A Guide to Buying Your First Home in Canada: Key Takeaways

Buying your first home is an exciting milestone, but it can also feel overwhelming. Sagen’s "First Home" guide provides a comprehensive roadmap to help first-time homebuyers navigate the process with confidence. Here are the key highlights form article https://www.sagen.ca/wp-content/uploads/2023/08/2020-06_SGN_BR_FIRSTHOME_08.23_v2.pdf:

1. Understanding the Costs of Homeownership

• Beyond the purchase price, first-time buyers need to budget for additional costs like:

  • Down payment (minimum 5% for homes under $500,000, but higher for more expensive properties).

  • Closing costs (legal fees, land transfer taxes, home inspections, etc.).

  • Ongoing expenses (property taxes, utilities, maintenance, and insurance).

2. Saving for Your Down Payment

• The guide emphasizes the importance of saving early and explores options like:

  • RRSP Home Buyers’ Plan (HBP): Withdraw up to $35,000 tax-free from your RRSP to fund your down payment.

  • First-Time Home Buyer Incentive (FTHBI): A shared-equity program where the government contributes 5-10% of the home price to reduce mortgage costs.

  • Gifted funds from family members, which can be used for the down payment.

3. Getting Mortgage-Ready

• Before applying for a mortgage, ensure you:

  • Have a good credit score.

  • Manage your debt-to-income ratio.

  • Gather necessary documentation (proof of income, employment history, etc.).

• Consider getting pre-approved to understand your budget and strengthen your offer.

4. Exploring Mortgage Options

• The guide explains the differences between:

  • High-ratio mortgages (for buyers with less than 20% down payment, requiring mortgage default insurance).

  • Conventional mortgages (for buyers with 20% or more down payment).

• It also covers fixed vs. variable interest rates and amortization periods.

5. Navigating the Homebuying Process

• Steps include:

  • Working with a real estate agent to find the right property.

  • Making an offer and negotiating terms.

  • Completing a home inspection to avoid unexpected issues.

  • Finalizing your mortgage and closing the deal.

6. Additional Resources and Support

• Sagen highlights its Homeowner Assistance Program, which provides financial counseling and support for homeowners facing financial challenges.

• The guide also encourages first-time buyers to seek advice from mortgage professionals and real estate experts.

Your Dream Home Awaits – Let’s Make It Happen!

The journey to homeownership doesn’t have to be daunting. With the right preparation, knowledge, and support, first-time buyers can confidently take the leap into the real estate market. Whether you’re saving for your down payment, exploring mortgage options, or navigating the closing process, this guide is a valuable resource to help you achieve your dream of owning a home.

But you don’t have to do it alone. As your Tri-Cities real estate expert (Coquitlam, Port Coquitlam, Port Moody), I’m here to guide you every step of the way. From finding the perfect property to negotiating the best deal, I’ll ensure your homebuying experience is seamless and stress-free. 🏡💖

🏆 Let’s make your dream of homeownership a reality! 🏆
📞 Call or text me today at 236-992-8989 or email me at TaraKennedySells@gmail.com.
🌐 Visit my website at TaraKennedy.ca to explore listings and resources tailored to your needs.

Tara Kennedy
REALTOR® ABR, RENE, SRS
Royal LePage ELITE West
Always Putting Your Best Interest First! 🌟

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