Government Grants For the First Time Home Buyer Get The Money
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If you're a first time home buyer, it's very important to learn about the mortgage purchase process before you start looking at online mortgages. Even though the process of buying a mortgage isn't exactly the same as the traditional method, there are enough similarities that you'll benefit from reading all you can about the subject.
Buying a home - your first home - should be a very exciting experience. Just keep in mind that it is a complex process that involves some important steps that you cannot ignore. By using these easy tips to guide you in your home buying process, you can save yourself time, money and stress. Being a first time home buyer does not need to be intimidating - it should be fun - so just be prepared and take advantage of the services available to you to make it so!
Secure the services of a real estate agent. These professionals will be able to help take the hassle out of buying a house that meets your needs/wants, and save you the time of having to wade through all of the real estate listings out there. Go to open houses and look at different properties, and always keep in mind that as a first time home buyer no house may seem perfect - but it may be the perfect house for you!
Make sure that you have thought about - and saved - a down payment. "No down payment" mortgages are available, but in order to secure a low interest rate and to decrease the amount of your monthly mortgage payment, having a down payment is essential when buying a house. Look at the different options available to you in order to amass that down payment, including saving or the RRSP Home Buyers Plan, which allows first time home buyers to use up to $25000 tax free from your RRSP to purchase a home.
So where can the money for your down payment on a house come from? As a Santa Clarita first time home buyer you have many different options as far as putting together a down payment on a house. Obviously saving a certain amount from every paycheck is a valid option - but it is not the only one. One of the ones that is quite appealing for Santa Clarita first time home buyers is to take advantage of the RRSP Home Buyers Plan, which allows Santa Clarita first time home buyers to use up to $25 000 from their Registered Retirement Savings Plan, tax free. Another source is a gift from a family member - but it has to be a gift, it cannot be a loan.
As a Santa Clarita first time home buyer, the purpose of a down payment on a house for you is to pay some of the mortgage up front. Whatever the amount of your down payment is, that amount is taken off of the total mortgage price, meaning that you are required to pay less over time.
So what are the benefits of a bigger down payment on a house? There are a few. The first, and most obvious, is that a bigger down payment means a lower monthly payment. If you are a Santa Clarita first time home buyer this can be crucial because it decreases your overall monthly carrying costs - which can mean a higher chance of mortgage approval and less financial strain in the future. It also means that, since you are borrowing less, you are not paying as much interest. A further benefit of a bigger down payment on a house is that your CMHC insurance premium, calculated as a percent of your mortgage amount, decreases as your down payment increases.
