| 1. Don't Buy if You Can't Commit. | | | | will have your best interests at heart and can help |
| If you can't see yourself staying in one location for a | | | | you with the negotiation process. |
| few years, it's time to reconsider buying a home. | | | | 7. Choose Carefully Between a Fixed or Variable Rate |
| Buying and selling GTA real estate quickly isn't cheap, | | | | Mortgage. |
| and will probably devour any profits your property | | | | When picking a mortgage interest rate, you usually |
| has built up. Perhaps renting will better suit your | | | | have 2 options. A permanent fixed interest rate |
| lifestyle, at least for now. | | | | never fluctuates, and will remain the same regardless |
| 2. Put Your Best Foot Forward. Check Your Credit. | | | | of the current economic situation. Choose this option |
| Since you'll probably need to get a mortgage to buy | | | | if you want to play it safe. If you're a bit of a |
| a house, ensure your credit history is squeaky clean. | | | | risk-taker (and promise to keep a close eye on |
| A few months prior to house hunting, get copies of | | | | interest rates throughout the year) a variable rate |
| your credit report. Make sure the facts are correct, | | | | can help you save. If the current interest rate is low, |
| and fix any problems you notice. | | | | and it looks like it may drop even further, variable |
| 3. Get in Touch with Reality. | | | | could be the way to go. Most variable rate |
| Generally, you can afford to buy GTA homes for | | | | mortgages will allow you to lock into a rate within the |
| sale that run about 2.5 times your annual salary. Bear | | | | first 3 years of the term to help you secure a |
| in mind that you still have to factor in how your | | | | comfortable rate. |
| income, debts, and expenses will affect what your | | | | 8. Get Approved Before House Hunting. |
| budget will be. Maybe condos for sale in Mississauga | | | | Getting pre-approved on a mortgage will save you |
| will better suit your budget than detached homes in | | | | the hassle of looking at properties you can't afford. |
| Oakville. Do your research first. | | | | You'll also be in a better position to make a serious |
| 4. Can't Put Down the Standard 20%? Don't Worry. | | | | offer when you do find the right house. Not to be |
| CHMC (Canada Mortgage and Housing Corporation) | | | | confused with pre-qualification, which is based on a |
| provides mortgage loan insurance to help lenders | | | | quick review of your finances, pre-approval from a |
| (banks, mortgage brokers, etc.) offer mortgages at | | | | lender is based on your actual income, debt and |
| the lowest possible rates. This enables new home | | | | credit history. |
| buyers to realize their dreams of homeownership | | | | 9. Do Your Homework Before Placing an Offer. |
| with as little as 5% down. All you have to do is apply | | | | Your opening offer should be based on the sales |
| and qualify. | | | | trends of similar homes in the neighborhood. Consider |
| 5. Look for First-Rate Schools in Your Neighbourhood. | | | | sales of similar homes in the last three months, |
| Even if you don't have any school-age children (or | | | | before you proceed. If homes have recently sold at |
| any at all), buying a home around great schools can | | | | 5% less than the asking price, you should make an |
| pay dividends. When it comes time to sell, you'll learn | | | | offer that's about 8-10% lower than what the seller |
| that excellent schools in your neighbourhood are a | | | | is asking. |
| priority for buyers, and it will increase the | | | | 10. Hire a Home Inspector. |
| attractiveness and property value of your home. | | | | Almost all offers to buy are conditional on a home |
| 6. Leave it to the Professionals. | | | | inspection. This ensures you're not buying into |
| Even though the Internet provides buyers with easy | | | | someone else's problems. You should hire your own |
| access to local home listings, most new buyers are | | | | home inspector with experience in doing home |
| better off using a professional real estate agent. | | | | surveys in the area where you are buying. Their job |
| With all the negotiations, legalities and house hunting | | | | will be to point out potential problems that could |
| involved, you'll need someone to coordinate it all. | | | | require costly repairs down the road. A little money |
| Look for an exclusive buyer agent, if possible, who | | | | spent here can save you substantially in the long run. |