5 Tips for a First Time Home Buyer
Many people who have never bought a house see the purchase of their first home almost as an impossibility.
The reality is, for most people, what they pay out as rent, they would be able to carry the cost of owning a modest home. The key is to have realistic objectives, discipline and a realistic plan.
Allocate a set amount in your spending plan to be held in a separate account to build a down payment. After paying yourself first, this should be the second biggest allocation. If you don’t have it, you don’t spend it!
Familiar yourself with any government assistance programs and/or tax credits for first-time home buyers.
Home-Buyers plan. The Canadian government allows you to withdraw $35,000 per homeowner without penalty from their RRSPs. This could be a $70,000 down payment between two people.
Don’t get hung up on the 20% downpayment. The important thing is to buy that first home.
When you’re ready to start looking, get a pre-approval to set what you can afford and make sure to maintain a solid credit report.
Are you looking for home-buying advice from a professional financial advisor? Book a meeting with one of our advisors!
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