Bigger down payments are better: Aim for 20% of the value of the home, don’t forget that you can use any RRSP funds you have towards the purchase; usually up to $25,000. Bigger down payments result in lower monthly mortgage payment.
Be mindful of closing costs: First time buyers can fail to factor in the costs of home inspection, legal fees, transfer taxes, paying for appraisal, interest adjustments, and insurance costs. All together these costs can total 1-5% percent of the overall costs.
The government will help, a little: The Government of Ontario recently doubled the first-time homebuyer’ maximum land transfer tax refund to $4,000. The increased rebate went into effect on January 1 of this year. If you’re buying a condo or home that costs less than $368,000, you won’t pay land transfer taxes.
Create a moving budget: Moving isn’t cheap. If you hire a moving company and are travelling long distances, it’ll cost you. Appliances, new furniture, renovation’s and repairs, even insurance rate changes are some of the potentially hidden costs of moving you should keep in mind.
Start with a condo: If you are like most people, you’ll want a slice of paradise and a detached home. And, like a lot of people in todays market, this will be too expensive for your reach. Buying a condo is one way that will help you build equity within a relatively short period of time to help enable you to upgrade and afford a small home. Progressively leapfrogging from one property to another is a great path to the home of your dreams.
Have you sold your home, and now can use an advance on your equity before closing day, perhaps you need money for renovations? Tembo Financial can help! Tembo offers this unique service to homeowners in Ontario and the GTA. You could receive your money in as little as 48 hours with no credit check and no appraisal* for expenses that matter to you. Don’t wait, start today!
*Subject to qualification.