Top Mistakes Made By First Time Home Buyers and How to Avoid Them
Buying your first home is a major decision. Though it is often an overwhelming and excruciating process, it is the excitement of becoming the sole owner of a piece of land that makes more and more Canadians think of buying a property and lock into a favorable mortgage rate.
As any mortgage expert will tell you, the current mortgage rates and rules are considered to be favorable for a majority of buyers. The Canada mortgage can be made even more feasible on the pocket if the buyer possesses a sizeable down payment and credit score. However, either because of the lack of guidance or rushing of things, a lot of home buyers make a handful of mistakes that make their payment schedule a little heavy on the pocket.
The following are some of the common mistakes that first time home buyers usually make when locking into a Canada mortgage. All these issues can be addressed through prompt planning and the right type of guidance. Read on to find out how:
Lack of Research
Remember that buying a house is a big financial investment and thus the decision should not be rushed. Look into all the facts related to the property – from the repairing needs to the surrounding neighborhood - and then finalize a deal that checks all the boxes in your list.
Even if you completely fall in love with a house, do not let the liking cloud your judgment. Instead, conduct thorough research and seek professional help to make sure that this indeed is the house of your dreams!
Not Paying Enough Down Payment
Experts strongly advise that even those Canadians who are not thinking of buying a home for a few years should start saving for a down payment NOW. A decent down payment on your part will not only help you get a lower mortgage rate but it will also cut down on your interest and secure the equity of your home.
Even though you can get a Canada mortgage without a sizeable down payment, it is usually not a good risk to take for first time home buyers.
Ignoring Home Inspection and Maintenance Costs
Another common mistake that is widely seen amongst first time home buyers is skipping on professional home inspection. It is important that you get the property inspected thoroughly to get an estimate on how much is the renovation, repair and maintenance going to cost you.
And no, just looking at the property yourself is not enough. A professional will check the wiring, plumbing and roofing etc in detail and can save you on thousands of dollars worth of maintenance in the future.
Unfamiliarity with the Closing Costs and Hidden Expenses
Lastly, bear in mind that the Canada mortgage payments will not be the only expense on your budget when you buy and move in to your house. There are several closing costs involved in the deal, which include the land and property taxes, insurance etc.
Research on all these factors as well when you are deciding on a mortgage rate and you will be able to enjoy a comfortable and worry free move in your brand new home! Best of luck!