The Canadian Mortgage & Housing Corporation (CMHC) recommends:
Buying a home is one of the biggest emotional and financial decisions you’ll ever make. Prepare by learning about the process of home buying and the responsibilities of homeownership. The differences between renting and buying a home are vast, and there’s a long list of pros and cons for both options. And, remember — there is no one best decision for everyone. Before moving forward, though, here are some questions to consider.
Do you have the necessary financial management skills?
How financially stable are you?
Are you ready to take on the responsibility of all the costs involved in homeownership, including mortgage payments, repairs, and maintenance?
Are you able to devote the time required for home maintenance?
For step-by-step information on home buying click here.
Choosing your Realtor
Getting the right professional behind you is an important decision, you should look for someone who:
- Actually knows who you are unlike the lead of a team
- You can trust
- You are comfortable with
- Keeps up with the changing marketing landscape
- Is available for you
Things that are good to be familiar with
- Your monthly income.
- Your monthly debts and expenses.
- How much you have set aside for a down payment.
Gross Debt Service (GDS) ratio.
Your monthly housing costs shouldn’t be more than 32% of your gross household monthly income. This includes mortgage principal and interest, taxes and heating expenses.
Total Debt Service (TDS) ratio.
Your entire monthly debt load shouldn’t be more than 40% of your gross monthly income. This includes housing costs and other debts such as car loans and credit payments.
- Land Transfer Tax
- Mortgage Insurance
- Legal Fees
- Title Insurance
- Home Insurance
Home Buyers Tax Credit
For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000.
For more information, click here.