Owning your own home, it is a dream you can catch!!
Monday Feb 01st, 2021
Home ownership has for me been one of the most rewarding feelings, the knowing that time and money spent on my home will not only let me enjoy it more but in most cases will yield me a profit upon selling. This is usually not the case when you rent, any painting, updates or extra's are precisely that, extra's that come out of your pocket with no return except for the time you enjoy them, outside of that it's the landlord that will probably benefit. Buying your first home or possibly even the thought of doing so can be overwhelming but with a little more education and guidance you may find its not an unattainable dream and buying your first home is the next step in building your future!!
The truth of the matter is a lot of people enjoy the imppernance of renting, it's that whole fear of commitment thing us humans have!! It may change though when you realize that the monthly price you pay for renting is usually about the same if not sometimes more than if you owned your own home, that's right property tax and all. I have been a landlady for a few years now and my property tax is rolled into the rent payment plus they pay their own utilities, this is pretty mainstream. So really what is the missing equation? a down payment? especially for those that have the luxury of still living at home and working...SAVE..SAVE...SAVE!!! this dream is so much easier to attain without already having big monthly payouts happening, already renting? I know it may seem impossible to muster up any savings but it is possible, very possible!!! I was a single mother and that was my #1 goal , for my daughter and I to have our own little home, I worked my butt off, I saved and sacrificed, after 6 months of renting I bought my home...let me tell you no better feeling than that it has only been onward and upward from there!! This is a very attainable goal, believe me!!
A big part of bringing this to fruition of course is the vision and the desire BUT you need a good team of professionals as well to help educate you and make the whole transaction as smooth as possible.
1. Find a great mortgage broker, I know a few that come highly recommended but ask around see what names come up and interview a couple see who YOU feel comfortable with, once you get the cold hard facts taking the next steps aren't as scary ,trust me it puts everything into perspective. There are quite a few different mortgage options out there, see what's the right fit for your lifestyle. Get your pre-approval.
2. Find a local agent that knows the area well, has a great network of professionals to work with but most importantly, someone you feel completely comfortable with and fully trust!! This is one of the largest most significant purchases you will make, you want to make it a memorable and enjoyable one!! Dedication and devotion to your needs should be of upmost importance!!
3. A real estate lawyer to guide you through the process to make sure your purchase is a sound and secure one as well as dealing with transferring of funds, again make sure this is someone reputable and you feel comfortable with.
So what if you are thinking I am to young, I still want to travel, I don't want the responsibility?!?! That's were the possibility of being a landlord, renting your property out may be a very lucrative option! Of course there is risk involved but anything in life worth having carries some sort of risk. This will leave you free to explore the other facets of your life while still building equity in your investment and possibly a bit of income as well, how amazing is that!! Like I said earlier I know this dream is very attainable, you can't go wrong with real estate as a long term investment and who doesn't love the feeling of building security for a comfortable financial future for virtually the same financial commitment as renting. If you are on the fence about this big but amazing decision please contact me and I can discuss any questions or concerns you may have!! Have a great day and all the best on your journey ahead!
Please see below, these are some incentives offered:
But the Ontario government wants people to move here, invest in real estate, and contribute to the economy. To accomplish this, the government has provided many government programs to help first-time home buyers.
- 1. HST New Housing Rebate
The federal government provides an HST rebate of up to 36% to buyers who purchase either a newly built, or greatly renovated, home. The rebate is intended to encourage people to build upon and improve their properties.
The provincial government provides an even more generous rebate, of up to 75% off the provincial part of the HST.
- 2. Mortgage Loan Insurance Rebate for Energy-Efficient Homes
To keep demands on the power grid to a minimum, the CMHC provides a rebate of up to 10% of mortgage insurance costs if a home meets certain standards for energy efficiency.
You will need to provide an EnerGuide assessment showing a score of 82 or higher. This tax credit applies to both previously- and newly-built homes.
- 3. First-Time Home Buyer’s Credit
This tax credit offsets closing costs. If you are buying your first house, you are eligible for a 15% credit on your closing costs. The maximum amount for the credit is $750.
- 4. CMHC 5% Down Payments
The CMHC makes mortgage insurance available to first-time homeowners even if they can only afford a 5% down payment. The property must be owner-occupied and worth less than a million dollars. This insurance is only available for mortgages with amortization periods of 25 years or less.
- 5. Land Transfer Tax Rebates
The province, and some municipalities, levy a land transfer tax when you buy a new home.
For first-time homeowners, the province can provide a rebate of up to $2000. This is often enough to completely cancel out the taxes on smaller homes.
- 6. Home Buyer’s Plan
The Home Buyer’s Plan lets you “borrow” up to $50,000 from your RRSP to go towards buying a new home. It works by allowing you to withdraw your money without the normal taxes.
However, under the Plan, you have to pay back this money within fifteen years. It is only available if you have not occupied an owned home for at least five years.
If you’re looking to purchase a home for the first time, be sure to explore all your options to see if you can save while you spend.