Tips for buying that first home

For most Canadians, the purchase of their first house is a major milestone. It ‘s a chance to become a home owner. It’s also an important financial investment that likely means assuming a mortgage for the first time.

First-time buyers often have a wish list of features for their first home. Mortgages too have features, and putting together a wish list of mortgage options can save you money. It’s more than shopping around for the best interest rate.

To figure out your best mortgage options you should first consider the future needs for your family. Are you making a commitment for many years, or is this a temporary purchase that may change as your needs evolve? You also need to determine the amount you can pay as a down pay- ment and the amount of the monthly mortgage payments you can afford to make.

Put together a realistic budget, allowing for the additional expenses that you will make when you buy the house, such as closing fees and moving costs. And be sure to consider the ongoing expenses of home ownership, including annual property taxes, maintenance costs, as well as insurance costs, and leave a margin for possible increases in interest rates. Did you know that you can get a free copy of your credit report? Review your credit report well in advance to make sure it is accurate. Your mortgage lender will be reviewing your report before you are approved for your mortgage.

For more information, visit itpaystoknow.gc.ca. There you will find a mortgage payment calculator and qualifier, info on expenses to expect when you buy a house and monthly budgeting tools.