First Time Buyers
Welcome to the adventure!
(oh, I’m excited)
First Things First
Welcome to the adventure! I am so excited to get you into your new home. Buying your first home is an enormous step and I understand how exciting and overwhelming it can be. Rest assured, I will be there to answer any and all questions along your journey - and I mean just that. Purchasing real estate is a journey, and it should not be taken lightly; especially for those doing it for the very first time. Emotions will run high and you will become stressed. However, as my client, I will protect your best interests from our first meeting to the day you open the front door, and even after that.
Consider me your full-time guide into the land of homeownership. I understand that I am asking you for a great deal of trust, and I assure you no question is too small. I encourage you to call me anytime and learn more About Me.
“Hunter Agnew is a exceptional agent. He was knowledgable, friendly and made this process easy to understand. It was pleasure to spend time with him.”
Let’s Get Started!
I highly recommend that you read through each of these amazing resources - read them left to right. They highlight all the home buying essentials and will likely answer a fair few of your initial questions.
Homebuyers’ Road Map
This brochure-style resource is a great introduction to get you started. It will cover the basic topics from financial readiness and mortgage options to finding a home and closing costs. It’s a great morning-time read over your favourite cup of tea.
Homebuying Step By Step
This booklet from the Canadian Mortgage and Housing Corporation goes into greater detail with chapters dedicated to each step of the home buying process. It also has a great glossary at the end if you’re seeking some clarity on terms. It’s a longer read, perfect for an afternoon in your favourite coffee shop.
Buying A Home
The Real Estate Council of Ontario is a great resource to further your buyer education. This web page has links to some popular topics buyers often have questions about. This is an easy-to-navigate, read at your own pace kind of resource. A good one to bookmark in your web browser for easy access later on.
First Time Buyers SURVIVAL GUIDE - Caitlin Eason Mortgages
First Time Buyers SURVIVAL GUIDE - Caitlin Eason Mortgages
An excellent resource for First-Time Buyers and also has lots of relevant info for second- and third-time buyers, too. Covers everything from the steps involved in the pre-approval process to acceptable down payment sources, determining your budget and what happens once you're pre-approved.
Top 10 Words to Know When Buying a Home
1. Amortization
Length of time over which the debt will be repaid.
2. Mortgage Term
Length of time that the mortgage contract conditions, including interest rate, is fixed.
3. Closing Costs
Costs in addition to the purchase price of the home, such as legal fees, transfer fees and disbursements, that are payable on closing day. They range from 1.5% to 4% of a homes selling price.
4. Down Payment
The portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage.
5. Equity
The difference between the price for which a home could be sold and the total debts registered against it. Equity usually increases as the mortgage is reduced through regular payments. Market values and improvements to the property may also affect equity.
6. Fixed / Variable Mortgage Interest Rate
A fixed mortgage interest rate is a locked-in rate that will not increase for the term of the mortgage. A variable mortgage interest rate can fluctuate based on market conditions, but the mortgage payment remains unchanged.
7. Gross Debt Service Ratio (GDS) / Total Debt Service Ratio (TDS)
GDS is the percentage of the gross income that will be used for payments of principal, interest, taxes and heating costs and 50% of any condominium maintenance fees or 100% of the annual site lease for leasehold tenure. TDS is the percentage of gross income that will be used for payments of principal, interest, taxes and heat and other debt obligations, such as car payments or payments of other loans.
8. High-Ratio Mortgage / Conventional Mortgage
A high ratio mortgage is a mortgage loan higher than 80% of the lending value of the property. A conventional mortgage is a mortgage loan up to a maximum of 80% of the lending value of the property.
9. Mortgage Loan Insurance
Mortgage loan insurance is typically required for residential mortgage loans with a loan-to-value ratio of more than 80%, and is available from CMHC or private companies. It is important not to confuse mortgage loan insurance with mortgage life insurance, which gives coverage for your family if you die before your mortgage is paid off.
10. Open / Closed Mortgage
An open mortgage is a flexible mortgage that allows you to pay off your mortgage in part or in full before the end of its term. A closed mortgage, in some cases, cannot be paid off in whole or in part before the end of its term. In other cases, the lender may allow for partial prepayment of a closed mortgage in the form of an increased mortgage payment or a lump sum prepayment. However, any prepayment made above stipulated allowances may incur penalty charges.
Other terms still confusing? Check out my glossary for further explanations and resources.
Affordability
Buying a home is likely the largest financial transaction of your life, and as a First Time Home Buyer, seeing these figured next to the dotted line can be overwhelming. However, there are many incentives to help make your house dreams into a home reality.
Home Buyers’ Plan
The Home Buyers' Plan (HBP) is a program that allows you to withdraw from your Registered Retirement Savings Plans to buy or build a qualifying home.
Home Buyer’ Tax Credit
You can claim up to $5,000 for the purchase of a qualifying home in the year. There are some limitations. Click the link below to learn more about this tax credit.
Land Transfer Tax Refund
When you buy land or an interest in land in Ontario, you pay a land transfer tax. First-time homebuyers’ of an eligible home may be eligible for a refund.
When it comes time to submit an offer, your budget will be the ultimate determining factor. There are a number of factors to consider when creating your budget; net income, down payment size, monthly expenses, necessary upgrades/improvements, closing costs, etc..
A realistic budget will always help you stay on track. I highly suggest checking out my budget resources to help you establish your budget.
Choose a REALTOR®
I cannot stress enough the importance of working with a professional REALTOR® if you are looking to participate in a real estate transaction - especially if you are a first-time buyer. Unfortunately, there are those out there who are looking to profit off of others who are inexperienced. A professional REALTOR® must follow the REALTOR® Code of Ethics and, as their client, protect your best interest at all times. They can navigate dynamic markets and apply their experience and expertise to help you reach your goals with peace of mind.
Before you sign any agreement(s) or receive any service or assistance from a real estate agent you must first read this guide from the Real Estate Council of Ontario (RECO) and your agent must explain it to you.
This information guide walks the consumer through the Things You Need To Know when working with a real estate agent, including the risks of representing yourself, signing a contract with a real estate brokerage, understanding multiple representation and how to make a complaint.
I believe that real estate is an adventure, and the relationship you have with your guide can truly, make or break your experience. As a professional REALTOR®, I understand that buying a home is more than just a business transaction and, I encourage you to make sure I’m the right fit for you before we start our journey together. Call me and ask questions, check my references, and confirm my registration with RECO.
If you’re weighing your options and find yourself asking, “why a REALTOR®”, click here.
Next Steps
Congratulations on learning the basics of home buying! Now that you a solid foundation, I encourage you to continue learning by checking out my Let’s Learn - with Hunter blog post on buying. In this post, I go into more detail about some of the intricacies of buying a house. Here you’ll find my 7 Steps For Success, and more information on Searching For A Home, Viewing a House, Making An Offer, Closing The Deal.
Remember, you got this! And when you feel like you don’t, I’m always just a phone call away.
