As 2024 unfolds, Canadian homeowners find themselves at a crucial point in their mortgage – renewal time! In this article, I will explore the current dynamics of the Canadian mortgage market, what to expect when renewing your mortgage, and considerations to ensure a seamless process. If there’s a topic that homeowners are discussing in 2024…Read Article
Building Your Homebuying Team
Buying a property is a big deal. It takes many experts in your corner to ensure you get it right, active throughout the homebuying and mortgage processes.
There’s a substantial financial commitment, plenty of legal documentation, complex negotiations and, at times, stress. To ensure your homebuying journey runs as smoothly as possible, you’ll want to build a solid team of experienced professionals. They will provide you with expert advice and guidance along the way, predicting problems before they occur and solving them when they do.
The amount of involvement and interaction with each member of your homebuying team will vary, but they’ll all play an integral role in successfully steering you through the process. Here are five professionals you’ll want on your team.
1. Financial Planner
Working with a financial planner is one of the first steps you should take if you’re thinking of buying a home. This will likely be the largest purchase you’ll ever make, so defining your goals and creating a sound financial plan is critical.
Your financial planner will help you create a budget to pay down any outstanding debt, put money aside for your down payment and associated homebuying costs. They will assist you in establishing a good credit rating, which is essential in applying for a mortgage.
2. Mortgage Broker
As your mortgage broker, I work on your behalf to find the most suitable mortgage based on your unique needs. I’ll help you determine how much you can comfortably afford, assessing your debt-to-income ratio to set a realistic price range for your home purchase. My services are a popular choice for all buyers, but particularly for first-time homebuyers and non-traditional buyers. These include self-employed or low-income individuals.
One of the primary benefits of working with a broker is my access to multiple lenders, including banks, trust companies and credit unions. This empowers me to compare rates and products to ensure you receive the best option. As your broker, I’ll explain in plain-terms all the important features of your mortgage, helping to save you as much money as possible throughout your time as a mortgage holder.
While much of your preliminary house hunting will be conducted online, you’ll ultimately want to rely on the knowledge of a local housing expert to close the deal. A qualified real estate agent will help you locate your desired property and provide you with comparable data to determine current market values. They’ll coordinate house showings with sellers, effectively negotiating the terms and price you’re comfortable with and coordinating the final purchase transaction.
An Accountant is likely the least obvious member of your team. Buying a home is a complicated matter, and your accountant will ensure that you’re making smart financial decisions. They’ll help you understand how your new home may impact your overall financial picture and assist with all tax-related issues.
There are a number of government programs offered to homebuyers, particularly for first-timers, such as the First-Time Homebuyers’ Tax Credit and RRSP Home Buyers’ Plan, as well as Land Transfer Tax Refunds. These can provide tax benefits that will impact your income tax return. An accountant is a key player in helping homebuyers with unique financial and tax situations, such as those who are self-employed or have irregular income.
Your real estate lawyer will assist you with the complex legal matters associated with homebuying. This includes reviewing and preparing the significant amount of closing documentation, as well as conducting a title search to ensure there are no claims against the property.
In addition to verifying that property taxes are paid to date, your lawyer will calculate the land transfer taxes due at the time of closing, register and transfer the deed, and arrange for the transfer of funds. Your lawyer is also the person who will hand over the keys to your new home!
Your Homebuying Team
Surrounding yourself with the right professionals and trusting in their knowledge and expertise will help you successfully navigate the complexities of buying a home. This is essential for providing peace of mind throughout the entire homebuying journey.
Have questions about finding the right professionals for your team? Answers are just a call or email away!