Taking the leap and becoming a first-time home buyer is a huge deal but it can also be a daunting experience. As a leading mortgage service in Mississauga, we are always working to ensure our clients have all the information you need to be successful and find the best rate on your mortgage.
To help you embark on your journey toward home ownership, we have developed a guide of essential tips for first time home buyers. Here is what you need to know about getting a mortgage.
Research Your Realtor and Broker
Gone are the days when consumers would select the first company in the yellow pages to represent them as a realtor or mortgage broker. Now, consumers make educated decisions based on information from other customers and personal interactions with the companies they are considering.
Rather than clicking the first result in a Google search, think about making a few calls to the local mortgage brokers in your area and getting to know their inside game. Ask questions like:
- How long have you been in business?
- What kind of licensure or certification do you hold?
- Have you worked with many first-time homebuyers?
- Which financial institutions do you partner with for mortgages in Mississauga?
These are just a few suggested questions to ask your broker but it helps to have a list on hand when you call or visit to ensure you cover the main points on your checklist during your interview.
Build a Realistic Budget and Stay on Track
The first tip we offer many of our clients is to create a budget that fits your lifestyle and to try to stick to it. Mortgage calculators are great tools for estimating the potential value of a mortgage but they don’t consider student loans or child support payments – which affect your overall financial state.
Working with your financial planner or mortgage specialist, you will develop a budget as a first-time home buyer. This will include legal fees, down payment amounts, interest and future payments, along with your regular monthly expenditures.
Once you know what you can spend, you can create an achievable goal for your new home and the amount you are going to spend on it.
Get Your Financial Ducks in a Row
It isn’t just your budget you need to worry about when planning for a first-time home buyer mortgage. There are several financial components that come into play during a property purchase. Before you begin shopping for your first house, consider organizing so you have:
- Enough funds available for your down payment
- Money set aside for closing costs
- Non-mortgage debt under control
- Required financial paperwork in order
Lining up these ducks early ensures everything is ready when needed and you aren’t left looking for extra funds later. Being prepared in a first-time home buyer situation will keep you on the winning side of your purchase.
Getting pre-approved for a first-time home buyer mortgage in Mississauga gives you a greater idea of your financial flexibility, potential rates and more. You know what you can afford and lets you begin your search in the right neighbourhoods and for a style of home which suits your budget.
The pre-approval process is quick. However, it doesn’t guarantee your quote. There are many factors affecting your mortgage amount, including your credit score, assets and monthly expenditure. Once you begin the loan process, your broker can help you shop around for the best mortgage amount, rate and term. This is why having a top-notch Mississauga mortgage broker is an asset to first-time home buyers.
Don’t be Intimidated by Bidding
Many first-time homeowners miss out on their dream home simply because the prospect of making a bid is daunting. The idea of a bidding war is intimidating but it helps to remember that you have just as much right to make a bid as the next buyer. Take a chance and see how things go. You might be surprised to learn that your bid was the best offer.
Working with a great realtor will help ensure your bid makes it into the pool. Your realtor may even have the inside scoop on other bids and help you boost your chances at winning your dream home while sticking within your budget.
Get Your Rebate
First-time Canadian home buyers are entitled to a few benefits, particularly when it comes time to file taxes. To receive the tax credit for your home purchase, you must claim it within one year. The claim is for a rebate of up to $750, and the home you purchase must meet certain criteria, such as:
- The house must be new or existing
- The house needs to be registered in your own name or the name of your spouse
- You must live in the house within one year of purchase
- The house must reside in Canada
There are also restrictions on the style of home and in order to apply for the rebate, you will need proof of purchase.
Applying for this rebate is a great relief to many first-time homebuyers as there is often maintenance and upkeep within the first year, especially if you have purchased an older home that needs repair. The rebate can be used on whatever you like, including maintenance or even a family vacation.
Contact StartMYPlan Today
StartMYPlan is a leading mortgage brokerage in Ontario, Canada. We service clients in and around Mississauga and strive to ensure our clients get the best deals on funding for new homes.
If you are a first-time homebuyer in Mississauga and need help securing a mortgage, we can help. Our team of experienced brokers are happy to answer any questions you might have about preparing for your purchase, future mortgage options and more.
For more information about buying a home for the first time, call sMp 1-888-831-6716 or contact us here.