Congratulations on your decision to buy Real Estate!
For a first-time home buyer, buying a home is one of the most exciting — and important — moments of your life. Your home is not just the roof over your head, where you live, eat, sleep, play, and raise a family. You may also be buying a cottage to spend your time at, vacant land to build your retirement home or dream cottage on, but either way it’s also one of the most important investments you’ll ever make.
Whether you are looking in Tobermory, Owen Sound or anywhere in-between, we can help!
RE/MAX believes that: “You can’t live in an RRSP.”
For most people, buying property is the single largest investment they will ever make, not just in their family’s lifestyle and comfort, but also in their financial future.
RE/MAX is here to help — but we want to do more than just help you buy a property; we want to teach you everything you need to know to buy your home, cottage, vacant land or commerical real estate in Tobermory, Lion’s Head, Wiarton, Owen Sound, Georgian Bluffs, Sauble Beach & Surrounding Areas!
Determining how much you can truly afford involves meeting with a mortgage representative at a financial institution. Most financial institutions, as well as Canadian Mortgage Housing Corporation, have online mortgage affordability calculators that allow you to plug in your basic numbers to see how much of a loan you might qualify for.
Consider these calculations an estimate — a mortgage representative will take your preliminary calculations and see if they hold up to further scrutiny. It’s important to be honest with yourself when you do your own financial review. If you underestimated your household expenses to make your financial picture look brighter than it actually is, your mortgage representative will probably expose a more realistic view.
The mortgage representative will then come up with some close-to-final numbers, presenting you with a preliminary figure for pre-approval. Now you should prepare a thorough and realistic checklist of your current household budget, say, if you’re renting an apartment and your expected budget in your prospective new home. You’d be surprised how some new items — such as additional insurance or costs for general repairs — can add to your expenditures as a homeowner. Make sure you take all of these items into consideration when calculating your mortgage affordability.
The importance of not overspending
Real estate experts cite overbuying as one of the most common mistakes first-time home buyers make. Whether they got caught up in a bidding war or fell in love with a home they just had to have, many people spend more on their new home than they can afford. Months later they may realize that their purchase has left them “house poor” with no money left to contribute to savings, other necessities, or even rainy day funds. This further underscores the need to be honest and realistic with your mortgage calculations, as well as the importance of getting pre-approved for a mortgage, since it can actually protect you from going overboard.
Costs of Home Ownership
From deposits to moving expenses, and everything in between, buying your first home involves more than just saving for a down payment. That may be the largest cost, but there are other things you’ll need to plan and budget for.
- The Deposit
- Down Payment
- Mortgage Loan Insurance (potentially)
- Land Transfer Tax
- Appraisal Fees
- Home Inspection
- Property Insurance
- Mortgage Life Insurance
- Legal Fees
- Title Insurance
- Moving Expenses & Service Connections
Now that your are Fit To Buy Real Estate, take a look at our Buyer’s Roadmap at your next steps!
Are you wondering how to choose your RE/MAX agent & gain access to MLS listings on the Bruce Peninsula? See our Buyer Services page to get started!
Whether you are looking to buy MLS in Tobermory, Owen Sound, Wiarton or anywhere in-between, let us help you! Call Today 519-596-2255.