Applying for a mortgage isn’t always the best of experiences, even if you’ve done it before there is so much to think about and it can become stressful.
The guys over at My Own Advisor have come up with this handy guide for anyone in the mortgage process whether first timers or experienced.
Tips for the first-timer
- There are definitely pros and cons to renting and buying. Everyone must make their own decision on this. I firmly believe buying a home, at least right away when you start your working career, is not for everyone for many reasons. Consider making a list of pros and cons that will speak to you.
- Once you’ve decided that you want to buy, get pre-approved. This can “lock-down” the borrowing rate for the next 90 or 120 days so you don’t need to worry rate increases within the rate-holding period.
- As a first-time home buyer there are certain privileges you are entitled to. Make sure you do your homework and understand the benefits, conditions and implications of each:
- First-Time Home Buyers’ Tax Credit. This tax credit gives you a tax break on up to $5,000 of your closing costs.
- There is also the Home Buyers Plan. This program allows you to withdraw funds from your registered retirement savings plans (RRSPs), up to $25,000 in a calendar year. You have to repay all withdrawals from RRSPs within a period of no more than 15 years, repaying an amount to your RRSPs each year until your HBP balance is zero. There are more terms and conditions to be mindful of so check out that link above.
If you would like to read the full guide then head on over to: Mortgage Tips for Homeowners of All Ages