Buying a house is the biggest purchase of your life. And, even the slightest mistake during the process
can cost a fortune. But don’t worry! Our house-buying battle plan can help you get everything right when
buying your first property.
At the moment, Canada’s consistently increasing housing prices can make you worry that
finding your dream home is, well… just a dream. For this reason, buying a house still remains a
major long-term investment for Canadians. But despite homes becoming increasingly
expensive, the homeownership rate in the country is expected to grow to 64% by the end of
2021. That’s because buying a home in Canada can be expensive but not impossible.
That being said, buying a home is a significant investment. So, you need to get everything right
to ensure that no bad decision will cost you a fortune later. This article explores the essential
tips every first-time homebuyer should know to make the right decisions and survive the
daunting process of purchasing a house.
Do the math
First things first, when you’re buying a property for the first time, you need to start with a
financial checkup. While the money talk may not be the funniest part of becoming a
homeowner, it’s the essential one.
Unless you’ve recently won the lottery or have some wealthy relatives willing to financially
support your dream of becoming a homeowner, you’re going to need a home loan like most
According to the Canadian Real Estate Association, the average home price in Canada was
$542,484 in 2020. Needless to say, no one will simply hand you over hundreds of thousands of
dollars without ensuring that you can pay them back because that’s simply how loans work. So,
it’s important to check whether or not you are financially ready to get a loan. Check your credit
scores and reports, make sure you have a sufficient income stream, and ensure that you have a
clean history of regular paychecks.
This way, you’ll find out just how much lenders are willing to give you and how much you can
afford to pay for the property you buy.
Another financing option you need to know about and consider once you become a
homeowner is getting a home equity loan. If you need to remodel the property you buy, such a
loan can give you the larger amount of money you need for investing in renovating the
Use a trusted realtor
Once you know how much lenders are willing to give you, you’ll have a clear idea of what your
budget is. It simply makes no sense to waste time looking at properties that cost $400,000
when you can only afford to pay $150,000 for your property.
Now, with a clear budget in mind, it is time to work with a professional realtor to find the
perfect property that checks all your boxes and your budget.
Sure, the realtors get a cut of a house’s sale price, but it’s not you who will be paying the
commission. The seller will. So, why not use a professional who knows the market and can help
you find your dream home a lot faster?
A professional realtor will understand your needs and budget and will narrow down the search
for properties based on what you’re looking for.
Consider the critical property features
You’re probably wondering what you should be looking for when visiting different properties.
Well, there is no easy answer for this one. In fact, the right answer is probably “it depends”; On
what? On your personal preferences and needs.
There are plenty of essential features of a property that you should pay attention to when
visiting a property, such as its location, the size, the age of the property, how it was maintained
throughout the years, and the layout of the rooms.
All these features matter when you connect them to your personal needs and expectations for
Know your home needs
When you start going to property showings, make sure that you have a clear idea of what your
needs as a homeowner are.
For example, if you purchase the property for yourself and your family, you may be looking for
a bigger house. On the flip side, if you’re planning to live alone there, investing in a 5-room
place simply doesn’t make any sense.
Or, if you don’t want to waste a lot of time and money commuting to work, it would be best to
look for a property close to your workplace. In contrast, if you’re a freelancer and working from
home, the house’s location doesn’t really matter that much unless you specifically want it to be
close to various services like malls, restaurants, schools, or anything similar to this.
Buy for the future life as well
One of the common mistakes that first-time homebuyers make is not taking into consideration
the life they will have in the future. One essential thing to keep in mind is the fact that a house
is a long-term investment. If there’s no sudden change in your life in the next few years, you’ll
probably be going to live a great deal of your lifetime in the same property. So, when buying a
house, also consider the needs that you may have in the future.
For example, maybe right now, it’s just you and your partner, and you don’t need a big
property. Yet, if you’re planning to start a family in the near future, make sure the house is big
enough to host your future family.
Inspect the property thoughtfully
A must-do when purchasing a property is to inspect it thoughtfully before sealing the deal.
Properties, especially old ones, but this can be the case with new houses too, can hide a lot of
problems such as mould, foundation problems, asbestos, damaged roofs, toxic materials used
in construction, or major plumbing problems. All these hidden issues can cost a fortune to be
fixed. Not to mention that they can give you a lot of headaches.
So, make sure that you have the property inspected by a professional to ensure there’s no
“surprise; for the future.
DISCLAIMER: This is a sponsored post and doesn’t represent the views of the author or the publication.