As your personal guide and trustworthy agent, I strive to give you the best of the best. In the years that I’ve spent in the industry, homebuyers have always asked me “What do I need to do when I buy a house?”. I’ve composed a step-by-step guide that organizes the buying process to make buying a house simple and fun!
Step 1: Decide to Buy
Before you even go looking for a home, you have to understand your needs. Think about the type of place you’re looking for. Are you looking for a lot of bedrooms and washrooms for your family? Do you want a pool in the backyard? Do you want to live close to a school or a mall? These are just some of the things you have to consider before start looking for a new home.
You also have to familiarize yourself with different types of ownership as well to help narrow down the perfect home. Freehold is when it’s all yours, a condo is when you take care of the inside and pay your fees to an association, and co-op is similar to a condo but you rent a unit in the building and pay maintenance and repair fees.
Once you have narrowed down some qualities, its time to go looking for a home!
Step 2: Hire an Agent
There are thousands of real estate agents how do you chose one that’s right for you?
You have to pick carefully. They will be acting as your representative and you will need someone to look out for your best interests. You will need someone that you can trust and someone who understands what you want.
There are a few ways to look for your perfect Realtor, such as:
Jot down some names and numbers that you find on “For Sale” signs
Ask friends and family for a recommendation
Visit one of the local offices in your area
They have to be a trained professional who knows your area inside out. A great agent is someone who offers you quality services to help you accomplish your goal.
Step 3: Find your Home
There are many ways of finding that dream home! First, before you go shopping you have to make sure you are also financially ready. Make sure to have a budget when you go shopping. You can use my very handy affordability calculator by clicking here.
One thing to keep in mind is your down payments. This is a percentage of the total cost of a home that you’ll need to pay. The more money you put down, the more you’ll save on monthly payments and cost of borrowing. Another important aspect is getting pre-approved for a mortgage. When the lender approves you for a mortgage, it gives you an idea of how much you can afford to buy your new house.
Keeping these things in mind, you are free to go window shopping! You can go searching for houses according to the different neighbourhood surrounding you, check newspaper listings, websites, or even drop by any open houses that are being held in your area. Looking for houses can be really fun and exciting! You can browse listings using the smart listings search on my website, here.
Step 4: Make an Offer Now
Now that you’ve found the house that you are set on, it’s time to make an offer. Not all offers are the same and here’s where your real estate agent comes in. They will help you with specific terms and conditions that will be specified in the offer like the price you want to pay, financing conditions, or other things like inclusions and exclusions.
Not only is it about the price of the house but you have to carefully look at the other details included in this sale. Appliances, chandeliers, or even minor renovations can also be part of the deal. Shorter or longer closing dates can also be specified in the offer.
If there is something in the offer that doesn’t satisfy the seller, counter offers or negotiations can also be presented to help get a price that you think is fair.
Step 5: Close the Sale
There will be closing costs associated with the sale that need to be paid either by or on the closing date. It can include mortgage application fees, inspections, and legal fees. But once that’s taken care of, you get your new house.
Congrats, welcome to your new home! You’re all ready to move in!
First Time Homebuyers Tax Free Home Savings Account (FHSA)
The FHSA would allow first-time homebuyers to save up to $40,000 with contributions capped at $8,000 per year. Any investment growth within the account is also tax-free.
It may not make homes more affordable but it will help borrowers get into the market faster and lower the cost of borrowing for many.
Unlike the HBP, borrowers will not need to pay the FHSA back. Money can also be transferred out of the FHSA into an RRSP or TFSA if the individual decides not to purchase a home.
It may not help buyers get into pricey markets like Toronto or Burlington but it will certainly help those get into more affordable cities like Hamilton, Calgary, Halifax, Kingston, London, Belleville, Guelph and Peterborough.
Opportunities:
Assisting Canadians to save and set themselves up for homebuying.
First-time home buyers will be able to save faster – tax-free on the way in and can earn investment earnings on the money.
Sizable savings for higher-tax bracket earners
Ability to transfer those funds into an RRSP or RRIF if you don’t buy, using the FHSA as an additional pre-tax investment instrument.
Doubling First Time Home Buyers Tax Credit to $10,000
The Government will double the home buyers’ tax credit amount to $10,000, which would provide up to $1,500 in tax relief to eligible homebuyers.
This is a non-refundable credit that will come into effect for homes purchases on or after January 1, 2022, that will reduce the amount of taxes you owe by $1500, up from $750. Spouses or common-law partners can also split the credit if they choose to.
Opportunities:
Tax help for first-time homebuyers who are already grappling with all of the new expenses of homeownership in their first year.
Home Accessibility Tax Credit Up To $20,000
An increase to the annual limit of the home accessibility tax credit to $20,000 up from $10,000 starting in 2022. `
This includes renovating a qualifying principal residence or co-op home that will allow the individual to gain access to, or to be mobile or function within the dwelling, and to reduce the risk of harm.
Opportunities:
Support for seniors by assisting homeowners with aging in place.
Improve housing to meet the needs of an aging population.
New Multi-Generational Tax Credit
Starting in 2023, a refundable renovation tax credit would be made available for eligible expenses when creating a secondary dwelling unit to allow a senior or a person with a disability to live with a qualifying relative.
This would include any work or goods that were paid for or performed on or after January 1, 2023. The credit value would be the lesser of 15% of the eligible expenses or 15% of $50,000.
The second unit can be located inside the property or inside a garage, above a laneway or in a coach house.
Opportunities:
Provide independent living for a family member and bring families closer together
Option to make extra money to pay off the mortgage
More homes will be freed up for young borrowers to purchase.
Provide first-time homebuyers with another option – live with parents and inherit the family home.
