There are lots of firsts in a person's life: first time riding a bike, first date, first kiss, first job and first car. Then, there is the purchase of your first home.
Like any leap of faith, diving into the unfamiliar terrain of real estate can be scary and intimidating. There are the teasing ads in the paper, the flirtatious links on the Internet and the come-hither For Sale signs on manicured lawns.
It is at this point that many realize deciding on your first condo is even more daunting than selecting the perfect ensemble for a blind date or how to delicately make the first move in the movie theatre. In fact, once you take that first-base step to condo ownership, all you really need is some good advice to talk you through it.
FROM A MARKET ANALYST
As of Jan. 27, you are able to claim up to $750 on next year's tax return, says Lai Sing Louie with Canada Mortgage and Housing Corp. Due to these recent federal tax breaks, you can now also draw up to $25,000 from your RRSP plan to use as a down payment for your condo without penalty.
"You're basically borrowing from yourself," he explains.
Louie says you should shop around for good interest rates.
Rates are at historical lows; these days you have access to rates as low as four per cent for five-year mortgages.
FROM A MORTGAGE SPECIALIST
Know how much your condo fees are going to be, recommends RBC's Alex Wolder. First-time condo buyers tend to focus what their monthly payments are versus what their equity position is, such as whether they'll be able eat something other than Kraft Dinner, he adds. But condo fees range from $125 to $500 per month; your pre-approval amount will be based on an average condo fee rate.
If you discover your rate is higher, your pre-approval amount may be compromised.
"It could completely kibosh the deal, especially for first-time buyers putting down a minimal amount," says Wolder. "There is very little wiggle room."
-------------------------------------
If you are a first time home buyer and would like to meet with Greg Barrow from Dominion Lending Centres to discuss your financing options, please email me or call 416 807 7123 to set up a meeting. Please feel free to call or email if you just have a few questions you would like answered. Have a great day!
No comments:
Post a Comment