Top Facts About RRSP Home Buyer’s Plan

 

 

What to Do When You’re a First-Time Buyer

As a first-time buyer, it can feel like there are a million and one things to do. Although it is a lengthy process, it doesn’t have to be complicated.  

Here are some top tips on what you need to do if you’re buying your first property.

Find an Area

Buying a home is a huge commitment. You may have been saving up for years to get your own place, so you want to pick a place that is perfect for you. Research a few different areas. Identify what the average property prices are and check out the local facilities. It’s also a good idea to physically go to the places you’re interested in to get a feel for the community and atmosphere.

Arrange Viewings

Plan to take a look at as many properties as possible in your chosen area. Viewings are usually performed either by the current homeowner or an estate agent. Make a list of everything you’d like to ask about the property and the surrounding area before you go. Be thorough as you take a walk around the home. Buying a home is probably one of the most significant purchases you will ever make, so check every corner and crevice! Don’t be afraid to ask questions while you’re there.

Apply for a Mortgage

Homes aren’t cheap! Unless you have sufficient cash to pay for the property, you will likely need a mortgage. There are different types of mortgages, each with unique features. Make sure you research which type will best suit your needs. The mortgage application process can take quite a few months due to the necessary documentation that needs to be submitted.

In Canada, to get a mortgage, you will need to make a down payment. The down payment is between 5-20% of the total price of the property. Alongside the deposit, you will need to provide additional documents, including government-issued identification, proof of current address, and proof of income and debts.

Check for Government Programs

Canada has the First-Time Home Buyer Incentive that helps people purchase their first home. There are no additional fixed monthly repayments, but instead, buyers must pay a minimum fee each month. 

 

This program is available for those who earn CAD 120,000 or less. It provides 5-10% of the purchase price of a newly constructed home and 5% of an existing or mobile home.

Get a Home Inspection

Every property should get an extensive inspection before a new occupant moves in. This survey checks over every aspect of the property so you can be aware of any serious issues or damage. If the surveyors find any problems, you may wish to withdraw from the purchase or renegotiate the price. 

 

Of course, several intricate steps must be taken to purchase your first home successfully. However, the steps above cover the basics so that you can become a proud homeowner in no time.