First Time Homebuyers
When is the right time to buy? Your realtor can guide you through the buying process. I can list some of the requirements:
1. If you have enough money, though you don't have a job yet, you can still avail to buy your dream house. It is better to ask your bank to assess your financial capability. Or else you can use the services of a mortgage specialist from other financial institutiion.
2. There is now what they call "stress test mortgage" for first time homebuyers. This was I believed started in October of 2016 to test the first time homebuyers capability to sustain the mortgage and personal debt at the same time. You should pass the Bank of Canada prevailing rate before you can be approved of mortgage. And of course the best person to talk with this is your bank financial advisor or your mortgage agent.
3. Usually the minimum downpayment is 5% of your purchased property up to $500,000.00. Above $500,000.00, you will add 10% more on your downpayment. Remember downpayment is a just a part of the expenses. For first time homebuyers, there is an exemption or rebates for land transfer tax. To understand more on this issue, I copied a link from https://www.fin.gov.on.ca/:
Refund amounts and limitations
How much money could I receive?
For conveyances or dispositions that occur before January 1, 2017, the maximum amount of the refund is $2,000.
Beginning January 1, 2017, the maximum amount of the refund is $4,000. The increased limit of $4,000 applies only to conveyances or dispositions that occur on or after January 1, 2017, regardless of the date the agreement of purchase and sale was signed.
Beginning January 1, 2017, no land transfer tax would be payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.
Please take note that in Toronto, there are two land transfer tax to paid: Toronto and the province of Ontario. Outside purchase from Toronto, you pay only the province of Ontario.
4. Other expenses include the lawyer's fee and other small expenses which will be disclosed by your lawyer. A 1.5% of the purchased price of the property is a safe way to say for your closing cost.
5. Your credit history is one of the most important parts of your mortgage approval process. It studies the pattern of your payment. Can the bank trust you with their investments if you have a bad credit?
What to Do Next.
Kindly call me so that I can guide you through on the buying process. Use a realtor in buying a house, you are protected. The seller and the seller's listing agent of the property usually pays the buying agent or the cooperating agent. One instance that you should pay your buyer agent if the property you are interested in is for sale by owner( if the owner indicates that he/she will not pay the cooperating agent).
Now when is the right time to buy. Kindly call me and we will talk.
Have a great day.