Residential real estate comes with many restrictions when it comes to first time home buying in Canada. An experienced residential real estate lawyer can be of help here. Clients come first at KLJ Law, and attorneys at KLJ Law can help you determine whether all your property taxes have been paid, the title is valid, the closing land transfer tax has been calculated, and any liens against your property. A lawyer can also help you examine legal documents, such as the Agreement of Purchase and Sale when buying a house.
Down payments and other additional expenses
The “down payment” is the amount you put down to purchase a home. Your mortgage terms will be more favorable if you have a larger down payment. The typical down payment for a home in Ontario is between 5-20% of the purchase price. You can avoid the Canada Mortgage and Housing Corporation mortgage default coverage by paying a 20% or greater down payment. The additional expenses incurred to close a real property transaction could be as high as 4 percent of the purchase price of your home.
Getting your finances in order before buying a house
Many factors decide what type of mortgage you can qualify for and how much you can afford. You should be careful about your credit score when you put down money for a down payment. Additional documentation is required to be eligible for a mortgage. This includes a government-issued photo identity card, proof that you are employed and earning income, as well as proof of assets and debts.
Pre-approval for a Mortgage
A mortgage calculator can help you determine how much money you have available to pay for a home. Although a pre-approved mortgage is not necessary, it is strongly recommended as it will give you a budget to work from. You can also shop around to find the best mortgage terms from other banks. There are many mortgage types, including fixed and variable rates, open and closed mortgages and home equity credit lines.
Rebates for first-time home buyers
You may also be eligible for the first-time home buyer refund, if you are buying your first property. The rebates can only be claimed if the following criteria are met.
- You must be at minimum 18 years of age
- You must move into the property within nine months of closing.
- You are not allowed to own residential property in Canada or anywhere else on the planet.
- You must be either a Canadian citizen or a permanent resident.
When purchasing your first home, you can take advantage of many Canadian first-time homebuyer benefits. These are just a few examples.
- Land transfer tax rebate
- RRSP Home Buyer’s Plan
- GST/HST New Housing Rebate
- CMHC mortgage default insurancehelps you navi
- Land transfer tax rebate
- First-Time Home Buyers’ Tax Credit
Do you want to buy a Canadian home? Call xxx to make an appointment and have your papers and documents reviewed. Also, find out more helps you navigate the real estate buying process.