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Exploring
a sustainable development future for the
Niagara Region
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There is a first time for everything. The first home purchase carries
the usual nervousness that all firsts carry. Do you remember your first
date? Do you remember your first day at school? Well
just wait until you are sitting at home while your realtor is out presenting
your offer on your very first home. Its a bit unnerving because you have
never committed yourself to such debt before and you are likely young,
inexperienced, and possibly a little unsure about the wisdom of your
decision.
If you have chosen the right realtor you will have been informed about what
you can and can not do as a first time buyer. You should have been told
the following:
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Determine how much your can afford.
As a general rule of thumb, monthly home carrying costs should not exceed
30% to 35% of your monthly income.
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Determine how much you have as a down payment.
CMHC requires at least five per cent down to insure a mortgage Do you have
an RRSP? Can you use it for your down payment? Do you have any other sources
to access for down payment? If you are using money from a relative
make sure that it is your account before you go to the bank. If it is
a loan from a relative, it may not count as your equity.
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Get pre-approved for mortgage financing.
Do yourself a favour. Before you go through emotional roller coaster
of finding the right house, see your banker and find out what you upper
limit is for financing. This is really important and should be your
fist step.
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