If buying a home is one of your goals before the end of this year, or going into 2024, here are three tangible steps to set yourself up for success:
First, make an appointment with your bank specialist
to ensure the finances you are planning on using towards the purchase are in order.
This is particularly important if you are a first time buyer as you’ll want to take advantage of the incentives that you’re eligible for.
A common first time home buyers’ incentive is using your RRSP savings towards your down payment tax free.
As an individual you are able to pull up to $35,000 tax-free from your RRSP account for this purpose, and if you are purchasing with a partner who has also never owned property, you can combine your amounts for up to $70,000 tax-free.
The First Home Savings Account was also introduced in the Spring of this year, and can be used in conjunction with your RRSP savings, however there is an $8,000 annual limit on contributions to your First Home Savings Account, whereas there is no annual limit on contributions to your RRSP account for this purpose, but the funds are required to be in your RRSP for 90 days before you pull them.
All in all, it’s best to take action on these items early on so that when you are ready to purchase the funds that you are planning to use are accessible to you.
Second, connect with a mortgage broker or specialist,
to get pre-approved and gain a better understanding of your options and where you’re sitting currently relative to your purchase goal.
At this time you could also ask for a rate hold, which is typically good for a maximum of 120 days. As of today, October 25, the Bank of Canada did hold the policy rate, but we have another announcement coming up on December 6.
And third, connect with a real estate agent,
whether you’re looking to buy this month or next year, having someone in your corner who knows your home ownership goals and your local market is a huge asset.
Your realtor can set you up on a property search that lets you know about homes that fit your preferences daily, weekly, or monthly.
This is a valuable time to learn more about what you like and don’t like, what’s realistic for you, and what to expect when you are ready to start making offers.
I hope you found this video helpful! I’m Ricki-Lee Jewell with the North Pacific Homes Group in Victoria, BC. I work with my husband Alex Hughes and we are always happy to answer any of your real estate questions.
Contact us: 250-634-2141 (call or text) or [email protected]
Book a complimentary home valuation: https://calendly.com/alex-nph/30min?month=2023-05
Subscribe to our monthly newsletter & receive our Buyer’s and Seller’s Guides (PDFs): https://northpacifichomes.ca/guides/
Thank you for being here,
Alex Hughes* and Ricki-Lee Jewell, Victoria, BC Real Estate Agents
*Personal Real Estate Corporation
