So what are some of the advantages of becoming a homeowner today?

• Home ownership is the single largest source of savings for Canadian households.

• Your payments build equity (as opposed to renting, where your money goes to the building owner).

• Homeowners can use the equity in their homes as security for other loans.

• Buying a home and building equity is the first step on the property ladder. It gets you into the housing market, keeps you in touch with increasing house prices, and puts you in a good position to trade up to bigger and better homes as your circumstances allow.

Tips and Tricks for First Time Home Buyers

Tips and Tricks for First Time Home Buyers

Figuring out how much home you can afford, hiring the right buyers agent and being ready to negotiate are a few ways to make the process less stressful.

1.  Start saving for a down payment early

Some tips for saving for a down payment include setting aside tax refunds and work bonuses, setting up an automatic savings plan and using an app to track your progress.  The downpayment may also be gifted from family.

2.  Determine how much home you can afford

Before you start looking for your dream home, you need to know what’s actually within your price range.

3. Check your credit

When you’re taking out a mortgage loan, your credit will be one of the key factors in whether you’re approved, and it will help determine your interest rate and possibly the loan terms.

4.  Budget for closing costs

In addition to saving for a down payment, you’ll need to budget for the money required to close your mortgage, which can be significant. Closing costs generally run between 2% and 3% of your loan amount

5.  Consider what type of property to buy

6.  Research mortgage options and compare mortgage rates

Many homebuyers get a rate quote from only one lender, but this often leaves money on the table. 

Speak to a Mortgage Savvy agent to review all your options.

7.  Get a Pre-Approval Letter

You can get prequalified, which simply gives you an estimate of how much a lender may be willing to lend based on your income and debts. But as you get closer to buying a home, it’s smart to get a preapproval, where the lender thoroughly examines your finances and confirms in writing how much it’s willing to lend you and at what terms. Having a preapproval letter in hand makes you look much more serious to a seller and can give you an upper hand over buyers who haven’t taken this step.

8.  Hire the right buyer agent

The right buyers agent should be highly skilled, motivated and knowledgeable about the area.