The main reason many renters feel they can’t afford to purchase a home has to do with saving for a down payment. But there are many solutions available today that can help first-time buyers with their down payments.

Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment.

Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down”. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the homeownership door and start accumulating equity earlier. The only catch, however, is that you must remain with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.

And last year, a $5,000 increase was made to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.

And if there’s a couple making a home purchase together, they can each withdraw up to $25,000 from their RRSPs.

Making an informed decision
There’s an endless amount of information available to prospective homeowners – through the Internet, friends, family members and anyone willing to voice their opinion on a given subject. What you need, therefore, is education and coaching as opposed to being bombarded with more information.

That’s why it’s important to speak to a mortgage broker or lender in order to get a pre-approval prior to setting out home shopping. This will help set your mind at ease, because many first-time buyers are overwhelmed by the financing and buying processes, and often don’t know what it truly costs to purchase a home. We can provide you with real examples that can go a long way in showing you what it really costs to buy a home in your area versus what you’re currently paying in rent.

If you’re currently paying $800 per month, for example, with that same payment (including taxes) you could afford to buy a $120,000 home. And assuming real estate values increase 2% per year over the next five years, as a new homeowner, you would have accumulated $27,000 in equity in your home. If you continue renting, however, this $27,000 has generated equity in someone else’s home.

As always, if you want to talk about what type of home you can afford, your answers are just a phone call or e-mail away!

When you’re setting out to get your home ready to sell, you need to look at your house in a whole new way. You have to think of your house as a product that is about to go on the market where it is probably competing with brand new housing. This means it needs to show well and appeal to potential buyers as a place they can easily move right into without making major repairs.

Although some homebuyers are willing to take on fix-me-uppers, many of today’s house hunters lead busy lives and may not be interested in embarking upon major repairs or improvements upon moving in.

Fix it First
If you need to make improvements to your home, do the work before the “For Sale” sign hits your lawn. Potential buyers are not interested in hearing about your good intentions to look after defects before a transfer of ownership takes place. Even if fix-up work is underway,

buyers may not be able to visualize what your home will look like upon completion of a project. They will just remember it being in a state of disrepair.

Professional Inspection
A serious buyer may want to have a professional home inspector check your house from top to bottom before making an offer. Keep in mind that the option of hiring a professional home inspector is open to you as well. If you can afford it, a pre-sale inspection is a good idea. This is the best way of finding and taking care of serious deficiencies before an inspector hired by a potential buyer uncovers them.

Inspection Checklist
Click here to see Canada Mortgage and Housing Corporation’s (CMHC’s) practical checklist to help you get started in preparing your home for a sale. Here you will find useful information for checking both your home’s exterior and interior, as well as helpful tips when it comes time to start showing your home.