Buying a home in Canada can be intimidating. Find out how you can avoid the most common mistakes that home buyers make.

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It can be quite tempting to go it alone when you’re thinking about buying a home in Canada. Some folks don’t want to pay extra to work with a professional realtor, or are unwilling to hire a mortgage broker to help them through the home buying process.

However, professional help is the best way to ensure that you make a good investment, and avoid common home-buying mistakes. In this article, we’ll examine a few of the biggest mistakes that first-time home buyers make, especially when they choose not to work with a professional.

1. Not Knowing What You Can Afford

Affordability is absolutely essential when you’re buying a home in Canada – and this is one of the main reasons why hiring a mortgage broker is such a good idea.

If you end up purchasing a home that’s too expensive, you risk having a monthly mortgage payment that you simply can’t afford. If you’re delinquent on your mortgage for too long, you’ll lose your house – and any money that you had already paid towards your mortgage.

On your own, it can be quite difficult to understand how much you can spend on a home purchase. A mortgage broker will take you through a comprehensive mortgage qualification process and you will be presented with figures that show exactly how much you can afford to pay for your home.

2. Failing To Account For Additional Expenses

Homeowners have a lot more monthly expenses than renters – and if you’re buying a home for the first time, you may not be considering these expenses.

You’ll need to pay for:

•     Property taxes
•     Homeowner’s insurance
•     HOA fees (if applicable)
•     Home repairs
•     Mortgage insurance (for low down-payment mortgages)

When buying a home, you’ll also have to pay taxes, closing costs, and more. Many first-time homeowners are not aware of all of these costs and fees – and end up biting off more than they can chew.

3. Being Too Picky

When buying a home, it may seem like a good idea to wait until the perfect house falls into your lap. After all, why should you invest in a home that’s not perfect for you?

On the surface, being picky about the house you buy makes sense. But in reality, you’re going to have to make a compromise at some point. If you don’t, you’re going to continue renting for months, or even years instead of using that money to pay down a mortgage, build equity, and truly invest in your future.

We aren’t suggesting that you should purchase the first home you come across. But it’s important to realize that it’s sometimes okay to compromise and purchase a house that’s not perfect – because with a little bit of extra time and energy, it can still be a wonderful home for you and your family.

4. Neglecting Inspections

There are dozens of expenses involved with buying real estate – and some folks choose to skimp on inspections in order to save a few dollars. But this is a horrible mistake.

Paying a few hundred dollars for a comprehensive home inspection can help you find issues that may not have been disclosed by the seller. In turn, this may end up saving you from purchasing a home that’s in poor condition, or that requires significant repairs and renovations.

Don’t ever neglect inspections. Even if a seller says they have already had an inspection performed, hire your own inspectors – and make sure that you’ve got a comprehensive understanding of the condition of the property.

5. Choosing To Buy A Home Without A Real Estate Agent

Some first-time home buyers choose to avoid using a real estate agent because they want to save money, and don’t want to pay commission fees.

But real estate agents have their jobs for a reason. When you hire a real estate agent, you’re hiring someone who has your best interests in mind – and who can guide you throughout the entire home buying process. Real estate agents make it easier for you to do things like create contracts, hire inspectors, and view homes.

If you don’t hire a real estate agent, you’re going to have to struggle through the home buying process alone, or rely on the seller’s real estate agent to guide you. Either way, you may end up getting a bad deal.

6. Not Accounting For The Future Of Your Property

A property which looks like a good investment at the moment may end up being a poor long-term choice. Of course, you can’t perfectly predict what will happen in your chosen city or neighborhood.

However, you should still ask yourself some basic questions about your prospective property, such as:

•     Do other homes in the area seem well-maintained?
•     Are home values in the neighborhood declining?
•     Is your prospective property in a historically good school district?
•     Is there undeveloped land nearby which may be developed in the near future?

This is another reason it’s helpful to hire a real estate agent. Real estate agents have the best knowledge of each neighborhood in which they operate – and they can steer you towards properties that will end up being better long-term investments.

7. Choosing To Purchase A Home Without A Mortgage Broker

Buying a home without a mortgage broker means that you’ll have to do a lot more legwork. You’ll have to assess your own finances, find banks who are willing to lend to you, apply for loan pre-approvals, gather your own documentation, fill out multiple mortgage applications – it’s a very involved process.

However, if you hire a mortgage broker, you can avoid all of this legwork. A mortgage broker helps you assess your finances, and can take care of every step of the mortgage application process for you. In addition, because mortgage brokers usually have great relationships with local lending institutions, you can often secure a better rate with a mortgage broker than you could on your own.

For these reasons, we highly recommend that you use a mortgage broker when buying a home. Thankfully, you already know a top rated mortgage broker with over 10 years of experience who can help you get started on a mortgage application today.

Buying a home in Canada can be intimidating. But if you avoid these common mistakes, and hire professional help, you are setting yourself up for future success!

We are here to help. Contact us today for a free no-obligation consultation.

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