1st Time Home Buyers

OUR GOAL

There comes a time in a person’s life when it starts to make sense to purchase their first home. It could be a new job, a wedding or a new baby. Whatever the reason, it’s important to understand what is driving our client’s decision to buy a home, and then guide them in the right direction.

We find homes that suit the lifestyles and desires of our clients. We continually conduct market research reports to help our buyers make SMART and informed choices. By listening and getting to know what they are looking to buy, we establish PERSONAL relationships with PROFESSIONAL RESULTS. Through continuing education courses, and seminars we continue to educate ourselves to have in depth knowledge about the real estate market, our community, neighbourhoods and home buying.

GETTING PRE-APPROVED

Getting pre-approved for a mortgage is an important first step when beginning your quest for a home. The GET

SMART DUO works with mortgage specialists who are there to answer all of your questions, guide you every step of the way, and offer great rates to help save you money!

Getting pre-approved for a mortgage will allow you to know exactly how much you can afford, and what price ranges to look at. This saves you time and gives you confidence when looking at homes. You will also be able to see what your payments will be, and you will learn about the various mortgage options and terms available that best suit your needs. You can also lock in the interest rate which is typically guaranteed for 120 days. By locking in an interest rate, you are guaranteed to get a mortgage for at least that rate or better. You can rest assured that if the rate drops, that will be your new rate, and you are protected if the interest rates should rise. Being pre-approved may put you ahead of the competition and will demonstrate to sellers and their Realtors that you are a serious buyer, which can help when negotiating your home purchase.

FIRST TIME BUYER’S TAX CREDIT

The HBTC ( Home Buyers Tax Credit) assists first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for first-time home buyers, who must also save for a down payment.

First Time Home Buyers Tax Credit

The DOWN PAYMENT

If you don’t have a down payment saved for your first house, DON’T PANIC. One possibility is using up to $25,000 of your RRSP’s per person ($50,000 per couple) under the Home Buyer’s Plan. For more information, visit Canada Revenue Agency Home Buyer's Plan. Another way you can move into the home of your choice now is to lease-to-own. This allows you time to save a larger down payment and even repair your credit if needed. A portion of the monthly lease amount is credited towards your down payment and at the end of this time you have the right to purchase the home. Some younger buyers have their parents GIFT it to them.

CLOSING COSTS

A deposit is required when you put an offer on a home. Generally in the Quinte Area, $1000 is the going rate. This deposit is given once an offer has been accepted. The amount will be applied against the purchase of your home sale. The deposit is held in the listing brokerage’s trust account and is refundable if any of the sale conditions of the offer are not fulfilled.

Home Inspections are optional however we highly recommend completing one so that there are no surprises. A fee is required if you choose to do one for your potential new home. Typically a home inspection fee ranges between $300-$400.

Legal Fees are required to process the purchase of your home. These are due a few days prior to your completion date. Typically legal fees range between $1500-$1800.

Legal Disbursements are required to be paid to your lawyer and these are paid with your legal fees.

Land Transfer Tax for first time home buyers is typically exempt up to a certain price range (as long as you meet the requirements). Your lawyer will inform you more on this.

Mortgage Insurance can be added into your mortgage or paid separately. This isn’t due until after you take possession of your new home. Your mortgage broker will inform you more on this subject.

Home Insurance is required for your home purchase. This is due on closing and is an ongoing monthly expense. Your Insurance broker will go into more detail on this subject.