The prospect of owning a home can be can be overwhelming to most of us. That is why I have developed these simple steps, which can guide you on how to get started.

 First, you have to decide what you can afford for a mortgage. You may have a number in mind but so does the bank. To find out what the bank will allow you to spend on a monthly bases click here and follow the instructions. The following information may be helpful when using the affordability calculator.

Use one of the 5-year rates posed here. You can get one of the lower rates when you get a mortgage but you will qualify based on the 5-year rate.

For the lowest payment use 35 years for your amortization.

Property taxes are roughly $90/month for every $100,000 of house. This is a very rough estimate and will change when you select a specific property.

Use $120/month for heating costs.

If you have any questions please feel free to e-mail me at nwilson@sutton.com

Curious to see what you can afford? start with myhousewatcher

Please contact me at 905-681-7900 or nwilson@sutton.com for a comprehensive plan which includes credit restructuring, RRSP loans, Income tax rebates, tax savings accounts, no money down options and much more, to get on the fast track to home ownership.

Looking at rent to own? click here to learn more.

Items you should be aware of:

Closing Costs

Closing costs include lawyer's fees and adjustments (from .5 to 1% of  the value of your purchase) and land transfer tax (about 1 % of the value of your purchase)For example a $250,000 home would have closing costs of $3750. (1.5% of 250,000).First Time Buyers receive a land transfer tax rebate of up to $2000

Mortgage Insurance

If you put less than 20% down on your purchase your mortgage has to be insured. CMHC and Genworth insure most mortgages in Canada. Insurance rates are between .5 and 2.5% of your mortgage amount and are added on to your mortgage. For example a $250,000  mortgage , with a 2% mortgage insurance premium would be $255,000($250,000 +$5000)

R.R.S.P.s and the Home Buyers Program

You and your spouse are currently allowed to use up to $25,000 each in RRSPs towards a home purchase. In most cases the RRSP must be held in the RRSP account for a period of time(usually about 3 months)