So, you’ve finally made the decision to transition from renter to homeowner? Congratulations! It is probably one of the biggest decisions you’ll make throughout your lifetime and no small feat.
But don’t fret! This is why it’s essential to surround yourself with a team of experts – including both a mortgage and real estate professional – to help you through the steps to home ownership, answer all of your questions and concerns, help you decide what kind of home you can afford and get you pre-approved for a mortgage.
With interest rates still relatively low, it is an ideal time for first-time homebuyers to embark upon homeownership. Oftentimes, a mortgage payment can be the same or even less than your current rent – and you have the added bonus of knowing that your money is going towards an investment in your future.
Renters often feel they can’t afford purchasing a home because saving for a down payment is a large undertaking. However, there are many solutions available today that can help first-time buyers with their down payments.
Many lenders will allow for a gifted or borrowed down payment. Of those lenders who will not provide this alternative, they may offer cash-back options that can be used as a down payment.
Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down.” To find out more about this, you can reach out to us.
In 2015, the government increased the RRSP Home Buyers’ Plan by $5,000, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free. Couples making a home purchase together, can each withdraw up to $25,000 from your RRSPs for a total of $50,000 tax-free.
Talk with a mortgage broker
When speaking with friends and family, you will get a lot of different opinions which may lead to added confusion on homeownership. By speaking with a mortgage professional, you can get the most up-to-date options, answer any questions, and help you understand what mortgage options make the most sense for you prior to setting out to find a home.