Yes, you probably do. Purchasing your first home is no simple task, and it’s in your best interest to have an expert in your corner who can help you every step of the way.
I help first time home buyers fulfill the dream of owning a home.. When making the biggest financial decision of your life it is important to have someone you trust guiding you along the way, to represent your best interest and negotiate best deal possible for you. I have a wealth of knowledge about the current market, skilled negotiator and will ensure I'm finding you the best property to meet your needs. I be there to provide an objective opinion when you need it, and ultimately will be able to make the process a lot less stressful for you.
Should I get pre-approved?
Simple answer YES!!Getting pre-approved for a mortgage can save you a lot of trouble. It will help you know right off the bat how expensive of a home you can afford. Having a pre-approved mortgage will also allow you to show any prospective buyers that you’re serious about buying a home — giving you a potential edge if something like a bidding war crops up.
In Canada, the minimum down payment someone must be able to make is calculated as a percentage of the home’s purchase price. Depending on how much that house costs, the minimum down payment amounts vary.
For a home’s purchase price below $500,000, the minimum down payment is 5%.
For the portion of a home’s purchase price from $500,000 to $999,999, the minimum down payment is 10%. For homes valued $1 million +, the minimum down payment must be 20%.
The 20% rule is based on the CMHC rule that any mortgage taken out by someone with a down payment that’s less than 20% of their purchase price will be required to insure their mortgage with CMHC. These are called insured mortgages, and like all insurance policies, it comes with premiums. These premiums are a percentage of your home’s purchase price, but that percentage is determined by the size of your down payment. Typically, it’ll only be 1.80% - 3.60%, but that still adds thousands of dollars to the cost of your home. Use the CMHC calculator to determine your premium.
For example on sale price of 500,000.00, land trasfer tax would be $2475.00 for qualified first time home buyers. $6475 for those who do not qualified as first time home buyers.
Don’t forget all these other little costs
Legal fees and related expenses $1000-$2000
Appraisal fees $300-$500
Title insurance $250-$350
Property tax and utility adjustments