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How to: Buy My First Home

Thinking about becoming a homeowner, but wondering where to start? There are many moving parts in a real estate transaction, which can become overwhelming. Being organized will assist in successfully achieving your goal and we are here to help.

Here is a summary of the steps in involved with achieve your goal of home ownership:

1. Determine Your Budget

Down Payment + Mortgage Amount = Your Home Purchase Budget

A down payment is a sum of money you will put towards the purchase of the house and therefore helps reduce the amount you will need for a mortgage. Before deciding on the down payment, you should assess your needs and budget for the additional expenses that will be incurred to acquire your home. See below to for more information regarding down payments.

Meet with a Motor City Financial Services Representative to discover what down payment amount will fit your budget and goals. Once this is determined, will review the various type of mortgage products that best suits your needs and we will provide you with a pre-approval of mortgage amount at a specific rate which are usually good for 90 days.

Use our mortgage calculator to help determine your budget

2. Determine What You Want in a Home and Hire a Realtor

A good experienced realtor can help you manage your timeline and expectations.  Provide the realtor with what you would like in a home  and come up with a list of the must-haves like a specific location, two bathrooms, be a certain school district, a pool, attached garage, etc.  Once you have found the perfect home, your realtor will write up the offer and guide you toward the closing date with Motor City and your lawyer. 

3. Hire a Lawyer

Hire a lawyer that is experienced in residential real estate transactions. Your realtor will forward the purchase agreement to the lawyer. The down payment will have to be delivered to the lawyers’ office at the time of signing the legal documents and the credit union will forward the mortgage proceeds to the lawyer.

4. Other Costs

When buying a house there are often many unexpected cost that come up once you officially purchase your new home. It is important you plan for certain additional expenses when buying a home, here are a few to consider:

Mortgage Transaction Fees

  • House inspection and appraisal fees
  • Provincial taxes on the mortgage insurance premium for homes in Ontario
  • Legal fees

Land Transfer Tax

  • First time Ontario homebuyer’s qualify for a rebate of up to $4,000 for the land transfer tax. Click Here to Learn More

Property Taxes

  • Adjustment for property taxes prepaid by the seller

Other Expenses

  • HST on brand new homes
  • Moving fees
  • Home insurance
  • Life or Mortgage insurance
  • Condominium fees
  • Home improvement (painting, interior decorating, etc.)

Ready to make your dream a reality?

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