You’ve cut back on lattes, taken a soul-crushing job on Burrard Street or 2nd Street SW, and borrowed from mom and dad. Congrats! You’re ready to put down a chunk of cash to cover the 20% downpayment on a property. But don’t make newbie mistakes, like trusting your bank to look after you. “The reality is that best rates are not always offered up front,” says mortgage broker Atrina Kouroshnia, 29, of Lavarates.ca in an email.
And don’t forget to look into subsidies, discounts and programs like the Home Buyers’ Plan for first-time buyers. Here’s what you need to know before you sign on the dotted line.
1. Putting every last cent into a downpayment
Hold on just a second. Tempting as it is to pour all your savings into a home, it may not be the best idea with today’s crazy prices.
“For our parents, it was normal to take out a $200,000 to $300,000 mortgage, whereas now first-time home-buyers regularly borrow $700,000 to $800,000,” says Brandon Wasser, a 29-year-old agent with Royal LePage in Toronto.