1. Don’t “low-ball” your initial offer
Vendors tend to give less of a counter offer (closer to list price) if they feel insulted. Understand the current market value of the home and comparable sales.
2. Get pre-approved
A pre-approved mortgage can be done for 90 days for FREE. You can usually negotiate your mortgage rate between 1/2-1% off the posted rates with your lender.
3. Have your agent arrange a home inspection
A home inspection with a qualified engineer costs approximately $300.00. It could very well be your best money spent. You want to know exactly what you are bidding on.
4. Avoid buying the most expensive home on the street
The most advantageous situation is to purchase the worst home in a good area, rather than the best house in the worst area. “Location, Location, Location” is true!
5. Prepare a down payment of at least 25%
When you have a down payment that is almost 25%, it is usually less expensive to arrange a first and second mortgage and save on CMHC insurance fees.
6. Arrange an accelerated Bi-weekly payment plan on your mortgage
On your mortgage, you will save the most money if you opt for an accelerated bi-weekly payment plan, or if you double up one payment per year. This will shorten your amortization periods by over 6 years!
7. Take advantage of tax credits
Place up to $35,000.00 per person of your down payment in a short term RRSP to be held for at least 90 days, or until closing.
8. Don’t stretch to the maximum you can afford
There are a lot of unexpected costs that come with buying a new home. Make sure you have enough to cover all your purchasing and closing costs, as well as any costs that might come after (such as moving costs, repairs, etc.)
9. Be sure to check into your lawyer’s fees ahead of time
These are separate from disbursements. Ask your agent, who will be able to refer you to reliable