For many young people, owning a home is a daunting and seemingly impossible achievement. With the housing market continuing to rise, things may not look so good for first time home buyers. Luckily for millennials, job prospects are improving and mortgage rates are at all time lows. There is hope for millennials who dream about owning their own home, so read on for some simple steps to get there.
The first step for first time buyers is to set a realistic expectation for your home. As you only have your savings to draw your down payment from, the price of home you can afford may be much smaller than established buyers. The best way to stay within budget is to shop within your means and do not tempt yourself with houses that are out of your price range. The second step is to make sure you actually have enough in your savings for a decent sized down payment. It is recommended that buyers make at least a 20% down payment on a new home, but this can be tough to achieve for some millennials. Even if you can’t make the 20%, pay as much as you can to lower your debt amount.
The next step is to budget for other expenses that come with a home. These can include property tax, insurance, lawyer’s fees and utilities. Make sure that you know what moving into a new home will cost you both at the time and in the future.
After this, it’s time to decide where you want to live! Take a look at different areas and weigh the pros and cons such as living in a potentially more expensive house in the city versus a potentially cheaper home but a longer commute to work. It is helpful to enlist the help of a real estate professional to help you consider all the factors. Once you have found a home that you want to purchase, a critical step is hiring a mortgage broker. For first time buyers who do not know a lot about financing a home, the process can be scary and confusing. A mortgage broker is there to help you find the best deal and help you understand how the financing process works.
Finally, make sure to become aware of government perks that are offered to first time home buyers. For instance, first time buyers can use their RRSP accounts to finance a down payment tax-free up to $25,000. Researching these benefits can make buying a home much easier.
Now that you know some steps to take before buying your first home, contact me today and let me be your Brampton mortgage broker and help you finance your dream GTA home.
