Real Estate

First time buyer tips?

  • Last Updated:
  • Jul 25th, 2020 2:34 pm
[OP]
Newbie
Jul 23, 2020
7 posts
6 upvotes

First time buyer tips?

Hello,

I am looking to purchase my first home with my long time gf. We have a real estate agent that is a family friend looking and helping us find something suitable. Here are a couple things we are looking for and maybe somebody can help me out with some tips.

Looking to hopefully move to the Guelph area and commute to work until eventually finding something more convenient.

Not sure if we should just go to her bank(RBC) and sit down and get a pre approval with them and use them or try to shop around for a low mortgage rate?

Ideally looking for something we can make the 20% downpayment on if at all possible.

Is there anything we need to know or just overall helpful tips that can make this process easier and less stress?

I am open to hearing suggestions in DMs as well.

Thanks in advance.
10 replies
Deal Addict
Jan 5, 2020
1053 posts
1512 upvotes
I stopped reading after the first sentence.

My advice is to not buy. You shouldn't buy real estate with someone else other than your spouse.
[OP]
Newbie
Jul 23, 2020
7 posts
6 upvotes
Newuserid wrote: I stopped reading after the first sentence.

My advice is to not buy. You shouldn't buy real estate with someone else other than your spouse.
Thank you for your suggestion. We have been together for 7 years and been living together for 3. We will be fine.
Jr. Member
Apr 25, 2017
178 posts
137 upvotes
I think getting a mortgage pre-approval is a good idea - that should give you an idea regarding your max budget. You don't have to go with your main bank - you can go with any FI for your mortgage. Use Ratespy to check the latest rates.

You can use housesigma/bungol to narrow down the listings and find comparable. If you're planning on using your RRSP for part of your downpayment (HBP) - make sure you have the money deposited for 90 days. Good luck!
Member
Mar 26, 2015
234 posts
98 upvotes
Richmond, BC
I'd start by understanding the market, looking around at what your needs are and what you guys like and working towards something you both like.

rates move all the time and it wouldn't be hard to understand the lowest rates that you guys probably would find, theres a thread on this forum to ask for good mortgage rates and you should aim to get that if you have a decent credit.

The more informed you are, the better.

It'll also be easier to set up a HELOC on initial go if you don't fully utilize your mortgage - if thats what you're looking for.

Just google around it's fast :D
[OP]
Newbie
Jul 23, 2020
7 posts
6 upvotes
tmostafiz wrote: I think getting a mortgage pre-approval is a good idea - that should give you an idea regarding your max budget. You don't have to go with your main bank - you can go with any FI for your mortgage. Use Ratespy to check the latest rates.

You can use housesigma/bungol to narrow down the listings and find comparable. If you're planning on using your RRSP for part of your downpayment (HBP) - make sure you have the money deposited for 90 days. Good luck!
Will for sure check out ratespy and housesigma. Had only been using bungol and other websites up until now.

Thanks for the help.
Deal Addict
User avatar
Jan 2, 2012
4405 posts
2579 upvotes
Toronto
Phydeaux011 wrote: Thank you for your suggestion. We have been together for 7 years and been living together for 3. We will be fine.
In this case she is legally your common-law partner, not your gf. Hopefully you have both been filing taxes (where common-law is 1 year living together) as common-law the past several years, and not as singles.

If you buy a home together, you need to create a cohabitation contract, which will document what amounts both of you are contributing to the home purchase and what will happen in case of separation, who gets what share of home sale, etc etc. Even though you would be legally common-law in Ontario (living together 3 years), family law in event of a separation is quite different vs a married couple i.e. there is no matrimonial home.

A pre-approval from a bank is not a commitment to use that bank for future mortgage, nor is it a guarantee of getting the mortgage when the time comes. It will basically just gives you an idea of max you can afford, and can lock in a rate for you. After you actually get an offer accepted on a home (with a financing condition included) you can go with whatever lender you like to get your mortgage. It definitely doesn't need to be the bank you have your chequing acct with. Talk to a mortgage broker to see what lender can offer you the best rates/terms on a mortgage, as that is the most important factor.
Last edited by rob444 on Jul 24th, 2020 11:47 am, edited 1 time in total.
[OP]
Newbie
Jul 23, 2020
7 posts
6 upvotes
gahafa wrote: I'd start by understanding the market, looking around at what your needs are and what you guys like and working towards something you both like.

rates move all the time and it wouldn't be hard to understand the lowest rates that you guys probably would find, theres a thread on this forum to ask for good mortgage rates and you should aim to get that if you have a decent credit.

The more informed you are, the better.

It'll also be easier to set up a HELOC on initial go if you don't fully utilize your mortgage - if thats what you're looking for.

Just google around it's fast :D
Yeah we've been looking around since February just casually. We both have excellent credit so it shouldn't be that much of a problem.

I will be looking into a HELOC today and see if it's something we should explore.

Thanks a lot!
Deal Guru
User avatar
Feb 2, 2014
10296 posts
2998 upvotes
Toronto
Phydeaux011 wrote: Hello,

I am looking to purchase my first home with my long time gf. We have a real estate agent that is a family friend looking and helping us find something suitable. Here are a couple things we are looking for and maybe somebody can help me out with some tips.

Looking to hopefully move to the Guelph area and commute to work until eventually finding something more convenient.

Not sure if we should just go to her bank(RBC) and sit down and get a pre approval with them and use them or try to shop around for a low mortgage rate?

Ideally looking for something we can make the 20% downpayment on if at all possible.

Is there anything we need to know or just overall helpful tips that can make this process easier and less stress?

I am open to hearing suggestions in DMs as well.

Thanks in advance.
You don't need to shop around for a mortgage at this point. The best rates are for approvals only (after you have an accepted offer).

If you've already been pre-approved for a mortgage, you're good to go for now.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
May 18, 2007
303 posts
577 upvotes
If you are buying, try to get 1 to 1.25% cash back from your agent. If your agent refuses, you can find one who is willing. But note you get what you pay for so be prepared to do bit more work yourself like looking online for listings and sending the to your agent.
Banned
User avatar
Feb 12, 2019
69 posts
67 upvotes
Guelph houses are +500k, so you together need more than 100k in savings minimum for a 20% down payment. And your income should add up to at least 80k per year to quality for a 400k mortgage.

To get lowest rate mortage, find a mortgage broker that does that job for you.

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