Tip #10: Consider using your HBP allowance of up to $25,000
Use your RRSP as your savings account towards your down payment, it will help you maximise your tax return. You will be able to withdraw up to $25,000 tax free under the HBP (first time home buyers plan) to use towards your down payment. Just remember, you can't use the contributions you've made within the last 3 months.
Tip #9:TIP #9: Get preapproved
It will help you know the price range of houses you can be looking for and let you jump on quick sales and foreclosures, to get the most out of your buck.
TIP #8: Find a realtor
Realtors can help you find houses that have all your must-haves and remind you of a few you might forget due to all the excitement of house shopping.
TIP 7: Keep to your budget
Make sure you don’t overstretch your budget for the perfect house, being house poor is not fun, be ready to walk out, another house will be waiting for you.
TIP #6: Get a home inspection
Hidden problems could increase the cost of your property, a home inspection should uncover most of them, and even if you still want to buy the house, it will give your realtor the ammo to reduce the house price.
TIP #5: Make an offer
Do not postpone making an offer if you really like the house, you can add clauses for home inspection, etc if you uncover something that changes your mind. Delaying the offer might just make you lose your dream house.
TIP #4: Plan for extra costs
Buying a house is more than down payment and applying for the mortgage, make sure you save for closing fees such as lawyer, property taxes, title insurance, etc., moving expenses, appliances, furniture, etc.
You can decorate and do upgrades to the house but can’t move the house to a different neighborhood. Commuting distance, schools and noise nearby might be a deal breaker even if the house is perfect inside.
TIP#2: Have realistic expectations
You might need to compromise on things you can live without, your budget is important and being house poor is not fun. Realize you may not get everything you are looking for on your first home but it is the first stepping stone from which you can build up from.
TIP#1: Enjoy the ride
You will only buy your first house once in a life time, take your time, it’s a big purchase but it does not have to be stressful. At the end you will have a house you can call YOUR OWN HOME.