The most rewarding part

Obviously, I am a Realtor, I am going to tell you the most important decision you make is to find the right Realtor to help you find the home.  The seller of the home pays all realty fees, so it does not cost you anything to have a competent advisor on your side.  One of the contracts we will sign together is one where I will affirm my commitment to you both as my first priority, treating your purchase with the same dedication as if it were my own.  The range of services Realtors offer their clients varies from brokerage to brokerage, so you should ask any Realtor you are considering working with the exact range of services they are offering you.  If your Realtor tells you every property you visit is wonderful and you should put an offer in on every property, it may be a hint that their service to you begins and ends at showing you properties.  So be alert to that. An easier way of figuring this all out is to just call me; I will take care of you.

The second most important thing to do is get pre-approved for a mortgage.  This lets you know precisely where you stand.  It will tell you what homes you can consider and may even narrow down what locations are possible.  As far as mortgage rates are concerned, it used to be that mortgage brokers were offering the lowest mortgage rates, but in the last couple years the best rates I have seen have been offered directly by the banks themselves.  Rates are published in newspapers and on the Internet, and depending on your credit score you may even get a discount off this published rate.  I always have current rate lists available if you are having difficulty finding this.

Armed with the information on where you can buy, and what your mortgage payments will be, you should make a budget to allow for any costs of maintaining your lifestyle together.  Car payments, commuting costs, vacation expenses, clothing, food, should all be factored in to determine if you could afford living in your home, or what things would have to change.  Maybe you will have to sell a car or stop taking vacations for a few years.  Could you both handle these changes?  If you changed the location of your home, how would these costs change?  If you changed the size of your home, would it improve your life?  These are questions that need to be resolved together. 

These questions will help you answer the all important real estate question:  Which features of your dream home are necessary and which are optional? Get together and draw up the list of features, I will need this list to guide me in selecting which homes we will see together.  I will go through your list and tell you how each of these features will affect your purchase.

You two are going to be homeowners soon – start saving!  Having a home is an investment. Every year its value increases without having to make a conscious effort.  Until then, there are expenses associated with the actual purchase that you will need money for.  For example, the land transfer tax, lawyers fee, as well as movers, maybe you will need to pay the CMHC insurance, or some new furniture and more.  So start putting money aside for your purchase.

Prepare yourself for the fact that while you may know a home you visit is the perfect house, your partner may not be so sure.  You will need patience to deal with this.  Most of the time women make up their mind immediately, while men may need two or three visits for confirmation.  You can review your list of ideal features together in order to discuss the property and compare it with others you have seen together. Do not get frustrated; use the experience to get a better understanding of what the other person wants in their home.  Patience will be required at other times too when another couple wants your ideal home as well and purchase it, this feeling will jolt you but don’t worry its only temporary.  Be patient.

For now, enjoy your time together, discussing your future and what you would both like to achieve, and how your home will help you with these dreams.  The discussions you will have together will be one of the most thrilling of your relationship.  There are more subjects to consider, and I will draw your attention to them as we journey together to find your dream home.

RRSP Home Buyers Plan

Do you remember all that money you put aside into RRSP’s each year?  You can use up to $20 000 per person of your RRSP savings toward a deposit on your first home.  You have to start repaying that money after two years, and each year thereafter you have to return at least 1/15th of the withdrawal.  You must have returned all of the initial withdrawal 15 years after that, or else there are penalties.  For more information click on this website:       www.cra-arc.gc.ca

New Home Land Transfer Tax Rebate

If you buy a newly constructed home, first time buyers are able to get a rebate up to $2000, on the land transfer tax they pay to the province.

City of Toronto Land Transfer Tax Rebate

First time buyers subjected to Toronto’s new Land Transfer Tax will receive a rebate up to $3725.

Not everyone has the patience and skill needed to help first time home buyers, if you are not completely certain of what awaits you on the way to becoming a home owner, please contact me, and I will explain all you need to know.