Home buyers who wish to become homeowners can apply for a Home Buyers Plan from the Canadian Mortgage and Housing Corporation (CMHC). This plan can be used to purchase both new and resale homes in Canada. In order to apply for a Home Buyers Plan, a home owner will be required to meet a number of eligibility requirements. To participate in the Home Buyers Plan, an individual must meet a number of eligibility requirements:
You should be a current resident of Canada. That means that you should have been a resident for at least two out of the last five years. Otherwise, the property you wish to buy cannot be your primary residence. Otherwise, you should be a first time home buyer. If you are a recent home buyers, you should be at least eighteen years old, and own a real estate license in Canada.
In addition, buyers who do not yet own their homes but are interested in buying one will need to contact sellers to determine if they qualify for a mortgage. Most sellers eligible for a mortgage include: first-time home buyers, investors, owners in real estate transactions involving multiple units, tenants who occupy rental units and homeowners. For all other sellers, a mortgage lender or real estate agent will be required to provide information on the standard closing costs.
Most mortgage companies and real estate brokers require potential buyers to receive Home Buyers Program (HCP) or first-time home buyers education. If you decide to purchase a house through CMHC, your lending institution will require that you attend a mortgage home buyers’ education workshop. The workshops usually last for one or two days. You can find out more about the Home Buyers Program in your local area through the CMHC office or by visiting their website.
One important aspect of the recent home buying process is the preparation of a financial budget. This includes listing the prices of the property, documenting income and expenses and creating a cash flow plan. The cash flow plan is designed to guide future spending and ensure that debt repayments are manageable. The cash flow plan is an important tool to help potential buyers understand the real estate market and to know how to manage their financing. This plan should be reviewed periodically to ensure it is still feasible.
When it comes to finding a realtor, it is advisable that potential buyers visit a few different ones. When interviewing potential home sellers, ask them what type of professional they would prefer to work with. For example, do they prefer to work with a new buyer agent or a Realtor who has experience working with first time buyers? What are the top five most-wanted types of transactions? Once you have decided on a realtor, ask him/her to provide examples of their work and examples of the type of clients they tend to attract the most.
The real estate agent you choose should also have specific examples of their work. If a seller already has a portfolio of their completed sales, use it to screen potential buyers. First time home buyers often face difficulty when determining how much they can afford. In addition to asking for a listing price in your budget, the real estate agent should also provide examples of comparable homes sold in the area for sale by the same seller within the last five years. These examples will help the buyer narrow down his/her search for a home.
As the list of the top five most-wanted types of transactions becomes longer, research your realtor. Make sure your chosen realtor is well-versed in these categories. Being familiar with them will ensure that the buyer’s search is more efficient. Real estate agents are professionals who have knowledge of a variety of transactions. Make certain your chosen agent is well-versed in your chosen field.