It’s happened: a new year has begun. For those who are ready to buy a home, 2022 will no doubt be memorable. If you fall into this camp, you want to ensure that you achieve the best possible outcome—a smooth purchase and the property of your dreams. This year, why not make a promise to yourself that you’ll take a few simple steps towards this goal?
Here are a few resolutions to consider if you’re planning to buy a home in 2022…
Save Up For That Down Payment
First and foremost, you’ll need to set aside the funds for your down payment. The amount you’ll owe will depend on the cost of the home you’re buying.
In Canada, if your property is less than $500,000, your minimum down payment will be 5 per cent of your purchase price. If it’s between $500,000 and $999,999, it’ll be 5 per cent of the first $500,000 and 10 per cent nf any amount above that. The minimum for a home over $1 million is 20 per cent.
Needless to say, no matter how much you pay for your property, you’ll have a lot of saving up to do for that down payment. If you believe you can reach this goal in 2022, here are just a few tips for doing it as quickly as possible.
Pay down your debts
It’s hard to make strides when you’re in debt. Start by paying down the ones that have the highest interest rate, since they’ll take the biggest bite out of your potential savings.
Cut down your costs
From ordering takeout less often to parking one of the family cars for a while to save on insurance costs, determine where you can trim down your spending.
Set up automatic savings
Consider setting up a dedicated bank account and having a certain amount automatically deposited into it from each paycheque.
Try to grow your income
Are you in a good position to ask for a raise or do some freelance work? Selling valuable items you could live without (like that second car mentioned earlier) can also bring in some cash.
Gearing up to purchase a home? Learn more about how to do so successfully by checking out some of our favourite buying blog posts.
- Your Guide to Buying a Home
- How Buyers Can Find Success in a Hot Seller’s Market
- Home-Buying Conditions: Should You Include Them in Your Offer
Talk To Your Financial Advisor
A piece of property may be the biggest investment you ever make, so seeking out financial expertise just makes sense. Your lender will tell you how much you’ll likely be approved for, but that’s not the same as knowing how much you can afford if you have other financial goals in mind.
When do you hope to retire, and do you want to help put your kids through university? What would happen if you found yourself unemployed in the near future—and your home’s value suddenly dropped?
It’s all about knowing which steps to take so you can achieve positive outcomes and creating contingency plans to avoid negative ones. The property you buy will have an impact on it all, which is why talking to a professional who can help you think ahead and run the numbers is so helpful. For this reason, you may want to consider talking to an expert this year.
Get Mortgage Pre-Approval
While many buyers forgo it, mortgage pre-approval is very important. For one thing, it matters to sellers. They want to know you can afford their home, that you have your ducks in a row, and that you’re serious about buying. Having a lender comb through your finances to tell you how much you’ll likely be approved for shows sellers you’re prepared.
Mortgage pre-approval can also help you determine how much home you can afford and start planning for future payments. That said, this amount should be used as a starting point. You know your ongoing financial situation better than anyone, and you should take stock of all the factors involved when you’re budgeting.
As a concrete first step towards buying a home, why not resolve to obtain mortgage pre-approval? If you need help finding a lender you can trust, ask a trusted local real estate professional.
Ready to start looking for your next home? Our listings represent some of the best in West Toronto. You can see what’s currently on the market right here!
Create A Property Search
If you’re starting your search for a home this year, you probably have a pretty good idea of what you’re looking for. But most buyers find that when it comes time to narrow down their criteria, there’s a lot more to consider than they thought.
Before you start searching, think beyond your budget, the number of bedrooms you’re looking for, and your ideal neighbourhood. You’ll want to take it a step further by considering the features you consider must-haves versus those that are nice-to-haves.
You may also want to extend your search beyond your dream community. Doing so will allow you to expand your pool of potential properties—and find fantastic homes at different price points. Fortunately, an experienced agent can help you find several neighbourhoods that you’ll love.
Once you know what you want, it’s time to create a search of the MLS (a massive database that brokers use to share property info) for homes that match. From there, your best bet is setting up notifications to alert you as soon as potential matches come on the market! Your real estate agent can give you all the details on the incredibly useful step.
Are you buying a home in 2022?
If so, this year could be one of the best you’ve ever had. To ensure a great outcome, planning ahead is key. Taking a few simple steps can help you prepare, but the first one you’ll likely want to consider is finding a real estate professional with buying expertise! We’d be happy to help you make your 2022 home-buying dreams come true.
If you’re ready to start your buying journey, get in touch to start a discussion with our team today!
