For first-time homebuyers, planning ahead and following a budget are the two biggest keys to success. Knowing what to plan for financially, and how much you can afford, will make the entire process of buying a home a lot easier.
Have a plan for finances:
1. The first step will be figuring out how much you can afford. There are lots of free mortgage calculators online to help you find out what you can afford and qualify for. Here’s a mortgage calculator from CMHC.
2. Decide where your down-payment will come from and how you’ll save for it. It’s also important to note how much you’ll need for a down-payment, find out more about that here.
3. Determine your credit score and protect it (or improve it), to ensure your rating is in tip-top shape for mortgage application time.
4. Do your research on mortgage rates, and look into pre-approval. Make sure you ask a lot of questions, and shop around.
5. Plan for closing costs: lawyers, GST, inspections, etc.
Once you’ve become a homeowner, you’ll want to learn how to budget for home maintenance, and we’ve got a great guide for that here.