5 steps to buying your first home
Ready to make the leap and become a homeowner? Our editorial team got together with the Fonds de solidarité FTQ to bring you the five steps to follow to simplify the home buying process and get all the info you need to take advantage of the Home Buyers’ Plan (HBP).
1. Figure out your financial situation
- Meet with a financial adviser to analyze your financial situation
- Determine your borrowing capacity and how much money you have for a down payment
- Get a mortgage preapproval
2. Consider additional costs
- Mortgage loan insurance: Necessary if your down payment is less than 20% of the purchase price
- Welcome tax
- Property appraisal and inspections costs
- Sales taxes if you buy a new property
- Moving costs and notary fees
- Any other related costs
3. Find the home that’s right for you!
- Define your needs (e.g. type of property, location)
- Work with a realtor OR do the legwork yourself
- Make an offer to purchase
4. Secure the financing and insurance
- Determine your needs
- Apply for a mortgage
- Obtain mortgage loan insurance if your down payment is insufficient
- Request a property appraisal and inspection
- Remember to get home insurance, and life and disability insurance, as appropriate
5. Take possession
- Have a notary record the sale
- Sign the legal documents
- The lender will give the mortgage money to the notary
- Make sure to follow up with an advisor
Tap into the HBP for your down payment
The HBP (Home Buyers’ Plan) is a government plan under which you can, without paying any taxes, use the money accumulated in your RRSP as down payment when you buy your first home.
The advantages of investing in an RRSP at the Fonds when participating in the HBP:
- More tax savings: The Fonds offers 30% more in tax savings than a conventional RRSP.
- Simplifies your life: Make your contributions through preauthorized withdrawals or payroll deduction.
- Help drive the local economy: The Fonds invests in businesses right here at home.
After 5 years, you could end up with $25,000 in your RRSP… and you would only have to put up about $10,000 of your own money (or about $80 per pay cheque)!
The Fonds de solidarité FTQ has been a partner and major shareholder of SSQ Financial Group since 1992.