Important things to know if you’re buying a home solo
Over one-third (35 per cent) of first-time homebuyers in Canada are single, and even though many will partner up later on, here’s some information to keep in mind for all the solo homebuyers out there.
- Figure out what you can afford: the first thing to do is to identify what you can really afford. This will include keeping in mind things like property taxes, utilities, insurance and other expenses (condo fees, etc.). You really want to be sure you can afford to live on your own, an easy tool to calculate this is to use a mortgage calculator, and I’ve got one available right here. You can start the process of mortgage applications right on my website here, as well as check out the current rates, or feel free to ask me any questions about this side of things.
If there is a history of missed or late payments, both of which can bring your number down, start a plan to change your standing by making regular payments on time. (Caution: there is no quick fix for a credit report; beware of companies that offer to change or “fix” yours for a fee.) — Genworth Financial
- Assemble a team: you’re already buying alone, don’t navigate the whole process on your own. You’ll save a lot of time and money by working with the right people. You’ll want to work with a mortgage broker, licensed REALTOR® and real estate lawyer. You can also work with a financial advisor to help you get your finances in order before the application process. Start by asking friends or family for recommendations, browse social media or look for other reviews online for choosing professionals. Tip: your mortgage broker will be able to recommend you to a real estate professional and a lawyer usually, so that saves you some time as well.
- Define what you want: figure out what neighbourhoods you want to live in and think a lot about what you want/need in a home, including amenities both in the home and nearby. Think about every aspect like transportation, parking, landscaping, property value, etc.
- Start saving: you need to come up with money for your down-payment, as well as closing costs, and general living expenses. Nobody wants to live paycheck to paycheck. Look into your options, if you can’t a 20% down payment or more, consider all the options out there with mortgage insurance, etc. You can also consider looking to family for some help with money to get your foot in the door.
According to the 2015 Genworth Canada First-Time Homeownership Survey, first-time homebuyers in Toronto and Vancouver tend to have higher down payments than buyers in other parts of the country. That is due partly to larger savings of buyers in those areas, but also to larger gifts and loans from family. — Genworth Financial
You can always throw any questions you have about homebuying or mortgages at me: email, call or tweet me.
