Home-Buying Tips for Canadian Couples

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Home-Buying Tips for Canadian Couples

One of the major milestones in a married couple’s life is finding a new place to call home together. Whether you’re ready to tie the knot with your partner or you’ve just recently wed, you’ll find that buying a house is a more complex process than buying a car or completing a gift registry. You’re in search of a place that you can lay your head to rest as well as start a family of your own. Here’s what Canadian couples should know about finding that perfect home.

Securing a Down Payment For your Home

Many Canadians will need to finance the purchase of a home with a mortgage from a bank or lender. These lenders expect you to provide a down payment to show that you have some skin in the game. Per the Canadian government, your down payment is a percentage of the property price as follows:

  • If the house is $1,000,000 or more, then the down payment is 20%.
  • For homes between $500,000 and $1,000,000, you’re expected to put 5% down for the first $500,000 and 10% down for any amount in excess.
  • For properties over $1,000,000, you’ll have to pony up at least 20%.

Keep in mind that 5% of a residence worth $500,000 is $25,000. Saving money for a down payment is a significant undertaking, especially for a young couple.

Getting Pre-Approved for a Mortgage

Unless you can afford to buy a house with cash, you’ll need a home loan. Before you start falling in love with various properties, get a pre-approval from a lender so you can know which properties will be covered by a mortgage. Getting pre-approved also locks in the interest rate for a loan for up to 120 days. Changes in interest rates can significantly impact your monthly loan repayment, so it’s important not to go into the house hunt blind. Keep in mind that what you can actually afford and the amount a lender is offering can be vastly different. Not all lenders are the same, so you should shop around for the best rates.

Finding a Real Estate Agent For Your Future Home

When buying a house, you’ll want to have someone on your side, representing your best interests and walking you through the process. A real estate agent is an expert on the purchasing process and brings knowledge of the local area and market analysis tools. He or she has experience in finding homes and often has other resources to help you find a property with the features that are most important to you. Your agent advocates for you and helps negotiate the best price for the house that you want. You can go through the process without an agent, but why would you, especially when many sellers have agents working with them?

Kicking the Tires

Buying a house without having an inspection done is not like buying clothes without trying them on. You cannot do a simple return if you find that the property has major problems, especially things that would have been revealed in an inspection. It’s important to hire an experienced inspector who can check the structure, the electrical and plumbing systems, and more to make sure you’re not getting more (or less) than what you bargained for. An inspector can help create a punch list of items that need to be repaired or addressed before a sale. The issues that come up may also be grounds for negotiating a lower price.

A new home is a big step in your life together as a new or soon-to-be-married couple. In addition to deciding on the features that both of you need and want, you’ll also need to get your finances together to apply for a mortgage and save money for a down payment. A good real estate agent will walk you through all the steps, helping you to find the perfect Canadian castle to call your own.

Home-Buying Tips for Canadian Couples

One of the major milestones in a married couple’s life is finding a new place to call home together. Whether you’re ready to tie the knot with your partner or you’ve just recently wed, you’ll find that buying a house is a more complex process than buying a car or completing a gift registry. You’re in search of a place that you can lay your head to rest as well as start a family of your own. Here’s what Canadian couples should know about finding that perfect home.

Securing a Down Payment For your Home

Many Canadians will need to finance the purchase of a home with a mortgage from a bank or lender. These lenders expect you to provide a down payment to show that you have some skin in the game. Per the Canadian government, your down payment is a percentage of the property price as follows:

  • If the house is $1,000,000 or more, then the down payment is 20%.
  • For homes between $500,000 and $1,000,000, you’re expected to put 5% down for the first $500,000 and 10% down for any amount in excess.
  • For properties over $1,000,000, you’ll have to pony up at least 20%.

Keep in mind that 5% of a residence worth $500,000 is $25,000. Saving money for a down payment is a significant undertaking, especially for a young couple.

Getting Pre-Approved for a Mortgage

Unless you can afford to buy a house with cash, you’ll need a home loan. Before you start falling in love with various properties, get a pre-approval from a lender so you can know which properties will be covered by a mortgage. Getting pre-approved also locks in the interest rate for a loan for up to 120 days. Changes in interest rates can significantly impact your monthly loan repayment, so it’s important not to go into the house hunt blind. Keep in mind that what you can actually afford and the amount a lender is offering can be vastly different. Not all lenders are the same, so you should shop around for the best rates.

Finding a Real Estate Agent For Your Future Home

When buying a house, you’ll want to have someone on your side, representing your best interests and walking you through the process. A real estate agent is an expert on the purchasing process and brings knowledge of the local area and market analysis tools. He or she has experience in finding homes and often has other resources to help you find a property with the features that are most important to you. Your agent advocates for you and helps negotiate the best price for the house that you want. You can go through the process without an agent, but why would you, especially when many sellers have agents working with them?

Kicking the Tires

Buying a house without having an inspection done is not like buying clothes without trying them on. You cannot do a simple return if you find that the property has major problems, especially things that would have been revealed in an inspection. It’s important to hire an experienced inspector who can check the structure, the electrical and plumbing systems, and more to make sure you’re not getting more (or less) than what you bargained for. An inspector can help create a punch list of items that need to be repaired or addressed before a sale. The issues that come up may also be grounds for negotiating a lower price.

A new home is a big step in your life together as a new or soon-to-be-married couple. In addition to deciding on the features that both of you need and want, you’ll also need to get your finances together to apply for a mortgage and save money for a down payment. A good real estate agent will walk you through all the steps, helping you to find the perfect Canadian castle to call your own.

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