Budgeting for First-Time Home Buyers

First Time Home Buyer

New home buyers are often so focused on getting that first mortgage that budgeting is sometimes overlooked. Many first time buyers are excited and forget to take into account the costs that are associated with buying a new home, so they stretch themselves too financially thin. It is extremely important to work out the costs involved in buying and owning a house and to calculate what you can realistically afford to spend on your new home.

Our experienced mortgage brokers can advise you and help you create an effective budget that will enable you to get the best Canadian Mortgage that suits your needs. In accessing our vast network of lenders, we will attain for you the best quote on a product that meets your needs and fits within your budget.

For first-time home buyers, the following costs should be considered when creating an effective budget:

  • Deposit - Ensure you can meet the costs required for a down payment. The deposit can be procured through a monetary gift, personal funds, or be borrowed.
  • Disbursements - Be sure to take into account legal, home inspection, tax, registration, insurance and home appraisal fees.
  • Mortgage Insurance - Consider mortgage insurance if you take out a high ratio mortgage of 75 per cent or more of the property value. Insurance premiums can be added to your loan, but you may have to pay application fees. (See: Partners in Planning)
  • House and Content Insurance - Include protection for your possessions and your new home investment.
  • Moving Costs - Ensure you can cover moving expenses. They can add up quickly. Take all potential scenarios and details into account.
  • Utility Bills - Anticipate connection fees as well as monthly and quarterly bills for your utilities. This might be a new expense for those who have been previously renting and were not responsible for utility payments.
  • Maintenance and Renovation - Plan for unexpected costs associated with unforeseen repairs and renovations in your new home. Leaks and breakdowns need to be considered as potential occurrences.
  • Miscellaneous Living Costs - Account for various other bills such as groceries, furniture, household accessories and vehicle costs.

Our professional mortgage brokers are trained to assess your details and offer professional advice regarding how much you may be able to borrow based on your budget, income, and the potential monthly repayments you will be making. We want to help prevent your new home purchase from stretching your resources too thin by finding a mortgage you are comfortable with and one that you can afford.

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