restrictions, such as obtaining finance, or the property passing a home inspection. Additionally, the offer contains information on the inclusions/exclusions and the planned possession date.
Home Closing Costs
Apart from the down payment of at least 5% of the property’s selling price, there are many additional expenses to consider. If the down payment is less than 20% of the purchase price in Canada, you must pay a mortgage loan insurance fee via CMHC or Genworth. The less money you put down, the higher the premium.
Also, a portion of your budget should be set aside for closing expenses. Closing expenses may include land transfer tax, a survey certificate, a zoning memorandum, and title insurance, among other things. The industry standard is that 2% to 5% of the purchase price should be considered for these expenses.
The largest of these expenses is the land transfer tax, which is determined based on the home’s value. That would be about $3,550 for a $300,000 house in Winnipeg.
Buying your first home in 2021 is a significant milestone, and you have worked hard to secure your own space. It is pretty likely to be one of the biggest and most significant purchases you will make in your lifetime. Good luck!