Congratulations, you are finally contemplating the biggest financial decision of your life.
Home ownership is life long dream of many Canadians.
of course the most important aspect of first time home ownership is having the right resources and enough finances to help you get exactly what you are looking for.
Are you Ready to Become a Homeowner?
Now that you have decided that it is time to buy a home, the first thing to do is evaluate your financial situation. Figure out how much you can afford to spend on the purchase. Remember, you need at least 5% for a down payment and then enough resources for the consecutive mortgage payments along with your own money and save for your home, including the tax-free savings account and the Home Buyers Plan. Also find a reputable mortgage broker who can guide you through the mortgage application process and help you become a successful first time home buyer. Our professional mortgage specialists can help you through this stage as well.
Additional Costs for a Home Purchase
There are also some additional costs associated with the purchase of a home. Start a savings account so you have enough money saved up to pay the various additional costs of buying a new home..The following are some of the costs you may incur:
GST- if you are buying a new home, you may have to pay 5% GST on the purchase price. However if you are planning to live in the home as your primary residence you may qualify for the new GST new Housing Rebate.
Property Transfer Tax- is the Provincial levy you need to pay to transfer property from one owner to another. it amounts to 1% of the first $200,000 and 2% on the rest. First time home buyers may be exempt for the purchases up to $475,000 if they qualify, or partial exemption up to $500,000. See the program for more details.
Lawyer or notary fees- legal fees usually amount to between $750 - $1200. Make sure you ask if there are any additional fees on top of the advertised conveyancing price.
Adjustments/ disbursements- sometimes there are some fees that are prorated to over payments that have already been paid by the seller. These may include property taxes, water, and sewer fees, strata fees, rent, and security deposits.