?Have Your Dream Of Home Ownership Come True
While house hunting may seem exciting, it’s important to get your financial house in order before buying your first home. Many first-time home buyers make the mistake of thinking the cost of home ownership is simply limited to their monthly mortgage payment and forget to factor in expenses like property taxes, home maintenance and utility costs.
Meridian, Ontario’s largest credit union, offers the following tips for first-time homebuyers:
Get pre-approved: Work with a trusted mortgage specialist to obtain a mortgage pre-approval. A pre-approval will provide you with the peace of mind of knowing that you’re qualified for a mortgage, but most importantly it gives you a benchmark to gauge what types of homes you can realistically afford.
Calculate your initial costs: Besides your down payment, you have to factor in closing costs, moving costs, lawyer fees and taxes. So you aren’t surprised later, the general rule of thumb is to add two per cent of the total purchase price to cover closing costs.
Know your options: It’s important to know that a first-time home buyer includes anyone who has not owned a home in the past seven years. The Canadian government is currently offering a First-Time Home Buyer Tax Credit, up to $750, which you can later put towards a mortgage payment. Also, the Canada Revenue Agency Home Buyers’ Plan allows first-time home buyers to borrow up to $25,000 each from their Registered Retirement Savings Plans tax-free to fund their purchase as long as the money is paid back over 15 years.
Whether you’re in the market for a new mortgage or looking to renew, switch or refinance your existing mortgage, Meridian’s mortgage specialists makes it convenient and simple. For more information, visit www.meridiancu.ca