Thinking About Buying ?

PLAN YOUR BUDGET:

Contact your Mortgage Broker and get your funds pre-approved and guaranteed for a specific period of time and rate.  Now you know what your mortgage costs will be and you can proceed looking for the home in a price range that meets your comfort level.

Gross Debt Service Ratio:  The percentage of gross income required to cover monthly payments associated with housing costs. Most lenders recommend that the GDS ratio be no more than 32% of your gross (before tax) monthly income.

Total Debt Service Ratio:  The percentage of gross income needed to cover monthly payments for housing and all other debts and financing obligations. The total should generally not exceed 37% of gross monthly income.

CMHC FEES:

When you require a mortgage for more than 80% of the Purchase Price, that mortgage must be insured by Canada Mortgage and Housing.  The premium charged decreases as the down payment increases so obviously it is to your benefit to have access to as much of a down payment as possible.

DO YOUR HOMEWORK:

Spend some time on realtor.ca, take a look at what features are available in your price range so you know what will be important to you.  Go through Public Open Houses...there is nothing like seeing a home in person to get a feel for size and space.

START THE PROCESS:

Decide what features are "Must Haves" and what are "Would Like".  Start working closely with your Realtor® to receive new listings by email and if anything looks interesting ask your Realtor® to preview it for you.

MAKE APPOINTMENTS TO SEE HOMES OF INTEREST:

Ask your Realtor® to make appointments for homes that interest you.  Make notes about the features that you like so you will have a point of reference when you are deciding to proceed with an offer.

BE PREPARED:

Now that you have found a house that interests you, your Realtor® will be preparing an Agreement of Purchase and Sale.  At the least, you will want to have conditions for Financing and Home Inspection.  Put everything in writing, do not take any verbal promises from the Seller or the Seller's Agent.

CONDITIONS HAVE BEEN MET:

After you have completed your Home Inspection and your Mortgage Broker has confirmed your funds you will be able to remove the Conditions on the Agreement of Purchase and Sale.  You own your new home. Book your Movers and call your Lawyer.

CONGRATULATIONS !