Owning your first home is a big step, and it’s one you’ll want to be prepared for — every step of the way. If you’re a Gen Zer ready to start your home-buying journey, here’s what you should know before you get started.
Know your budget
Having your finances in order (including having sizable savings for a down payment) is the first step in your home search. You’ll need to have documentation to be pre-approved for a mortgage, including proof of employment, your assets and your debt. Once you know the maximum mortgage you can qualify for, you can begin your home search.
Take advantage of financial benefits
There are certain government benefits and credits to be aware of that can help you buy your first home. There’s the tax-free First Home Savings Account (FHSA), the Home Buyers’ Plan (HBP) that allows you to withdraw up to $35,000 from your RRSP to purchase property, and the GST/HST new housing rebate.
Work with a trusted agent
You’ll want to work with someone you trust when searching for your first home. Agents not only have access to properties that aren’t on the market, but they can help you find properties in your price range. They can also put you in touch with a good mortgage broker for your mortgage pre-approval and will walk you through the process from search to sale.
Consider the neighbourhood
Location is important when you put down roots. Factor in commuting time if your work isn’t remote, and think about the community. Does the neighbourhood have the amenities you’re looking for, such as shops, recreational facilities, restaurants, green space, access to transportation, and even nearby healthcare? Know your priorities and spend some time exploring where you think you want to live before you commit.
Think outside the box
The market — especially in Toronto — can still be difficult to break into. People have been getting creative in order to own property, including co-ownership with friends or family and opting for more suburban or rural areas. Be flexible with the types of properties you’re open to viewing as well, such as condominiums and townhomes in addition to semi-detached and detached homes.
Interested in learning more about purchasing your first home? Contact us today, we’re ready to help!
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