Price Range and Financing

One of the first things you should do is confirm how much you can afford. If you require financing, a visit to a mortgage advisor at your bank or a mortgage broker will help you to determine your affordability range.  There is more to discuss of course, this includes the type of mortgage you select.  Make sure you select a trusted advisor as these decisions are critical, e.g. selecting a variable or fixed mortgage and other intricacies of the mortgage terms. We can offer some recommendations if you are in need of an advisor. See Mortgage Calculator link below.

Property Type

The type of property you purchase may depend on your affordability range, for e.g. a house vs a townhouse.  You will need to determine which one of these best suits your price range, needs and lifestyle.  This may mean selecting a different location so you can afford your ideal type of home.

Location

If you would like to be in the city, this may mean selecting a smaller property as opposed to moving out to the suburbs. As mentioned above, the location you prefer may affect the type of home you select and vice versa.

Purchasing Fees and Annual Payments

There are other costs that you should add to your budget, such as legal costs, home inspection costs, home insurance, property tax, strata fees (for townhouses and condos) etc.  These can add up and you should be prepared. Some are up front during the purchase, while others will need to be added on top of your monthly mortgage payments or annual fees. See Closing Cost Calculator link below.

Trade Offs

You should have a discussion with your family on your list of “Must Haves” and “Good to Haves”.  As your search progresses, you may need to make sacrifices. When searching for a home, you should focus on things that cannot be changed in the future that are deal breakers (e.g. location and size of backyard). Kitchen cabinets, flooring, wallpaper etc can be changed later on, adding another room is another story.

Repairs and Upgrades

The home you select may require some minor repairs or upgrades.  Try not to “max out” your savings in the purchase of the home, as often some repair and upgrade may be required to make the home comfortable and cosmetically appealing when you move in.  Repairs and upgrades can also be time consuming and inconvenient, if your current situation will not support this, you will need to consider your options e.g. refining your search to “move in ready” or adding some time between “date of possession” and “move in date” so you can have the required work done.

Schools and Commuting

These are some other considerations dependent on whether you have kids and if you need to commute to work or for other obligations. Most listings will include the schools within the catchment. Also, consider how long it will take you to get to work during rush hour, if applicable.

Other Useful Links for Home-buyers

Disclaimer: All links provided below are to third-party sites with no affiliation to the Todd Johnson website. These links are intended to provide information at the discretion of the viewer.