In Canada, millennials, particularly immigrants from South-east Asia, are taking the plunge and buying homes because they understand that it is one of the best yet most significant long-term investments they can make. The process might be confusing, and you might not know where to start, whether you’re buying a house, a condo, or a townhouse.
Therefore, G.S. Mann, one of the most reputable mortgage brokers Calgary NE, has provided a step-by-step guide on how to buy your first home in Canada, particularly Calgary. Buckle up and continue reading to learn all you need to do to buy your dream house without any trouble.
Step 1: Put money aside for the down payment
Gathering funds for a down payment should be your first priority before you start browsing for real estate. A “down payment” is the sum of money you put toward a home purchase. You might be curious about how much I need to set aside. The purchasing price of the home determines the minimum amount. In Canada, a down payment typically ranges from 5% to 20% of the purchase price. You will thus need to start saving at a young age.
Step 2: Organize your finances
Make sure your funds are in order before looking at real estate listings. By following these steps, you can organize the crucial documentation needed to support a mortgage application and determine how much you can afford to spend on a purchase.
Step 3: Arrange and Organize your documents
A lender will take into account three things before approving your mortgage: your current assets (what you now own), your income, and the total amount of debt you currently owe.
During the application process, your mortgage lender may want the following information from you:
- Government-issued photo identification (driver’s license, passport, etc.)
- A down payment receipt;
- Income and employment documentation
- Where it will originate
- Financial obligations (such as spousal or child support obligations) or debts (e.g. credit card balances, auto loans or leases, lines of credit, college loans)
A house-hunting tip that will prevent you from scrambling at the last minute to put your affairs in order is to have these documents on hand.
Step 4: Engage a skilled mortgage broker
Professional mortgage brokers Calgary NE are linked to a professional network of inspectors, insurance agents, and other experts who might join your team. They also have an in-depth understanding of every step of the process, which may lessen stress.
Step 5: Obtain a Mortgage Pre-Approval
Finding out how much you can spend is the next step after organizing your finances. Use a mortgage calculator to enter the amount of your down payment, your amortization (repayment) schedule, the ultimate selling price, and other factors into your budget.
Step 6: start looking out for and buying a house
With the help of your mortgage broker make a deal and step into your dream house.
For anybody, buying a first home may be a challenging process. Before you can begin shopping for your dream home, you’ll need to organize your finances, identify and take advantage of savings possibilities, get pre-approved for a mortgage, and work with mortgage brokers Calgary NE, lawyers, and other professionals.