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The Era The Banner The Bradford Topic HomeFinderCa Thursday Feb 25 Showcase THE ERA Banner TOPIC ElHomeFnderca Make your home ownership dreams come true Ian Production PeatrBjutluii Gofd Laurie McDonald Monica Madden Laura Foden Catania Steven Court Box 236 Newmarket ON 8057737627 Todays economy may have you wondering if now is the right time to buy your first home With a more moderate real estate market and interest rates at all time lows many find that now is the ideal time to make their home ownership dreams a reality The following information on buying your first home is courtesy of the Ontario Real Estate Association and your local Realtor Many people are often surprised to team that the costs of owning a home can be substantially lower or comparable to those of renting There are also many financing options and wide variety of housing choices that can make owning a home more affordable Before you start searching for a home its important to determine how much you can afford to pay You may learn that the modest home you can afford is a far stretch from your dream home but it will be a start and will require far less cash as a down payment To determine how much you can afford as a first time buyer enlist the services of a Realtor A Realtor will help you identify what you want and take you to homes and neighborhoods that reflect your lifestyle needs and price range This individual will also help you understand property financing taxes insurance and the steps you will have to take as a firsttime buyer to complete a real estate transaction Most lenders will not permit a borrower to take on a debt load the borrower cant carry Thats why reputable lenders qualify potential borrowers before lending mortgages Usually lenders say that your monthly housing expenses mortgage payment and taxes plus condominium fee if applicable should not exceed 30 of your monthly gross family income This is called your Gross Debt Service GDS ratio Lenders also use a second calculation called Total Debt Service TDS ratio Generally speaking no more than 40 of your gross family income can be used when calculating the amount you can afford to pay for mortgage payments and taxes plus other fixed monthly expenses These other fixed costs are your ongoing commitments and can include auto student or personal loans as well as credit card payments Saving a down payment The hardest part about buying a home for most first time buyers is saving the down payment You may have the ability to keep up with the monthly financial obligation mortgage payment insurance utilities property taxes maintenance but finding the down payment may be a problem Once you decide what you can afford and find the home you want in the right neighborhood at the right price here are some of the sources you can tap into for a down payment Savings and investments Bring the There is Plenty of Room raised turn loafed h Zephyr bads on to granspK Mat up a Untied torn rH apt tH tent loiwleeiupMriWanwcuslonilalrelio4iinB2sEBa CaflCfylDw Chevy Tymosto 90V47M111 Beautiful year old home situated on child safe culdesac This home has 4 bedrooms baths finished casement walkout from eatin kitchen to a new 16x1 deck with B8Q nook stairs down a fully fenced private yard Call Deidra today Deidra Henderson 9054769393 www Oritur Above Buying or Selling Coil on e competence and performance Independently Owned and Operated wwrirarfflaxeffleMMC8m The vast majority of home buyers lack the Registered Retirement Savings Plan RRSP you funds required to buy a home without assistance can withdraw 20000 per individual from a bank or other lender Most people buy per couple without any tax penalty as long as you a home will need to arrange a special type of pay the amount back within IS years loan commonly known as a mortgage Before a lender will give you a mortgage they will need to Loans or gifts from your family or relatives determine how much you can afford to pay A lender will look at how much you will need for Mortgage insurance the initial purchase of your home including your Until recently to qualify for a conventional down payment and other costs such as legal fees mortgage a buyer needed to put down in cash inspection fees and taxes They will also look at the at least 25 per cent of the purchase price But a ongoing costs of paying back the mortgage along new law that came into effect last year lowered with monthly costs for utilities maintenance the level to 20 per cent To put down less than insurance and annual property taxes 20 per cent a buyer has to qualify for a high- ratio mortgage By law this type of mortgage must be insured against default in payment The cost of this mortgage insurance depends on the value of the house and the size of the loan While mortgage insurance doesnt help you come up with the downpayment it can certainly help you get into your own home faster Most mortgage insurance companies offer a five per cent down option This program insures the mortgage on your home against default in payments for up to per cent of the lending value The Top Ten Achievers for the month of January 2010 Omega Realty 1 988 ltd brokerage stellar Dr Newmarket Independently Owned and Operated 9058981211 187752OMEGA David Mitchell Diane Priest Rocco Racioppo Guy Stramagha Bruce Turn RFMBK RF1IC RF41BK REMKK RFMBK RFWBK This option especially benefits people who can afford the monthly payments involved in owning a home but would have trouble saving a large amount of cash as a down payment The five per cent mortgage program charges an insurance premium which can be added to the mortgage or paid on a monthly basis A Realtor can help you understand how this program works and ensure that you get the maximum benefit possible He or she can also help guide you through the entire home buying process and explore all your options to get you into your first home sooner This article is provided by local REALTORS and the Ontario Real Estate Association for the benefit of consumers in the real estate market