Planning to buy a home in Canada? This is a big decision that shouldn’t be taken lightly. It’s important to have the right information, resources, and experts to guide you through the process. Although buying a home can be intimidating, it can also be a very rewarding experience.
To get started, 6 things to know before buying a home in Canada for citizens and non-citizens:
#1 More Than Just a Down Payment If you have a down payment for your dream home, great! You’re one step closer to owning it. If you’re struggling to make the minimum down payment, the government requires a certain percentage of the purchase price, which ranges from 5% for a home worth $500,000 or less to 20% for a home worth $1 million or more.
#2 Get Pre-Approved for a Mortgage Before buying a home, it’s important to get pre-approved for a mortgage. This will give you a better idea of how much you can spend and lock in your current interest rate for up to 120 days.
#3 Look for the Best Price Interest rates are currently low, which can affect how much you pay on your mortgage each month. Keep this in mind when shopping for a home.
#4 Check Out First-Time Homebuyer Incentives The Canadian government offers the First Time Home Buyer Incentive (FTHBI), which is a loan to help first-time homebuyers purchase a home. The loan is interest-free and can be repaid within 25 years or when the home is sold. To qualify, you must be a first-time homebuyer with a household income less than $120,000.
#5 Work with a Realtor Working with a real estate agent can make the process of buying a home in Canada easier and even save you money. An experienced realtor can offer better access to homes, knowledge of the neighborhood and market conditions, advanced negotiating skills, support with paperwork, and guidance throughout the process.
#6 Do a Home Inspection Before acquiring any property, it’s important to get a home inspection. This can save you money in the long run and give you peace of mind that you made the right decision.
Buying a home is a dream for many people, and it can also be a valuable investment. Be sure to take the time to gather the information you need and have the right support to make the best decision for you.