Your first purchase
Buying our first home to stop paying rent is something we all dream about. If you are like most renters, you feel trapped living within the walls of a home that is not really yours. You are somewhat stuck and cannot see how you will ever be able to buy you own home.
There’s no need to feel trapped anymore
It doesn’t matter how long you’ve been a tenant or how tough your financial situation may appear. Truth be told, a little information can help you bridge the gap between being a tenant and a homeowner. Armed with this information, you will learn how to:
- Save money for a down payment
- Stop giving money to your landlord
- Stop spending thousands of dollars on rent.
Four little known facts that can help you buy your first home.
The problem faced by most tenants is certainly not their ability to meet a monthly payment. Everyone knows that you must fulfill this obligation every first of the month. The problem is accumulating enough capital to make the initial deposit on a property that will be yours.
Saving this amount to start in not as difficult as you might think, if you read the following four points.
- There are local or national programs (such as Home Buyer’s Plan) to help people access the housing market. You can even qualify as a first time home buyer even if your spouse had a home before, as long as your name was not registered as an owner. Make sure your broker is knowledgeable about access to property programs, so he or she can discuss all the possibilities with you.
- You could get help from your financial institution for your down payment and your cost of acquisition.
Even if you do not have the amount of the down payment, if you have no debt and have net assets (Eg a paid car) your financial institution may lend you the down payment by taking this asset as collateral.
- You can build a down payment without actually going into debt.
Borrow funds to invest in an RRSP, and use the tax return as a down payment. While the amount borrowed is technically considered a personal loan, the monthly payment could still be minimal. This way, the funds invested in the home and the RRSP is yours.
- You should be pre-qualified for a mortgage loan before you begin your search.
This is easily done and it gives you peace of mind when it comes to shopping for a home. Mortgage brokers can get you an approval in writing, with no cost or obligation. This can even be done over the phone. Better than any verbal approval, a written pre-qualification is equal to money in your bank account. You get a certificate that guarantees the level of your mortgage loan—very useful when you finally find the property of your dreams! Using these services can make the difference between getting a mortgage and being stuck with your landlord forever. This information is usually offered free of charge. Why would you continue to spend thousands of dollars on rent when you could take a few minutes to discuss your needs with a real estate broker and buy your own home? This conversation won’t cost you anything. Taking the time to explore the options available to you and discovering how you can purchase a home will help you relax and get excited about making this substantial decision.