Buying a home for the first time can be daunting, and so can buying for a second, third or fourth time. At Royal Home Team, we understand the apprehension in buying a home, which is why we walk all of our clients through the process from start to finish, and provide our knowledge every step of the way.
What Do First Time Buyers Need To Know?
But you may have a few, very important questions right from the start such as:

How much money do I need for a downpayment?

  • What do I need to know about getting a mortgage?
  • Are there Investment Seminars so I can learn where my money goes when buying a home?
  • How Much Money Do I Need For A Downpayment?
  • One of the most common questions in Real Estate we get from buyers is, “How much money do I need for a downpayment?” Previously this answer was a bit more straightforward–you could put down any amount. But as of February 15 2016, the Real Estate Market changed in the way buyers could make down payments. Now, down payments sizes are dependent on the price of the house.

This breaks down into three categories:

  • If you purchase a house $500 000 or less, your minimum down payment must be 5%
  • If you purchase a house $500 000 – $1 million, your minimum down payment must be 5% minimum of the first $500 000, and then 10% of the remaining sum of money
  • If you purchase a house over $1 million, your minimum down payment must be 20%

Knowing what type of home you can afford partially comes down your downpayment, but it also will involve your mortgage.

Planning Your Mortgage

When choosing a mortgage option that is right for you, planning for the future is an important aspect. Having a mortgage broker walk you through your options can help ensure you choose the best possible solution to fit your specific needs.

Know what your five-year plan is, and from there you can choose the mortgage that allows you to achieve your goals. Don’t get caught up in low rates, sometimes going with a rate that is a couple points higher will save you thousands of dollars in future fees. Chose an option with good pre-payment privileges or mortgage portability, giving you more flexibility.

Learn how to control your mortgage payments and use them to your advantage when choosing your mortgage options. Take a look at the frequency of payments and amortization period to get the most for your money. Be aware of your payment options when choosing between a fixed and variable rate and pay as much as you can toward your principal mortgage amount to save yourself money on interest payments.

Finding the right solution takes time and knowledge. At Royal Home Team we will take the time to find the mortgage that fits your needs and give you confidence in your home ownership goals. If you are interested in learning more about Mortgages and affordability, please ask us about Investment Seminars, and check out our Affordability Calculator.

What About Relocating?

Relocating is a little bit different than buying your first home. Relocation assumes that you already have a mortgage and own a home and are ready to sell and relocate to a new area of Guelph or to a whole new city like Kitchener or Waterloo. The process for relocating and selling a home varies depending on what you need to do with your property in order to get it in the Real Estate Market in Guelph.

What Are Foreclosures?

In a nutshell, foreclosures mean that the current owner of the home has not been able to finance the home and the bank (or the mortgage lender) and is looking for a buyer to essentially purchase their home and take on the mortgage.

Buying a foreclosure home often gives buyers a real benefit in terms of how much they’ll need to pay to get the home and what the process is like. In a scenario of foreclosure, the lender of the money (usually the bank or the mortgage company) will need to give the buyer a pre-approval that they can show to the seller, saying that the buyer is actually able to mortgage the home. In circumstances where cash is paid upfront, this may not be necessary, however, most buyers will need the letter of pre-approval as proof that they can actually finance the home.

At Royal Home Team, we can assist buyers in the process of purchasing a foreclosure home. The work that goes into a foreclosure home may extend beyond making the home purchase. We also provide services in renovation projects or can offer suggestions for tradespeople in the Guelph area.

Custom Homes and New Home Construction

If you’ve been scouring through Real Estate Listings in Guelph and aren’t finding EXACTLY what you had in mind, maybe that’s because it’s not yet built! Royal Home Team can help clients get right into the foundations of home buying, quite literally. With our knowledge of Guelph’s latest developments and new home construction projects, we can show our clients options for pre-construction and custom homes. Buying a custom home or starting with a new home construction is quite exciting, but there are certain property laws and building rights you should know about in addition to getting a mortgage for your home and maintaining your home.

For more information about any areas of buying and for specific inquiries into homes in the Guelph Real Estate Market, please don’t hesitate to contact Royal Home Team.