The buying process for a first-time home buyer isn’t as straightforward as it appears. The process of buying a home should ideally start years prior to the investment.
If you are thinking about buying your first home, here are some things you need to consider:
- Start saving now.
Take a hard look at your spending habits. Do you have the ability to put away a good chunk of money each month towards saving for your next home? Or perhaps you have some dollars saved in a TFSA or RSP that you’d like to put towards an investment in a new home. Either way, going into the purchase of a home with nothing down will make the process that much harder. Not to mention your payments each month will be higher. The more you can out down on your new home, the better. Consider seeing a financial consultant or planner to get you started.
2. Understand everything else that goes with buying a new home.
The house is just the beginning. You’ll likely want to furnish it and buy new items to nest in your new space. Some homes come with blinds and appliances, others do not. Consider purchasing a home that already has these items in the space. Renovating a home? Factor in every item in your renovation from floors to electric. And don’t forget landscaping! A lot of newer homes do not come with grass or even grading in the yard. These are all items to factor into your costs.
3. Pretend you already have a mortgage.
In order to situate yourself as a new home owner and get used to mortgage payments. Choose a few of your dream homes, talk to your broker about ballpark monthly payments and start putting the dollars you’re saving into an account labeled “mortgage”, this will get you used to paying for your mortgage while also building up your down payment.
Spring is almost here and soon enough Calgarians will be starting up their hunt for a new home.