By Nina Dragicevic

As a realtor within the Halifax market, Sandra Pike estimates lower than half of consumers she sees are literally prepared to purchase a house. Many have among the items in place, however not the complete suite.

“Loads of them say, ‘Okay, I’ve decided’ and check out homes,” stated Pike, from The Pike Group at Royal LePage Atlantic. “And folks wish to write affords after which go get their financing in place.

“However as a first-time homebuyer, in the event you write [an offer] on one among my listings, I’m asking in your letter of approval. And if I don’t have it, I don’t wish to take a look at your provide. I don’t wish to put my very own sellers in conditional purgatory, ready so that you can get your financing collectively.”

Along with having a down fee, Pike defined, consumers must be working with an skilled mortgage dealer who may also help them with debt service ratios, and decide what they will truly afford. They need to have a pre-approval — not only a pre-qualification — an important credit score rating, and a funds for every thing else: closing prices, inspections, transferring, insurance coverage, and furnishings.

“We had somebody the opposite day who wished to buy,” Pike stated. “She had $250,000 in money — however actually horrible credit.” This potential purchaser was unable to acquire financing.

Earlier than the seek for a brand new house, consumers ought to have some stability of their careers and the readiness to just accept a significant new accountability, stated Robert Saunders, CEO of Ownright, a service that helps homebuyers with the authorized and logistical aspect of closing on a property.

“My recommendation could be to be sure you’re trying on the full value of possession,” he stated, including that lots of people aren’t targeted on issues like closing charges and property upkeep prices.

“House possession is an enormous life-style shift, for a few of these causes, and likewise simply the accountability of getting to hold a mortgage.”

Apartment consumers ought to have knowledgeable authorized overview of the standing certificates, which particulars monetary and authorized details about the unit and rental company, Saunders identified. First-time consumers don’t anticipate among the data in these certificates and what meaning for his or her future prices. 

“That may truly present you the historic development of modifications to upkeep charges, any points within the constructing that may trigger modifications to your widespread bills, and issues like that,” Saunders stated.

“We work so much with that youthful demographic shopping for condos — that’s one of many largest issues we see throughout the transaction course of. Individuals are shocked about these charges that they didn’t actually totally perceive earlier than taking possession of their property.”

On the brink of purchase means plenty of analysis and on-line calculators, he added — authorized charges, mortgage insurance coverage for consumers who don’t have a 20% minimal down fee, and land switch taxes, from which some first-timers and provinces are exempt.

Consumers additionally must be ready for a way of life change if they’re pursuing cheaper property, Pike stated, particularly if they’re transferring from city to rural.

Throughout the pandemic, she noticed consumers fleeing Ontario and British Columbia, snapping up cheaper, rural properties in Nova Scotia. It didn’t go nicely for everybody, she stated. Driving to a retailer or gymnasium or physician may take an hour.

“It’s not simply shopping for a home and, you understand, trying on the ocean,” Pike stated. “Or shopping for one thing that’s cheap. There are plenty of issues that include it, in the event you’re shopping for rural.”

One other factor that surprises consumers: plenty of houses want work. Except you’re lucky sufficient to be within the high-end market, it’s attainable many listings inside your worth vary may wish tens of hundreds in repairs, Pike stated. Many consumers aren’t ready for these prices, she added.

Lastly, first-time house consumers ought to plan to remain in place for no less than three years, however ideally 5 or extra, Pike stated. If having youngsters is sooner or later, wait to get a house with the additional bed room; don’t assume you’ll be able to simply improve in two years.

Including up the fairness you’ve gained and potential worth will increase, however subtracting the prices of the transaction and realtor commissions — it’s nonetheless three to 5 years to come back out forward, Pike stated.

The pandemic noticed main worth will increase, she famous, however usually, most ought to plan to construct fairness over a number of years earlier than promoting and shopping for once more.

With every thing else in place, consumers are prepared if they’re keen to ask for assist from their crew of pros: dealer, realtor, and lawyer.

“You’re not afraid to ask questions or say ‘I don’t perceive this,’” Pike stated. “As a result of this can be a massive deal.”

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down payments first-time homebuyers mortgage strategies mortgage tips Ownright real estate market Robert Saunders The Canadian Press

Final modified: Could 27, 2025