1. Are you Ready for Home Ownership
- Advantages: financial security, home modification flexibility, stability
- Disadvantages: Financial Stress, maintenance, responsibility
- Are you committed to a lease & when can you move (lease terms & notification)
2. Down Payment and Closing Costs
- You need a minimum of 5% of the cost of the home
- Need money for closing costs (need approx 2% for lawyer fee, inspection, land transfer tax, adjustments, mortgage insurance premium
3. Mortgage Pre-Approval
- Do you have good credit (have a credit history, pay bills on time, positive net worth)
- Determines you affordability based on income, mortgage payments, property tax, heating, loans/debts --> debt service ratios: GDS & TDS
4. Determine your Wants/Needs
- Location: commute, shopping, schools, park/recreation, family/friends
- New vs. resale, size, features, style, “upgrades”, lifestyle – wants vs. needs
- Type (detached, semi-detached/duplex, row/townhouse, condominium)
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5. Home Search
- Find a Real Estate agent you are comfortable with and understands your needs as a first time buyer
- realtor.ca/mls.ca, newspapers, for sale signs, new home builder websites
6. Make an Offer
- Offer to purchase with ideal price (comparable market value) and contract terms (closing date, chattels/fixtures, conditions: inspection, warranties) & counteroffer
7. Hire a Lawyer, Inspector & obtain Mortgage Commitment
- Obtain a lawyer, mortgage & home inspection within the contact time limits
8. Move into Home
- Move possessions, determine changes & maintenance needed, enjoy
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