First time home buyer tips. Must-read for a first-time home buyer!
First time home buyer tips are a necessity for you to enjoy a smooth and uneventful transition into home ownership. The following info will shed some light on the steps and protocol that should be followed, especially on your first purchase. This, of course, being the biggest purchase you will have done in your life, to date.
Must-read for a first-time home buyer
Acquiring real estate property for the first time in your life is a serious and exciting step. For it to go smoothly and confidently, you have to be well-prepared. It includes not only such practical things as hiring a real estate expert and choosing the home of your dreams. It is also gaining access to all available relevant information regarding loans, grants, etc. This article will give you some insight into Calgary’s real estate market.
First time home buyer tips available to everyone
Currently, first time home buyers enjoy excessive recognition from almost everyone, starting with the government. This carries right thru to real estate agents and all the media information. Everyone is offering help and support for those who decide to embark on this remarkable journey called home ownership. Now seems the perfect time to fulfill your dreams and make the big step into independence.
- The Canadian government offers a number of programs exclusively for first-time home buyers. If you know how and where to access this info, you will find there is something here to assist you.
- There are three more popular first time home buyer programs supported by the Canadian government. Below you will learn more about them.
- In fact, the Home Buyer’s Plan (HBP) offers you a great opportunity to use your RRSP contribution for the down payment. It presupposes that a first-time home buyer can withdraw up to $25,000 from their retirement account. ($25,000 per spouse, $50,000 in total) Of course, there are some restrictions to the withdrawal process. You can access the contribution only if it was deposited a minimum of 90 days prior. Otherwise, you will have to wait for the 90 day period to pass if this is your only source of downpayment.
- There is another attractive and helpful initiative from the government which is called Energy Efficient Housing, (EEH). Everyone, who enjoys the beauty of Canada’s nature and also cares about its preservation, will appreciate this one. It is the perfect opportunity to save money on one hand. On the other, you will have access to “green” monies to buy your home. What’s more, you will join the ever-growing community of eco-friendly homes.
- Specifically created for those who have not owned a house before, you can receive special credits from the government of Canada. The program is called First-Time Homebuyer’s Tax Credit. The amount of credit is $5,000. It is multiplied by the lowest federal income tax rate for the year which you are implementing it.
Tips that you as a first time home buyer should know
Imagine yourself in your first home, it is cozy; it’s the place where you can rest & unwind after a hectic day at work. Now, pause for a moment & think about the steps you need to take to achieve this dream.
- First of all, concentrate and gather as much information as possible about the real estate in your area. Nowadays, it’s the Internet era, and there should be no problem accessing several reliable sources to get you on your way.
- Find a real Realtor you are comfortable with, and who understands your preferences and will represent only your best interests. It is crucial to have such a Realtor in place. They will represent “your” best interests in all situations related to your new home purchase.
- The home you choose should fit within your budget and the lender guidelines will assure you do not exceed that.
- If you want to participate in any credit program to assist you in your purchase, make sure you are eligible to participate. Also, get a pre-approval for your mortgage thru a mortgage broker.
- Both your Realtor and mortgage broker should be able to map out your ongoing monthly mortgage obligations in advance. This is good to know so you can set your overall budget for a comfortable lifestyle.
What is homeowner’s insurance for?
You have now fulfilled your dream of home ownership. Now is the time to put measures in place to protect your investment. Homeowner’s insurance is the tool that protects your new property from the unexpected. There are a lot of companies that offer homeowner’s insurance providing different ranges of coverage and other supplementary services. One of the most key benefits of this insurance is that all your belongings are covered. Now, in a worst case scenario such as flood or fire, you are covered.
What a real estate agent is entitled to
The first thing you need to remember when you enlist the services of a Realtor. This person is basically your partner until you close the deal and everything is finalized. While you are looking for the right home, sign all the documents and, finally, close the deal, you are allies. From start to finish your real estate agent is your front and center representative in the real estate arena. In turn, the following is a list of what a real estate agent may be entitled to after closing the deal;
- Fee of 3.5% on the first $100,000 and 1.5% on the balance of sale price
- 5% GST on top of the fee
- NOTE: These fees are generally paid by the seller. There are no set or fixed fees on real estate transactions. Fees are negotiable.
Real estate development in Canada
More and more people are coming to Canada, and Calgary in particular, to reside. Such a wave of new-comers is easily explained by the comfortable environment for business and lifestyle. The government of Canada actively supports real estate development initiatives. It elaborates on new programs for first-time home buyers. Thus, creating opportunities for those who want to acquire home ownership. Another element to factor in is the stable real estate market and constant economy of Canada. All this adds up to a general depiction of why so many people are looking at Calgary to call home.
Government assistance for first-time home buyers
The positive real estate climate in the country supports the governmental bodies to not only attend to the needs of its citizens. It also strengthens the country’s economic engine via real estate. The most popular first-time home buyer programs initiated by the government of Canada are listed and described in one of the passages above. All in all, these programs show that the government is constantly working on behalf of its citizen to create versatile opportunities which include real estate investment.
Canada’s federal housing agency
The primary responsibility of this government body is housing. It has a history of more than 70 years in assisting Canadians with their real estate pursuits. This institution offers advice, analysis, and research on Canada’s real estate market. It greatly contributes to the employment of many government workers thru-out Canada. Canada’s federal housing agency helps Canadians acquire new homes and create prosperous communities to enjoy living in. Such government initiatives will only continue to develop and promote the real estate industry in all regions.