20 Jan 5 Essential Steps for First-Time Home Buyers
First of all, congratulations on taking some of the first steps down the path of homeownership
If you are considering owning in Guelph, even better! Owning a home of your own is a big step and its exciting too! As exciting as this step is though, for many a first-time home buyer, the process may feel overwhelming. In addition to feeling overwhelmed, if you are a millennial, you may wonder if it will ever actually become a reality for you. The housing market is hot, and Guelph is no exception, but homeownership may well be within your grasp.
Check out the tips we’ve compiled to help you get started!
- Explore the government-funded incentives/refunds: The federal and provincial governments are aware of the difficulty for many young Canadians to enter the housing market. To address these issues, they offer different incentives. One example is the new First-Time Home Buyer Incentive, which started in September 2019. This incentive is designed to help first time home buyers reduce their monthly mortgage costs without increasing the amount needed for a down payment. Overall, this program could be of great assistance to many first-time home buyers. To learn more about the program and your eligibility click here. A second provision from the provincial government is the Land Transfer Tax Refunds for First-Time Homebuyers. This program is designed to off-set or completely eliminate the land transfer tax for first time home buyers that are attached to every purchase of land or interest in land in Ontario. To learn more about this program and your eligibility, click here.
- Get pre-approved for a mortgage: Meeting with a mortgage broker or lender and getting pre-approved for a mortgage is where serious buyers start. This helps you set a true budget and also gives you an edge during negotiations. Serious first-time homebuyers get their finances in order before they start seriously shopping.
- Decide ahead of time what are true needs vs. wants: Remember, this is just the start of your real estate journey. You may not be able to check every box off your ‘dream home’ list, but you will be in the market and have a place that is truly yours.
- Count the costs: Many first-time buyers are unaware of the full gamut of closing costs which are part of any real estate transaction. First-time buyers may even underestimate the cost to decorate or furnish their first home and may forget to add these essential costs to their budget.
- Hire a trusted Realtor: The advantages of having buyer representation are endless for any transaction, but especially your first. The DiLoreto team can expertly navigate you through each step of the process, including the items listed above, to make sure that your first real estate transaction is one you enjoy!