Why Knowing your budget allows you to focus only on homes you can realistically afford.
💡Tip: Discuss with your Broker how they handle pre-approvals.
2. Understand Your Credit Score
✔️Check your credit report for any discrepancies.
Why A higher score could secure better mortgage rates.
💡Tip: Clear up any outstanding debt or errors on your report.
3. Set a Budget Beyond the Mortgage
✔️Factor in property taxes, maintenance costs, home insurance, and utilities.
💡Tip: Don’t forget closing costs (1.5%-4% of the home’s purchase price) and moving expenses.
4. Create a ‘Must-Have’ and ‘Nice-to-Have’ List
Why Narrow down features that are essential (e.g., number of bedrooms, proximity to schools) and features that are more flexible (e.g., backyard size, finished basement).
💡Tip: This list helps you stay focused and reduces emotional decisions.
5. Determine Your Down Payment
✔️Minimum requirement: 5% for homes under $500,000 in Canada but aiming for 20% avoids CMHC insurance.
💡Tip: Have proof of funds for the down payment and ensure the money is accessible.
6. Research Neighbourhoods
Why Schools, transportation, safety, and future development plans all affect your quality of life and home value.
💡Tip: Drive through potential neighbourhoods at different times of the day to get a feel for traffic and noise levels.
7. Estimate Monthly Affordability
✔️Work with a Mortgage Broker to determine your payment and does it fit your budget.
💡Tip: Aim for a monthly payment that’s around 30%-35% of your gross income.
8. Know the Market
✔️Is it a buyer’s or seller’s market? This will influence your negotiation power.
💡Tip: Be prepared for bidding wars in hot markets and to move quickly when you find the right property.
9. Be Realistic About Renovation Costs
Why Sometimes fixer-uppers seem like a good deal, but renovation costs can add up quickly.
💡Tip: Get quotes for any anticipated work before making an offer.
10. Work With a Realtor
Why A local realtor can help guide you through the market and negotiate a better deal.
💡Tip: Choose someone experienced and familiar with the areas you're interested in.
11. Prepare Required Documents
✔️Recent pay stubs, T4s, tax returns, and proof of down payment (e.g., savings or RRSP withdrawal).
💡Tip: Have these documents handy to avoid delays when you find the right home.
12. Know Your Closing Timeline
✔️Typical closing timelines are 30-90 days, but they vary depending on the market and your circumstances.
💡Tip: Factor in the time needed for inspections, appraisals, and securing your financing.
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