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Nov. 20, 2009- Buying a first home is an exciting and rewarding experience, yet it can be a very challenging one as well. It is especially important for newcomers to Canada and first-time homebuyers in general to research and consider all the options.
"Before you begin shopping for a home, it's important to know how much you can afford to spend on homeownership," according to a recent Canadian Mortgage and Housing Corporation (CMHC) report. "You will want to plan ahead for the various expenses related to homeownership."
The main expenses of homeownership, including heating, home maintenance, property taxes, and renovations as they come along, should be taken into account.
CMHC recommends speaking with a mortgage broker, because as home-buying financial specialists, they're able to help anyone looking to purchase their new home establish how much they can really afford.
"If you want to do some calculations on your own, simple calculators and worksheets are available on the Web to help you determine your maximum home price and related monthly payments," according to the report.
CMHC also suggests knowing right from the get-go what you're looking for in a home. Things to consider are your individual size requirements, special features needed such as air conditioning or a swimming pool and your specific lifestyle and stage. For instance, your needs will differ depending on whether or not you plan to expand your family, have teenagers moving away soon or are retiring. Furthermore, CMHC suggests identifying and ranking the importance of neighbourhood, proximity to work, schools, cultural community centres and places of worship.
After you've selected your ideal home and environment, the next step is to find a real estate agent who will help you make an offer. To do so, CMHC suggests asking your mortgage broker, friends or family for a referral, or you can contact realtors whose name and number is listed on 'for sale' signs in your desired neighbourhood.
The next step is making an offer. Your real estate agent and/or lawyer will help with this process. The offer to purchase should include the purchase price offered, the amount of the deposit, extra items you want to negotiate into the purchase price, the closing date, a request for a current land survey of the property, and the date the offer becomes null and void.
Once the offer has been accepted and financing has been secured, a home inspection is a very good idea, according to the report.
"It's wise to make your purchase conditional on the home passing a professional home inspection. For a fee of $300 and up, an inspector will make a detailed inspection of the property," according to the report.