(NC)-The Canadian housing market has moved from a seller's market to a buyer's market. There are fewer multiple offers and less competitive bidding, creating an opportunity for the educated, informed house hunter to enter the housing market.
"From my experience working with first-time homebuyers, one of the biggest challenges is trying to make sense of it all," said John Turner, director mortgage sales at BMO Bank of Montreal. "There's an abundance of information, and confusing data that leave prospective buyers uncertain about where to begin."
Before making the decision to get into the market, here are a few tips you may want to consider:
1. Practice makes Perfect
Consider the time prior to your purchase as a dress rehearsal for the mortgage. For example, if you currently pay $800 a month in rent and your anticipated mortgage will be $1,200, put the $400 difference into savings. In just one year you'll have almost $5,000 more for the down payment.
2. Put together an All-Star Team of Experts
Include a mortgage specialist, realtor, lawyer and others who can help you through your house hunt.
3. Know before you Go
Get a pre-arranged mortgage which allows you to shop with confidence, knowing how much you can afford to borrow.
4. When you get Paid, Pay your Mortgage
If you receive a bi-weekly paycheque you can accelerate your mortgage payment by aligning it with your pay. This will help you pay down your mortgage faster, and save interest costs over the long term.
First-time homebuyers should also consider getting a copy of the BMO First Home Essentials kit - a new guidebook with all the information, tools and resources needed to search for and purchase your first home. You can order one online at www.bmo.com/firsthome.
"Being prepared and informed will make for a smoother transition from tenant to owner," concludes Turner.
- News Canada