I’m a First Time Home Buyer, What do I Need to do?

rajan — Mon, 26 Apr 2021 12:00:00 +0000

Buying your first home is a big deal! If you are a first-time home buyer, you might be anxious, stressed, or really excited! Buying a house is a grand adventure, but like any adventure, there is a lot of planning involved. These tips will help you organize this life-changing adventure!

Get Pre-Approved For a Mortgage.

https://solidgroundmortgages.com/family-is-outgrowing/ – link out to this site to speak with a mortgage agent. When preparing to speak with a mortgage agent, there are things that you need to know and disclose to see if you are qualified to get a mortgage. These factors include:

disclosing current and 2 year job history,
where your down payment is coming from,
what your plan for the future is,
the type of house that you wish to purchase, and,
the geographic location of the property

There are two reasons why disclosing your down payment source is important. First, if you’re paying the down payment out of your own savings as a first-time home buyer, you likely won’t have enough to cover more than 20% of the purchase price. Covering 20% is significant because if you can only pay less than that amount, you will have to pay the mortgage back in 25 years. This fixed time frame is called “amortization”. If you pay off more than 20% of your down payment, your amortization is more flexible. The second reason is, if you are gifted some or all of the down payment, it can only come from immediate family members. Otherwise, lenders will not loan you the money, it is a general rule that Canadian lenders follow. Perhaps, it is because immediate family would not expect a repayment of the money.

Everyone’s home buying situation is different. If you’re looking for more information, specific to you…
I suggest you read here, or you can contact me, Klaudia Nabialek if you have any mortgage inquiries.

Determine Your Budget!

How much can you realistically spend on a house? How much can you afford to put into the house if necessary? Can your (and/or your partner’s) income support all of the expenses associated with owning a house?

All of these questions are important to determine which house or neighbourhood you can afford to live in.

Making a budget may be a boring task, but it is necessary! Ensuring that you’re putting your money toward the priorities in life, is important, especially when it comes to owning a house. When you buy a house, you enter a contract that includes other necessary living expenses. Do your research to see where the cost of living fits your budget!

Important note: don’t forget to work the cost of your agent’s commission into the budget!

Find Which Realtor® is Good for You!

Being a first-time home buyer only happens once in each person’s lifetime, if that. Having the right Realtor®can make a positive impact on your home buying journey, especially if you have never gone through this process before. It is necessary to find an agent who is familiar and empathetic to your needs, and understands your limited knowledge of the real estate market.

Some ways that you can determine if you have found the right agent is:

- Talking with people you know. Can they refer someone to you?
- Research potential agents. What is their reputation like?
- If you’re at the point of signing a contract, take a close, thorough look. Will they provide what you need?

Picking the Right Neighbourhood for You!

There are some really great houses in ideal neighbourhoods, but sometimes there are nice houses in not-so-nice neighbourhoods. Make sure the neighbourhood you choose fits your lifestyle and future plans!

It is important to find the neighbourhood that you want to live in. If you’re newlyweds and plan on having a family, find a family-friendly neighbourhood. For example, a place close to schools, parks, and maybe recreational centres.

You will also want to consider discussing proximity to urban centres. If you want a family, you might want to live in a suburb where there’s lots of land space. However, what is the commute like from the suburbs?

Determining these key factors will help your agent find you your ideal house

Are You a First-Time Home Buyer in Search Realtor®?

Contact Klaudia Nabialek! She is:

The post I’m a First Time Home Buyer, What do I Need to do? appeared first on Klaudia Nabialek Realtor®.

Do I Qualify as a First-Time Home Buyer?

rajan — Wed, 24 Mar 2021 18:16:00 +0000

What is the “First-Time Home Buyer” Incentive?

In terms of what financially qualifies as a first-time home buyer, there are specific, technical requirements. Once you’ve owned a home, you won’t qualify for the “first-time home buyer incentive”. There are exceptions to this rule, based on individual circumstances and the province that the property is located.

The first-time home buyer incentive is a rebate on the land transfer tax (or property transfer tax) associated with the value of the property you have purchased. Anyone over the age of 18, who has never owned a home before can qualify for the Land transfer tax rebate. Land transfer taxes are levied on properties in Ontario, Quebec, British Columbia, Manitoba, Nova Scotia, New Brunswick, and Prince Edward Island. However, the land transfer tax rebates are only available in provinces where the amount of the tax is significant. The chart that is linked below provides some insight as to how much you can qualify for, contingent on the province and value of the property.

I’ve Never Owned A Home, But My Spouse Has. Do I Qualify?

This is a complicated question. It is all contingent on the Ministry of Finance’s conditions for the province that you have purchased in.

The short answer is yes, if you live in Ontario or British Columbia. “A qualifying purchaser may claim a refund in proportion to his or her spouse’s interest if that purchaser’s spouse has owned a home before becoming the purchaser’s spouse, but not while being that purchaser’s spouse.” In other words, if you were already married when they owned a house, then you are not eligible. If, however, they no longer owned a house at the time you wed, you are eligible. The catch is, you will only receive the rebate for your portion of the payment. If you purchase a house on Prince Edward Island, you cannot claim the tax rebate if your spouse has owned a house, even if you never have.

To better understand your circumstances, it would be best to reach out to a real estate lawyer.

My Spouse and I Have Only Owned a Home Abroad. Do I Qualify?

If you have owned a house anywhere in the world, you will not qualify as for the first-time home buyer incentive.

I’m Helping My Child Purchase Their First House. Can They Still Qualify?

If you and your child are purchasing a home 50/50, your child can still claim 50% of the rebate.

I Am Purchasing My First Home, But I Won’t be Living There; It’s A Rental Property. Do I Qualify?

According to the Ontario Ministry of Finance, the owner can only qualify for the tax rebate if they are using the house as the principal residence within the first nine months after purchasing the property.

For information on different provinces qualifications:

Ministry of Finance – Ontario

Ministry of Finance – British Columbia

Ministry of Finance – PEI

Are You a First-Time Home Buyer in Search Realtor®?

Contact Klaudia Nabialek! She is:

The post Do I Qualify as a First-Time Home Buyer? appeared first on Klaudia Nabialek Realtor®.