Buy a Home GuideThis site gives you home buying tips to help you buy homes wisely:Planning to buy a home?Are you a first time buyer? Where should I live? How about living in a sustainable neighborhood? How much can I afford to buy a home? What are the purchasing costs? How do I negotiate? to buy a home? Should I use a buyer’s real estate agent? What is a home inspection? all about? Here are more tips on buying a home to get you started:1. Obtain a Copy of your Credit Report Your credit report can have errors in it: repaid loans that show up as outstanding, closed charge accounts that appear as available credit. Clear up any mistakes before you apply for a loan. Find out your credit rating here. 2. Reserve Your Mortgage Rate Negotiate your best rate and ask how long the lender will hold that rate for you. 90 to 120 days is normal. In Canada you must qualify for a mortgage using the 5 year fixed rate regardless of what term you choose for your mortgage. 3. Use a Mortgage Broker Mortgage brokers can deal with a large number of lenders and should be able to find a best rate. I recommend Peter Puzzo, a helpful, caring mortgage broker in The Greater Toronto Area with years of experience. 4. Use Caution in Using the Maximum Amount You Qualify for Lenders will allow payments on your mortgage up to 40% of your gross annual income. This limit may not give enough of a buffer to allow for an increase in interest rates later or an unexpected expense. Canada Central Mortgage and Housing suggests going no higher than 32% of your gross monthly income to pay for the monthly costs of mortgage payment, property taxes and heating expenses. 5. Consider a Fixed Mortgage Rate First time buyers should think about a five year, fixed rate mortgage. The buyer will know exactly what their payments will be for five years. Experienced buyers could consider a hybrid mortgage that allows for a fixed rate part and a variable rate part. Variable rate mortgages in Canada have cost less over the long term. However, the ups and downs in the rate may cause anxiety for some people. 6. Your Real Estate Lawyer According to the Ontario Court of Appeal(1999,Wong v. Hui) lawyers can be held liable for their legal advice and failure to attempt to negotiate a better deal for their clients even if they are not contracted until after the agreement of Purchase and Sale has been signed. Buyers and Sellers should retain their lawyers early. The Agreement of Purchase and Sale can be discussed very quickly over the phone with your lawyer before signing takes place. Real estate lawyers are very familiar with the real estate forms in use. They know what questions to ask. Here is a url to a list of Lawyers by province and city. 7. Line up Your Team Early: home inspector, mortgage broker or financial lender, insurance broker, real estate lawyer, and real estate representative. Read the page explaining the Agreement of Purchase and Sale What Should I Buy?How much space is enough?A New Home?A new home with a builder’s warranty will be up to date with the latest building codes, energy efficiency plumbing and electrical standards and will not require much maintenance for a few years. Schools, stores and other services may not be built in the area for a few years.As of July 1, 2010 HST will apply to a purchase of a new home in Ontario, Canada. Check your area to determine what taxes are applied to the sale price and real estate commission. Make sure you know exactly what is included in the purchase price; for example, sod, paved driveway, trees or shrubs, fireplace..You may be able to choose the type of flooring, cabinets, trim, and so forth.New home warranties: Ontario: Tarion Warranty Quebec: La Garantie des Maisons neuves du Quebec Atlantic : New Home Warranty Manitoba: New Home Warranty Saskatchewan New Home Warranty Alberta: New Home Warranty New Home Warranty GST/HST: New Home Rebate Resale Home?An established neighborhood has stores, schools and other services. Build my Own Home?Building your own home is a challenge and requires time and energy. But you get what you want!For a comprehensive website detailing all aspects of building your own home visit the house plan guide What Type of Home Should I Buy?"Homes that properly fit how people live tend to sell faster and for more money" Christopher Wright, Indianapolis based remodeler.Single-family Detached? Rent to Buy HomesRent to own homes houses properties is a good way to check out a new town or neighborhood without committing to that big purchase. The agreement to rent to buy can include the provision that previous rent monies will form part of the purchase price of the home.Renting vs Buying a HomeRenting versus buying a home is a consideration when mortgage rates are high. When mortgage rates are low as in 2011 the monthly rental payment is probably the same or more than a monthly mortgage payment. However, buying a home does require a substantial down payment, usually 10% of the purchase price. Go from buy a home to Home Page Home Maintenance Guide
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