Preparing to buy your fist home takes a lot of planning and research but is certainly one of the most exciting times in many people’s lives.   The goal of many first time home buyers is to find the right place, in the right location, for the right amount of money.  To assist you to achieve this goal successfully there are numerous tools and resources readily available to help you every step of the way.

The main elements involved in the home buying process include:

• Mortgage Pre-Approval
• Working with a Real Estate Professional
• Finding a Good Home Inspector
• Working with a Real Estate Lawyer

The first and most important step to successful home ownership is to ensure you are prepared financially.

Getting pre-approved for a mortgage will help you determine the amount of mortgage that you can afford. Some important points to consider when thinking about a mortgage pre-approval is your income level, your spouses income level, your down payment amount, your credit rating, the type of employment you have, and the length of your employment.

All of these key factors will be taken into consideration and help determine the type of mortgage you qualify for, the mortgage interest rate you will be eligible for, the amortization schedule, and also determine if you must pay mortgage loan insurance (usually if you have less than 20% of the purchase price as a down payment).

Other components that can make up a monthly mortgage payment is monthly mortgage insurance or sometimes called mortgage life insurance as well as property taxes. Note that mortgage life insurance is optional. And you you can make suitable arrangements with your financial institution or directly with the City to pay your property taxes. See the City of Ottawa’s Payment Options for further details.

Additional resources for first time home buyers:

• Are you financially ready? - CMHC
• Home buyers checklist – TD Bank
• Preparing to buy a home – Scotia Bank
• Buying your fist home – Royal Bank
• New Home Buyers – Ottawa-Carleton Mortgage Inc.
• Mortgage savings calculator – Industry Canada

Resources to learn more about your credit rating and how to improve your credit score:

• Credit report basics – Equifax Canada
• Home buyer’s checklist – TransUnion Canada
• Credit Score 101 – TransUnion Canada
• Give your credit a checkup – TransUnion Canada
• Credit report, credit score, credit rating – Industry Canada
• Improving your credit score – Industry Canada