The housing market is always prone to change. One minute it can be up and the next it can be down. This can make it tough for first-time homeowners to navigate the market. New homeowners that aren’t knowledgeable about the housing market are at risk of overspending or getting taken advantage of. This is why it is important for new homeowners to educate themselves about the numerous ways they can save money.
Keep an Eye Open During the Open House
The open house is the first chance that a soon-to-be homeowner has to inspect a home. During the open house, watch out for any smells, stains or signs of damage. This can lead to expensive repairs in the future. If the house is free of these things, it may be worth pursuing. However, all soon to be homeowners should be aware that even though a house may look like it’s in good condition, there may be issues that can’t be seen by an untrained eye.
Distribute Your Money Efficiently
It is common knowledge that it is beneficial to put down a larger down payment on a home (as opposed to a smaller one). This is due to the fact that homeowners end up with a smaller mortgage. Many new homeowners aim to put down a minimum of 20% as it allows them to dodge the CMHC fee bullet.
Many homeowners consider using the Home Buyers Plan (HBP). The HBP allows first time home buyers to withdraw a large amount of money from their RRSPs. This tool allows homeowners to put down a large down payment, which in turn lowers the mortgage. However, it is important to remember that any money that is taken out of the RRSPs needs to be paid back.
Do Some Mortgage Research
Although 1% may not be a huge percentage, it can really make a difference when it comes to a mortgage. Anyone planning on purchasing a home in the near future should do some mortgage research. Be sure to use some online resources or contact a professional mortgage broker. They will have your best interests in mind and will be able to fight for the best interest rate possible. By doing this, a new homeowner can save thousands of dollars over the years they live in the home.
One of the most exciting points of a person’s life is when they buy their first home. However, it is also one of the most expensive times in a person's life. It is important for a new or soon-to-be homeowner to know how to save money during the buying process. This allows them to invest in their future. All new or soon-to-be homeowners should be observant during the open house, distribute their money efficiently and do some mortgage research.
For more information about the numerous ways that a new homeowner can save money, feel free to contact RE/MAX Hallmark for some professional advice.