1: Is home ownership right for you?
-Consider the pros and cons of rental accommodation vs. owning your own property.
-Is your lifestyle fluid or are you committed to living in one place?
-The cost of rent and associated bills vs. mortgage, taxes, maintenance and related bills.
-Ever increasing rental expense vs. increasing property values over time.
-Are you committed to the responsibility of buying a home?
2: Do you have the financial ability to buy a home?
-Can you afford to pay your expenses and enjoy your life as well?
-Examine your TDS and GDS ratios to see what you can afford to pay each month.
-The Total Debt Service ratio is 40% of your gross income.
-The Gross Debt Service ratio is 32% of your gross income.
-These ratios include mortgage payments, heating costs, taxes and any other debt payments.
-These ratios do not determine your mortgage but how big your monthly payments can be.
-The dollar value you can buy is determined by your down payment and mortgage amounts.
-The minimum down payment is 5% of the purchase price.
-Take a look at my financing page for more details.
3: What is your perfect home?
-What style of housing fits your needs?
-See my buyers guide.
-Choices include semis, towns, single detached, multistorey and bungalow.
-Features such as number of bedrooms, baths, garage, lot size, AC, green design, etc,?
-Freehold or Condominium, or other ownership options?
-Neighbourhoods: you should consider a few that you’d like to live in.
-Schooling needs: primary, secondary, college or university.
-Schools ranking: Kitchener Waterloo Schools
-Lifestyle, such as closeness to amenities, transportation or nature.
–New construction vs. resale.
4: Finding your home
-Work with a Realtor; I am your best choice!
-I will find you homes that meet your expectations.
-The search process gathers information from many sources: MLS system, industry publications, newspapers, word of mouth, other agents, builders, online publications, for sale signs and For Sale By Owners.
-I will show you potential matches and point out the pros and cons of each.
-You’ll be offered advice as to purchasing, inspections and any other things that need attention.
-I will help you with mortgage needs such as pre-approval.
5: Buying your home
-I will establish a fair offer price.
-An agreement of purchase and sale will be completed and any necessary conditions added.
-The offer will be presented to the seller and if accepted you’ve just bought a home!
-If the offer is signed back, the objections will be carefully scrutinized and discussed with you.
-You may decide to forgo this purchase and look for another home, counter offer again or agree to the sign-back.
-A down payment is usually included with the offer.
-Once your purchase is made your Realtor will ensure that all the necessary steps are taken before closing, including financing, property insurance, property inspection, taxes, lawyers and title insurance.
6: Closing Day
-On closing day your lender will give the mortgage amount to your lawyer.
-You will provide the down payment, less the deposit, to your lawyer.
-You will pay any remaining closing costs.
-Your lawyer pays the seller, registers the home in your name, gives you the deed and the keys to your new home!
7: Home Ownership
-Ownership is a big commitment so consider the following points:
-Have a budget and stick to it.
-Make your monthly payment obligations.
-Keep a reserve fund for maintenance.
-Have a fund for emergencies.
-Maintain your home and landscaping.
-Pay down any debt you have as quickly as possible including your mortgage.
-Have a safe place for valuable documents.
-Make sure you have an escape plan, smoke and CO detectors, and a fire extinguisher.