Home Buyer's Guide Your Step by Step Guide to Buying a Home in Canada Start Reading


Step 1

Deciding to Buy

Is homeownership right for you? Deciding to buy a home is one of the biggest decisions you will ever make.

As a first time home buyer you should ask yourself a few questions: Why do you want to buy a home? What do you want in a home? What is your current financial situation? Are you aware of all the costs and responsibilities? Are you ready to devote the time to regular home maintenance?

If you are not a first time home buyer, you are probably looking to buy a home to accommodate a family or looking to expand your investment portfolio. Regardless of your reasons for deciding to buy a home, it is important to know why you are buying because it will inform your decisions about what you would like to look for.

Step 2

Preparing to Buy

So you have decided that home ownership is right for you. Now, you will need to determine if you are financially ready to own a home. At this point, it is important to figure out how much you can afford to spend before you start finding a home.

There are two affordability rule that will show you what you can afford to pay for a home. The first affordability rule is your monthly housing costs should be no more than 32% of your average gross monthly income. Your housing costs include your monthly mortgage payment, property, taxes and heating expenses. The second affordability rule is your monthly debt should be no more than 40% of your average gross monthly income. Your monthly debt load includes housing costs, car loans or leases, credit card payments, line of credit payments and other mortgage payments.

You should be fully informed about your current financial situation. This will help you be more prepared when you meet with your lender or broker. You will need to calculate how much you are spending now, how much you can afford, the upfront costs such as down payment, home inspection fees and insurance costs, and how will your budget look as a homeowner.


Step 3

Choosing a Realtor®

Buying a home is an exciting time, but a complex and complicated process. Therefore, it can be an overwhelming experience when going through the process of your largest financial decision. You want to make sure that you are working with someone that will help take away the stress and get you the results that you are looking for.

At The Curtis Goddard Team, we know what to look for when showing you the home and can ensure a smooth process through your home purchase. We want to make sure that you are happy with your purchase and do not make any costly mistakes that the inexperienced home buyer can make. With our years of experience, we have developed an extensive network and built connections within the community and can find the perfect home for you in the right neighbourhood.

Step 4

Finding a Home

Finding the right home is a lot like finding the ideal partner. It might take a while, but when you find the right home, you will always have the perfect place to unwind and make memories with your family.

Even though finding the right home is a top priority, you will have to love the neighbourhood too. You should get to know the neighbourhoods which interest you. Take a drive or walk around to get a feel for what it would be like to own a property in the area. You should narrow your search by selecting a few properties that interest you. Then, call your Realtor® to setup an appointment to visit the properties that interest you.

When you find the property you want to purchase, your Realtor® will help you to make an offer to purchase. But, how do you know if you found the right home? You will know if you found the right home if you want to go inside the house, the house embraces you the moment you enter, you are possessive about the house, the house fits your basic needs and you want to stop looking at other properties.

Step 5

Closing the Deal

Once your offer to purchase is accepted by the seller, visit your lender or broker to verify and finalize your mortgage. Before you go, you will need to bring important documents that will likely be required such as the legal description of the property, building specifications, an appraisal, home inspection reports and the signed offer to purchase.

Next comes closing day. This is an exciting time because it is when you finally get to take legal possession of your home. During closing day, your lender gives the mortgage money to your lawyer, you give your down payment minus the deposit and the closings costs to cover legal fees and other costs to your lawyer and your lawyer pays the seller, registers the property in your name and gives you the deed and keys to your home.

Step 6

Moving into Your Home

Before you move into your new home, you should change the locks to keep your family and home safe. In addition, you should also check smoke alarms and carbon monoxide detectors before you decide to sleep in your new home.

Once you have completed these tasks, it is time to call the movers and move in. We know that moving is a hassle so it is important to stay organized as you settle into your new home. We recommend that you create a checklist to make sure that you do not forget anything.