Tips for first time buyers

1. Get pre-approved for a mortgage
   Knowing what you will be able to afford will give you an advantage as you begin your search for a new home. You will be armed with knowledge of the maximum mortgage you qualify for, the interest rate, and, the monthly payments. It may also place you in a advantageous position when you make an offer because the vendor knows you are a serious buyer.
2. Establish your price range
   With your pre-approval in hand you can start to determine what price range you are comfortable with. You must establish what down payment you have, and, what monthly payment can you afford. You will find calculators elsewhere on our site that can assist you in answering these questions. In ñhelpful linksî, you can connect to the CMHC website that provides great assistance in establishing a budget.
3. Determine your down-payment
   It is now possible to purchase a home with no money down. It is important to know that any down payment of less than 20% of the purchase will require mortgage loan insurance from CMHC, Genworth, or, AIG. The insurance premium is added onto the mortgage.
4. Select a Realtor
   A professional realtor who has a strong knowledge of the neighbourhood you are interested in, will be an invaluable asset to you. In addition to provide professional advice, the realtor will be able to refer you to other professionals you will require for your purchase.
5. Canadian Home Buyers plan
   The Government of Canada allows you and your spouse to withdraw up to $20,000 from your RRSP to help finance your first home purchase. If you repay the withdrawn funds within 15 years, it will not be considered taxable income. See complete details of the plan on the website by clicking on the link you will find on the Helpful Links page.
6. Budget for all the costs
   In addition to the mortgage, you should be aware of additional costs that may occur. Below you will find examples of common expenses that may be applicable for your move.
   • Legal fees
   • GST(on new construction)
   • Home inspection
   • Appraisal
   • Property Survey
   • Title insurance
   • Home/Fire insurance
   • Property Transfer Tax
     (exemptions for first time buyers, see link on "Helpful Links" page)