{"id":242,"date":"2021-06-02T11:00:32","date_gmt":"2021-06-02T15:00:32","guid":{"rendered":"https:\/\/blog.mortgageinsurancegroup.ca\/?p=242"},"modified":"2021-11-10T11:56:02","modified_gmt":"2021-11-10T16:56:02","slug":"ready-to-purchase-a-home-heres-how-you-should-prepare","status":"publish","type":"post","link":"https:\/\/mortgageinsurancegroup.ca\/blog\/ready-to-purchase-a-home-heres-how-you-should-prepare\/","title":{"rendered":"Ready to Purchase a Home? Here\u2019s How You Should Prepare"},"content":{"rendered":"<p><span style=\"font-weight: 400\">When you purchase a home, it is one of the most significant milestones in people&#8217;s lives. If you feel prepared to make a purchase but aren\u2019t exactly sure you know where to start, we\u2019re here to help. Let\u2019s take a look at some of the best steps you can take to make purchasing your home easier for you.<\/span><!--more--><\/p>\n<h2><b>The pre-approval process<\/b><\/h2>\n<p><span style=\"font-weight: 400\">The pre-approval process will help you determine important factors like the down payment you will need to make and the types of homes you will be able to afford. Before you decide to go with a <a href=\"https:\/\/mortgageinsurancegroup.ca\/you-choose-beneficiary.php\"><strong>lender<\/strong><\/a>, check with different lenders and banks and be sure to compare their rates so you can find one that works best for your budget.\u00a0<\/span><\/p>\n<h2><b>Consider all costs associated with homebuying\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Your mortgage and downpayment <\/span><a href=\"https:\/\/rates.ca\/resources\/costs-of-buying-a-home\"><span style=\"font-weight: 400\">aren\u2019t the only costs associated with purchasing a home<\/span><\/a><span style=\"font-weight: 400\">. Many people looking to buy a home, especially those buying for the first time, can overlook or completely forget about other expenses like closing costs, land transfer taxes, lawyer fees, property taxes, home inspections and more. When you are in the market for a new home, work with your agent and other supporting professionals to ensure you are factoring all costs into your budget.<\/span><\/p>\n<h2><b>Build up your savings<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Most mortgages require you to make a down payment. The minimum down payment required to purchase a home in Canada is typically around 5%, but you should aim to put down more than that amount. To avoid getting mortgage default insurance, which protects the lender if you default on your mortgage, you need to put down a deposit of 20% or more. Take the time leading up to your purchase to make sure you are saving for the down payment of your future home, so mortgage default insurance is another fee you won\u2019t have to worry about with your mortgage.\u00a0<\/span><\/p>\n<h2><b>Pay off your debt before you purchase a home<\/b><\/h2>\n<p><span style=\"font-weight: 400\">When you are ready to make a purchase, it is a good idea to make sure you pay off any outstanding debts you are carrying. Debts like credit card payments, car payments, student loans, and other lines of credit can harm your ability to get the mortgage you need to purchase a home. A <\/span><span style=\"font-weight: 400\">debt to income ratio<\/span><span style=\"font-weight: 400\"> is what lenders use to determine how well you will manage monthly expenses while also paying off your debts. If you want to calculate this figure on your own, you can do so by adding up your regular monthly debts, dividing that number by your monthly income and multiplying it by 100. As you pay off more of your debts, you\u2019ll be lowering your debt to income ratio and making it easier for you to get the mortgage you need.<\/span><\/p>\n<h2><b>Work with a real estate agent when you want to\u00a0 purchase a home<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Real estate agents can help make a complicated process much more streamlined for you and your family. Your agent can help you narrow down your options based on what you want in a home and neighbourhood and what your ideal budget can get you. Sellers often use their agents as well, but, as a buyer, you shouldn\u2019t rely on what the seller\u2019s agent is telling you. Instead, get a professional on your side that has your best interest in mind. <\/span><span style=\"font-weight: 400\">To find a real estate agent<\/span><span style=\"font-weight: 400\">, you can start by consulting with family and friends, and then you can take your search online to see the agents that work in the area that interests you the most.\u00a0<\/span><\/p>\n<h2><b>Coverage for the people who matter most<\/b><\/h2>\n<p><span style=\"font-weight: 400\">A mortgage is a significant financial responsibility, and if something happens to you, it can pass on to the people who mean the most to you. Unlike mortgage default insurance, our<\/span><a href=\"https:\/\/mortgageinsurancegroup.ca\/our-plans.php\"><span style=\"font-weight: 400\"> life insurance plan<\/span><\/a><span style=\"font-weight: 400\"> protects your family from covering the cost of a mortgage after you pass away. <a href=\"https:\/\/blog.mortgageinsurancegroup.ca\/8-benefits-of-mortgage-life-insurance\/\">Mortgage life insurance<\/a> provides your loved ones with a completely tax-free benefit that can be used in any way they wish, including paying off any remaining mortgage debt and keep your home safely in the family.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Interested in discovering your mortgage life insurance options? Get your <\/span><a href=\"https:\/\/mortgageinsurancegroup.ca\/\"><span style=\"font-weight: 400\">free quote now<\/span><\/a><span style=\"font-weight: 400\"> to get started, and our team of advisors will be more than happy to help you find a plan that works for your needs and budget.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you purchase a home, it is one of the most significant milestones in people&#8217;s lives. If you feel prepared to make a purchase but aren\u2019t exactly sure you know where to start, we\u2019re here to help. Let\u2019s take a look at some of the best steps you can take to make purchasing your home [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","wp_social_preview_title":"","wp_social_preview_description":"","wp_social_preview_image":0,"footnotes":""},"categories":[22,19],"tags":[24,23,17,16],"class_list":["post-242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","category-mortgage-life-insurance","tag-buying-a-home","tag-homeowner","tag-mortgage","tag-mortgage-life-insurance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ready to Purchase a Home? 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