Many are the times I meet Canadians who wish they knew a bit more about the mortgage process before they bought their first homes and knew more about Canadian mortgage rates. The prospect of owning a home for the first time home buyers is extremely exciting, but can easily get engulfed in emotions and forget important considerations. If you are new to Canada and your goal is to have a place of your own, you probably are yet to understand the market fully. Do not worry-I am here to help you make the necessary preparations.
How much can you borrow?
Before you even consider going to search for a home, you should have an idea of your loan limit. Only then will you be able to have a realistic search for a house. Mortgage calculators can prove an invaluable tool, at CompareMyRates.ca we provide a full range of mortgage calculators to assist you make better, informed decisions in getting the best Canadian mortgage rates.
To buy a home in Canada, you will need a down payment of 5% or more. Making a higher payment is better for you because this means that your regular payments will reduce. Make a down payment of at least 20% and see if you qualify for a conventional loan. This will save some good money from your mortgage insurance.
Prepare For Other Costs
As a first time home buyer, you need to know that apart from the down payment, there are other costs. It is good to know about these financial obligations beforehand to avoid stressful experiences. Here are some of the costs that most Canadians incur during their first home purchase:
- Legal fees
- Closing costs
- Land transfer tax
- Commission or real estate agent
- Property tax
- Homeowners insurance
- Home inspection
- Mortgage life insurance
- Appraisal fees
- Among others
Are you ready to purchase the home? If so, your next step is to look for mortgage preapproval. This is what you gain from the preapproval:
- Helps you know the amount of loan you can get for your desired home
- You will know the interest rate
- You will be better placed to make an offer
- It is the best indication that the lender is committed to give you the home loan
Shop Around for the Best Canadian Mortgage Rates
Finding a home in Canada is not as easy as it may sound. However, if you are able to narrow your search, you can get a good house even within a day. Therefore, it is upon you to ask a few questions that will take you to what you want. Are you looking for a condominium, a house or a townhouse? A qualified real estate agent can help as the options are too many and can easily get overwhelmed.
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Write The Offer
This is probably the scariest part for you, but it does not have to be so. First, you do not have to draft the document-your lawyer or real estate agent can help you. Second, you can always make a counter offer if the original offer is rejected. Canada has many qualified and experienced mortgage brokers in your area to provide you expert advice and great mortgage rates. Start by comparing the best canadian mortgage rates at CompareMyRates.ca.