Buying your first home is a thrilling milestone, but it requires careful financial planning to ensure you’re ready to make that big investment. Here are seven tips to help you get started this fall:
1. Set a Realistic Budget: Calculate your total monthly expenses, considering mortgage payments, property taxes, and utilities. Aim to spend no more than 30% of your monthly income on housing.
2. Save for a Down Payment: Typically, a 20% down payment is recommended to avoid mortgage insurance, but even 5-10% can get you started. Explore options like the FHSA or the RRSP Home Buyers’ Plan to boost your savings
3. Reduce Debt: High levels of debt can affect your mortgage approval. Pay off or reduce outstanding credit card balances before applying for a mortgage.
4. Improve Your Credit Score: A higher credit score can lead to better mortgage terms. Check your credit report for any errors and make timely payments to boost your score.
5. Build an Emergency Fund: High levels of debt can affect your mortgage approval. Pay off or reduce outstanding credit card balances before applying for a mortgage.
6. Get Pre-Approved: A mortgage pre-approval gives you a clear idea of how much you can afford and strengthens your offer.
7. Consult a Mortgage Professional: Guidance from an expert ensures you are on the right track and prepared for your home purchase.
Any question, reach out!
