Are you ready to purchase a home this spring?

Are you ready to spring into homeownership? The spring housing market is often a busy one, after a long winter of lower activity. If you plan to buy this spring, it’s a good idea to do some work ahead of time so you can start off strong. Here are some items to think about!

Have you been saving a down payment?

Your down payment is the largest upfront cost of purchasing a home. Unsurprisingly, it also usually takes a long time to save up. The size of your required down payment will depend on the purchase price of the property. Homes up to $500,000 require a down payment of five per cent. Homes between $500,000 and $1 million must have a down payment of five per cent for the first $500,000, and 10 per cent for the remaining amount. If a home is more than $1 million, buyers must contribute a 20 per cent down payment on the entire purchase price. Any down payment below 20 per cent also requires the buyer to purchase mortgage default insurance. This is to protect lenders from a possible default, since they are financing a larger mortgage. 

No matter how much your future property costs, you are looking at a down payment of tens of thousands of dollars. If you plan to buy a home this spring, you hopefully also have a large amount of savings you intend on using for your down payment. There’s no point rushing into the market without these essential funds!

Do you know your housing needs and wants?

Another key part of buying a home this spring, or in any season, is knowing what you are looking for in a property. It will save you a lot of time and effort to understand your needs and wants before you hit the market. Otherwise, you could waste time viewing homes that are simply not the right fit for you. Before you start house hunting, take some time to consider what is most important to you in a home. You don’t have to know every single detail, but the more information you can provide your real estate agent with, the better prepared they will be when scouting out potential properties. 

Think about what your home must have. This might involve its location, access to amenities, number of bedrooms, accessibility, or a whole range of other factors. Your non-negotiables should be top of mind when looking for your future home. You can also think about your housing wants, but don’t let these sway your decision too much. For instance, a finished basement would be nice to have, but it is likely not a deal breaker. Try to keep these two categories separate!

Have you done any market research?

Don’t worry, you don’t need to be an expert on the housing market and learn it all overnight! However, it is always a good idea to have a basic understanding of market conditions, especially if you plan to buy a home this spring. Thankfully, the internet makes it very easy to research almost anything you want to know. You can examine housing prices in areas you want to consider, which property types are most popular, supply and demand, and even how mortgage rates look. This will give you an idea of what you can expect when you start house hunting, and it can help you understand the costs of homeownership. Of course, your budget is an essential part of buying a home, so having this information allows you to gain an idea of your buying power.

Have you started reaching out to professionals?

Finally, we have the key people who will make your homeownership dreams come true - mortgage and real estate professionals! There are several people involved in the purchase of a home, and you will be working closely with them. Two of the most important professionals in this process will be your real estate agent and your mortgage broker. Your realtor will find properties, arrange showings, and help you submit offers. They will negotiate on your behalf and ensure you put up a strong presentation in the market. Your mortgage broker will help you secure the right product and lender for your mortgage. This is essential, because having a suitable mortgage will make your homeownership experience easier and less stressful. If you are ready to begin the buying process, it’s time to get in touch with these experts.

Buying a home this spring is sure to be an exciting experience. Make the most of it by saving your down payment, getting organized, and contacting your mortgage broker! We are here to help you achieve your buying goals and match you with the perfect product for your needs. 

If you have any questions about your mortgage, get in touch!