Whether you’re a first time home buyer or have purchased a property before, buying a home is a major decision in your life. Here are a few tips to help you plan and prepare for your big purchase:
Location, location, location
Proximity to work or school is an important consideration when you are choosing your home. Also look at distance to amenities and access to public transportation.
A growing home
Consider the size of your home to ensure it will accommodate your current and future family needs. Think about whether you’ll need room for a growing family or relatives coming to visit or stay. Review a checklist of suggested criteria
Explore your options
It’s best to explore mortgage options before putting an offer in on a property. A CIBC Mortgage Advisor can help you understand your choices. Request a call from a mobile mortgage advisorOpens a new window in your browser.
Get what you need
Gather essential documents you’ll need for your mortgage application. Here’s a checklist of required mortgage documents (PDF, 70 KB) Opens a new window in your browser..
Remember, as a newcomer, your financial institution may require additional documents to verify your past employment and education, especially if you don’t have an established credit history in Canada.
Find the funds for a down payment
There’s different sources you can dip into for your down payment. For example, you could take advantage of the Home Buyer’s PlanOpens a new window in your browser.. It lets you withdraw up to $35,000 per person from your (RRSP).
If you plan to use a gift, you need a signed document from the giver for non-repayment and you’ll need to secure a transfer of funds statement as proof.
Don’t forget closing costs
Remember to set aside extra funds for the closing costs. You should expect to spend between 1.5% and 4% of your home’s purchase price on costs such as legal fees, taxes and mortgage default insuranceOpens a new window in your browser..