No Time Like the Present to Buy a Home
If you are tired of renting and have always wanted a home of your
own, now is an excellent time to take the home ownership plunge.
Attractive mortgage interest rates, government incentive programs
and an excellent supply of homes for sale are making the dream
of home ownership possible for more would-be buyers.
Consider Using Your RRSPs
You may want to take advantage of the RRSP Home Buyers' Plan.
The program allows you to use your Registered Retirement Savings
Plan (RRSP) contributions (up to $20,000 per person, $40,000
per couple) to buy or build a home. You must be a first-time
buyer or at least not have owned a principal residence for
four
consecutive years in order to qualify under the plan. Remember,
no income tax is deducted from these funds as long as they
are repaid to an RRSP according to the government's repayment
schedule.
Different mortgages
A number of different mortgage options are available. Under a
conventional mortgage, lenders will loan you up to 75 per cent
of the appraised
value or purchase price of the property (whichever is lower)
to a maximum set by government regulation and you must come
up with the remaining 25 per cent yourself. If you don’t have
the 25 per cent down payment, a high-ratio mortgage may be available
that could provide most if not all the required funds. The proviso
is that high-ratio mortgages must be insured and the cost falls
to you. Check with your lending institution or mortgage broker
to see whether you would be eligible for such a mortgage.
Variable-rate mortgages are usually offered for both conventional
and high-ratio mortgages. If interest rates climb, you will be
paying more per month in interest; if rates drop, you will be paying
more off your principal. Fixed-rate mortgages, on the other hand,
maintain the same rate of interest over the entire negotiated term.
Examine Your Needs
It is never too early to start considering where you would like
to live and the type of house that best suits your needs. This
is where a REALTOR®'s services prove invaluable.
REALTORS® have access to the Multiple Listing Service® (MLS®)
which is a co-operative listing system that offers maximum exposure
of homes listed for sale. A REALTOR® can help you zero in on
the type of home you want with a quick search on the computer.
Once you have defined a few key parameters like price, location
and number of bathrooms, a REALTOR® can provide you with a
customized list to assist you in your search.
Defining your focus is important because there are plenty of housing
options available in the Greater Victoria area. You will have to
choose the property that is right for you from among new houses,
resale homes, townhouses and condominiums. A REALTOR® is a
highly trained professional who can help you choose the one that
best suits your current and projected lifestyle. A REALTOR® will
accompany you as you view homes and provide you with all the pertinent
information to make an informed decision.
So, if you are ready for home ownership, now is a good time. Many
Canadians would agree that owning a home is one of the best investments
you can make and helps provide financial security for retirement.
This information about buying and selling real estate in Victoria British Columbia is
provided by the Victoria Real Estate Board for the information and benefit of consumers.
