The First Time Home Buyer Guide

The most important step (and one that is often left until the last minute) is to see how much your bank is willing to lend you. This is the best way to determine what you can afford and what housing type will be the best choice for you. Banks will look at your TDS (total debt service) or GDS (gross debt service ratio) as well as your credit history to determine how much you’ll be able to get.

Knowing where your down payment is coming from and having money aside for your closing costs are VERY important. If you don’t have the money, where is it coming from? Will your parents be helping you? Will it be coming out of your RRSP? Do you have enough money to cover the land transfer tax and legal fees? You do not want to be caught off guard the week before you close on a home and find out you need $5,000 right away!

This is how you’ll be able to determine your needs and wants and really narrow your focus into the must haves and the absolutely nots? As a first time home buyer, you’ll likely have a wide range of what you would like, but narrowing it down so you don’t waste time or get frustrated is very important. If you absolutely want a two-car garage, why would you look at a house with only one?

It’s time to take your home buying relationship to the next level, and make a decision about who you want to work with. You’ll want to work with someone who truly understands what you are looking for and has a firm knowledge of the area that you would like to buy in. Getting referred by a friend or family has its advantages, but if you are buying a house in Port Credit then you shouldn’t be using someone who focuses in Ajax. That makes sense right?

Now that you have all of the important things taken care of, you’re ready to get out there and look at some homes. You’ve probably already been searching Realtor.ca like crazy looking at homes, but we recommend involving your real estate agent much more in the process. They’re able to navigate through the listings and provide you with information about the home, the area, whether or not it truly meets your needs, and even preview listings for you. Take your time to see some different options and communities, and when the right house comes along, you’ll know right away.

I always love this part. As a first time home buyer you’ll likely be a little bit nervous and have a lot of questions, but don’t worry, we can help guide you through the process and answer all of your questions. You’ll typically have a condition on financing and home inspection (unless you’re in a crazy bidding war), as well as a few other custom clauses that protect you. Some other items which you’ll have included in the Agreement of Purchase and sale are:

• Your purchase price
• Your deposit
• Your closing date
• Chattels included (fridge, stove , washer and dryer.

Pending you’re able to waive your conditions, you’ll have provided your deposit and are ready for closing. It can feel like an eternal waiting period but there are some things you want to be taking care of in this time, including:

• Organizing a moving truck
• Transferring your accounts to the new address
• Arranging for contractors/handyman
• Ordering Furniture (we think this is the BEST part)

Be prepared to meet your lawyer a few times in the week leading up to closing to sign off on the paperwork and provide them with the cheque for the closing funds.