How to Budget for a Home?
Monday Aug 21st, 2017Share
It’s easy to feel overwhelmed and confused by all the decisions that go into buying a new home in Canada, but if you are well prepared that can be reduced.
As I always say: If you want to buy a property tomorrow, start planning today!
Your budget plan should start two years before the offer day and that should be communicated with all the members that will be involved in this saving plan.
Here are few tips on how to budget for a home and be prepared for this important step.
Income and Expenses
First you need to add up your income, as an individual if you are the only contributor to this new home, or as a family. Then add up your recent expenses and expected expenses in the near future. This exercise will help you understand your budget and the type of property you should be considering and saving up to.
Finally plan to find means of extra income in the next two years building up to the day of the offer.
To check how to calculate your mortgage, click here and just take a look on how the mortgage calculation works.
No one can hide a bad credit in Canada, and a strong credit can give you stronger position when planning to buy a home. Building a strong credits starts by paying your bills on time, clearing your credit cards and reduce their balances to less than 30 percent of the credit limit on every account.
This is a very important step for a first time homebuyer; you must know every aspect of this great and important step. But be careful who is educating you, it is always recommended to check the credibility of the realtor and the experience.
Buying a home for the first time has different to-do-list, which can save you a lot of money and hassle.
Also, understand the market and your budget; know what you can afford and stud your needs before starting your search for a home. If you are a single person and you are looking for an investment, you would have a different budget and a
Where To Look?
If you have a family you most probably will be looking for qualities like the schools, parks and family activities. If you are single, you might be looking on fun attractions and things to do on the weekend for singles.
Understanding Toronto and the GTA, knowing the qualities of each city and municipality services gives a great insight at what suits you and your family best.
Keeping in mind of course the insurance and tax land in each area, that is added to your calculation and budget planning.
To talk more about you property options and for Free advices on how to buy your home, please feel free to contact Auday Zakko on 416.550.6362