Buying your first home is an exciting and significant milestone in your life. Taking the leap from renter to homeowner is definitely very rewarding. Understandably, the transition can also be a little bit scary at times, as any life ‘first’ you encounter usually is. But with proper and thorough guidance from Geon, you can feel confident that the buying process will be realistic, thrilling and overall, very fun.

Common Questions Regularly Asked When Considering Buying a First Home

Why buy instead of rent?
Why use a real estate agent?
How much money do I need ?
How much can I afford?
Do I have to get a pre-approved mortgage?
Is there any assistance for first time buyers ?
What if I want to purchase a new home, versus a re-sale home ?

Why should I buy instead of rent?

• A home is an investment. Renting property is not.
• When renting, you pay your regular rental fees and that money is gone forever to somebody else. When you own your own home, your monthly payments (mortgage) go back into the home itself, so really back into your own pocket.
• The value of your home may also go up in value over the years, increasing the equity of your home, making money for you.
• As the interest rate has hit all time historical lows, money has never been this cheap to lend. Consider a monthly rent of $1500/month, totals $18,000 paying someone else’s investment.

Finally, you’ll enjoy having something that’s all yours – a home where your own personal style can be reflected.

Why should I use a real estate agent?

• All the details involved in home buying can be a little mind-boggling. A real estate agent guides you through the entire process and makes the experience much easier.
• A real estate agent is knowledgeable about the important details you’ll want to know about a neighbourhood you may be considering, the quality of schools, safety of the neighbourhood, traffic volume, etc.
• A realtor helps you find a home that you can afford, and gives you immediate access to homes that are currently available, saving you hours of driving around neighbourhoods.
• When it’s time to make an offer on a property, you will be comfortably well educated so there will be no surprises during the offer process.
• Your real estate agent is always on your side.

How much money do I need to buy a home?

• That depends on a number of factors, including the cost of the property and the type of mortgage you chose to get. Generally, you need to come up with enough money to cover three main costs:

“Earnest Money”? (Deposit)
Earnest money is t he deposit you make on a home when you submit your offer, to prove to the Seller that you are serious about wanting to buy the house. This will become part of your down payment for the property.

Down Payment?
A percentage of the cost of the home that you must pay when you take possession of the property.

Closing Costs
To find out all closing costs to expect when buying a property, click here to take you to this Section of my website.

How much can I afford?

• The more money you can put towards a down payment on the home, the lower your mortgage payments will be. It is possible these days to be able to have as little as 5% down payment to qualify for a mortgage.
• Use the mortgage calculator to determine how much you can pay towards a mortgage.
• After meeting with you, Geon also recommends talking with a mortgage broker. They will give you a detailed picture of the type of mortgage options best suited to your needs and exactly how much you can afford. That way you will feel comfortable in looking at properties knowing you can afford them.
• A mortgage broker is of no cost to you. Here are some recommended mortgage brokers.

Do I have to get a pre-approved mortgage?

• No. However, it is less hassle when you have a pre-approved mortgage, as it lets you know before you go looking for your home how much you can afford to borrow based on your qualification and personal credit rating.
• Once you are pre-approved, you can confidently negotiate an offer on a home. A seller also prefers to negotiate an offer of a purchaser who has been pre-approved.

Is there any assistance for first time buyers in Ontario?

• Both the Government of Canada and the Ontario Government has established programs to assist first time buyers. The two best-known programs are the RRSP Home Buyers Plan and the Land Transfer Tax rebate. Your mortgage broker will be able to tell you if you qualify for this assistance.

• Buying a brand new home is similar to buying a resale house or condo. Read more about preconstruction sales.

Ready to get started?

Request a search for homes that are available in your desired area, read more about the steps involved with buying a property, or contact Geon to discuss your needs and answer your questions.