Using your RRSP for a Down Payment? Read this!

If you're like many of us, wading through all the rules on RRSPs, the federal Home Buyer Plan, and the like is sure to put you to sleep.  Here's a great article that gives you the scoop on the rules around RRSP withdrawals for your down payment.  And it's in plain English! 

How to buy the perfect home (For you. For right now.)

So, you’ve decided to buy a home? Congratulations!

When my husband and I were house-hunting, it was such an exciting time. We looked for almost 2 years before we found a place we fell in love with (our real estate agents had the patience of saints!). The reason it took so long was: a) we kept thinking prices HAD to go lower – which they didn't, and b) there was a slight disconnect in what my hubby and I were prepared to live with – I would have been okay with a fixer-upper, but my hubby was totally NOT okay with a fixer-upper. As it turns out, we ended up somewhere in the middle.

Being fairly analytical types, we had a list of ten “must-haves” for our house:

1. Within certain price range
2. Maximum commute time from work
3. Four bedrooms
4. Two-car garage
5. Lots of space between us and neighbours
6. Neighbourhood with character
7. Backyard for kids to play in
8. Lots of windows
9. Basement that my 6’2” husband didn't have to crouch in
10. Within walking distance of good school

In the end, we got almost everything we wanted from our list, although we did go over on # 1. You’ll notice that one thing was not on our list – a big modern kitchen. That is why we are now considering a pain-in-the-neck kitchen reno. Anyway, I digress.

Here are my recommendations for finding the perfect home:

1. Decide on your top ten “must-haves” and rank them in order of priority. Doing some research on helpful sites such as CMHC.ca and Genworth.ca will get you thinking about points you might not have considered. Check out CMHC’s “Homebuying Step by Step” guide as well as their great home features checklist.

2. Get pre-approved for a mortgage. A good mortgage specialist will help you develop a mortgage plan. This gives you several key pieces of information. Not only should you understand exactly how much you can qualify for, but you should also get advice on whether you need to fix anything credit-wise to get the best mortgage rates, and whether you need to increase your savings for down payment and/or closing costs.

3. Connect with a great real estate agent. If you don’t already have one, ask around for recommendations. A skilled real estate agent will sit down with you and provide guidance on where in the city you can get a home that fits with your budget and your requirements. Be sure to keep the lines of communication open, so that after every viewing, you can provide feedback on what you liked and didn't like about the place. This can save you a lot of time and effort.

4. Make your offer. Your real estate agent will guide you here as well, based on their experience and understanding of the market. Make sure to include clauses in your offer to give you time to finalize your financing and to get a home inspection.

A little planning can go a long way to relieving any stress associated with this big step in your life. Take your time in doing the research, talk to friends and real estate professionals, and then, trust your instincts. And make sure that you take a good hard look at that kitchen!


Photo credit: [c] Miroslav Vajdic for openphoto.net

Home and Mortgage Essentials - October 2011

Click the newsletter image at left to see our October 2011 issue of Home & Mortgage Essentials. This month, it contains tips and mortgage solutions for freelancers, as well as the latest Canadian housing market overview.

After clicking, click again if you would like to enlarge the image further.

If you would prefer a pdf version, email me and I'll get one to you.

Happy reading!

Renewing your mortgage? Read this first!

Think of your mortgage renewal as a valuable opportunity. It's a chance not only to take advantage of today's great rates, but also get a mortgage product that better fits your current needs.

When you receive a renewal notice from your current lender, don't simply sign it without knowing all your options. If you do so, you could be paying a higher rate than you need to, and end up with a mortgage that might not be best suited to your requirements.

Often, by the time your mortgage comes up for renewal, you are most likely in a different financial position than when you first obtained it. As our financial and life circumstances change, so does the mortgage product that is best for our needs and goals. For example, you may wish to access your home's equity to consolidate other debts (especially high interest credit card debt), or perhaps help pay for a renovation or investment property.

So make sure to review your options thoroughly. Feel free to call me to discuss your situation. We can discuss your interest rate options, and help you with a customized mortgage strategy.

At renewal time, take the time to ensure you get the most from your financing. We can speak to any concerns you may have about interest rate trends and advise you on what to do as your mortgage renewal approaches.





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Photo credit: Thanh for openphoto.net