Do you know that for an average North American homeowner, as much as 40% of their wealth is tied up to their home? There is no doubt that a home is one of the most expensive purchases anyone can make in a lifetime so it goes without saying that it is a financial decision that deserves to be carefully thought of. If you’re planning to buy a home soon, you may want to look into what’s written below for your consideration.
Aim for a Huge Downpayment
Ideally speaking, you should aim for at least 20% downpayment so that you can enjoy lower interest, have fewer risks, and have higher chances of getting the home that you want.
Be Sure to Have Enough Savings
While it is a good idea to pay as much downpayment as you can afford, you won’t want to go without at least a few months’ worth of expenses in savings. In the event that you encounter financial difficulty, having a strategic reserve like this can prove to be a lifesaver to help tide you over until you’re financially well again.
Buy for Your Needs, Not What You Think the Home Can Sell for Later
It isn’t easy to sell a home that you no longer want considering that market conditions can change drastically within months. With this in mind, you must make sure that you’re buying a home that you can truly live in and have a great life in. This way, even if you’re not able to sell it for profit and end up living in it longer than planned, your quality of life won’t suffer.
Choose a Fixed-Rate Mortgage
After you’ve been pre-approved for a mortgage, you’d want to make sure that you choose a fixed-rate one because it will provide you with a specific rate of interest that is easier to budget for. The last thing you want is to be surprised with huge bills that you did not anticipate once you got your new home.
Don’t Forget to Compare
Do you know that one of the biggest mistakes committed by most homebuyers is not looking around for a better mortgage provider? More than half of homebuyers typically just talk to 1 lender. When you shop for a mortgage lender, you’ll be able to compare rates, services, and more to find the best fit for you.
Set A Budget
Viewing new homes can make you go for things that you don’t need, such as features that seem tempting but have no long-term use for you. If you have a set budget, it will be easier to avoid getting mesmerized by extra home features and easier to avoid buying the wrong home too.
Because buying a home is such a huge investment and involves a significant amount of money, it isn’t easy to change one’s mind or try to get rid of a home once you’ve signed to purchase it. To be on the safe side, you should go for a home that you’ll be fine living in for the next 5 to 10 years if planning to purchase.
Lastly, don’t forget to get the help of expert real estate agents in your target area if you’re serious about buying a home soon. You can find professional low commission real estate agents in Toronto via feeDuck. FeeDuck is a website that connects homebuyers to low commission realtors in Toronto and the rest of Canada with just a few clicks! Visit feeDuck today if you want serious assistance when buying a home in Canada!