Discussions

So, I'm looking to enter the housing market and stop renting. I'm just wondering what people wish they'd known before buying their first home. Any tips about questions I should be asking when considering possible places or looking for a mortgage? Being completely new to this I'd love to know about others experiences.

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mortgage rates. Right now RBC and Sunrise Credit Union have great rates. If you are considering a mobile home, Sunrise won't do the low mortgage rates on them but RBC will. Check foundation if buying a home, check plumbing, ceiling, around the windows for any leaking or previous water damage. If buying a mobile check if there is heat tape installed on pipes under the mobile. Ask what utilities cost monthly so you have an idea. Ask what repairs have been done ie roof, ask about the neighbours and what they are like, last thing you want is to buy a place and have horrible neighbours. Also think about what work will need to be done in the home and how soon, has the furnace and hot water tank been updated, if not, how soon would you have to replace them. You want to know how recently major things were done so you have an idea how soon you would have to do them. Painting, that sort of thing isn't major and most people change that anyways, so worry about big issues. If foundation leaks, walk away unless you can afford to fix that. Area for school or can you get school of choice, if that is an issue for you. And don't rush the purchase. All lawyers in Brandon usually charge a flat rate fee plus disbursements on the sale/purchase. Good luck and have fun. If you are using a realtor I highly recommend Jill Stewart at Century 21. When I was looking I learned not to use the realtor that is the listing agent, as they are more working for the seller. So I went with a realtor that had my best interest in mind and was super fun to work with.  
 
Edited by Smilin, 2015-09-18 06:35:00

Get a home inspection done by a qualified person, it will alert you to any problems and extra costs you will face.  
Be prepared to spend money and put some aside every year for repairs, replacements, upgrades. Home maintenance is a necessity.  
One thing I wish I'd known before buying my house is what a pain (and an expensive one) are the big trees on my property!

1. Bring someone along for viewings that you trust to be honest with you. Emotions can be a killer during a home buy.  
 
2. Buy in the best neighbourhood you can afford. Neighbourhood is one of the most important part of buying.  
 
3. Once you think you've found the house, ask the police if it is a high crime area.  
 
4. If you've got some skills, buy a house that is "less than perfect". There's money to be made!  
 
5. Drive through a neighbourhood you're interested in at different times of the day to see what the noise, traffic, environment is like.  
 
6. Take a good sniff in all levels of the home. If it smells musty - run! If they are loading it up with scented "cover ups" watch for signs of mould in corners, bathrooms, kitchens, basements.  
 
7. Do exactly what you're doing! Ask people advice and pitfalls!

Don't rely totally on a home inspector. I wish I had known that they really hold no liability if they miss something, even if it's major! I'm not saying don't get one. Just saying to also use all your senses when you are walking through a home.

Get a really great real estate agent who can help you to maneuver through the first time home buyer thing. I highly recommend David Vasconcelos as he is patient and knowledgable. We did not use him with our first home but we did with our last one and he is fantastic!!!

Hello I pm'd you

#1 thing - have lots of money saved up. Not only do you need a decent down payment (minimum 5% but over 20% will save you CMHC Insurance) but there are soooooo many little costs along the way. SO MANY! Even after your possession date, little things that you never considered will creep up quickly. Try to have an extra $5000 above your down payment.  
 
Get yourself a buying agent. At first I thought that was rude to take commission away from the selling agent, but it's the norm. It helps you avoid potential conflicts of interest, and it keeps the realtors from stepping on each other's toes. Also if you meet with multiple selling agents, you'll end up getting multiple calls every time a property pops up. I ended up working with Scott Rouire from Commission Rebate Realty. He's knowledgeable and professional, and he gives you a cut of his commission - I got $845 back and that was just on a $169,000 house!  
 
As for the house inspection, I used Andrew Campbell at Westman Home Inspections. You do sign a waiver, but Andrew was still very honest with me... telling me what was well done, what was satisfactory, what needed work. He even gave us a few suggestions of things the seller should fix before we buy. He even came back to inspect something that the seller changed after the original inspection. Great service! (This was just under $400.)  
 
For my mortgage I went with Chris Turcotte at Centum Mortgage Brokers. Instead of you going from bank to bank looking for the best rate, Chris finds you the best rate. And if you've got a really good credit rating, he can even make the banks fight for your business by offering lower rates!  
 
I literally just bought my house this week, so my experience is fresh! Feel free to PM me if you have any questions!  
 
Edited by Ahvah, 2015-09-18 09:05:36

1 - First time home buyers plan - as an option for down payment, you can take money out of your RRSP. You have to pay it back over 15 years i think.  
 
2 - Bank fees/interest rates are all negotiable. It is worth it to do your homework on mortgages.  
 
3 - Keep flooding issues in mind...with all the water in the past few years, you may want your place equipped with basement flood protection of some sort - weeping tile, sump pump, backwater valve. Check to make sure the grade is sufficient around the house so water doesn't pool around the foundation.  
 

My husband and I bought and sold a total of 3 properties between us before buying our current home. Our current home is the only one we had inspected, because we felt a little unsure.  
 
Our take-away lesson: If we think we might need an inspection, walk away. We have had massive (to the tune of $30,000) issues with our current home, none of which was picked up on inspection. In fact, the inspectors didn't tell us anything we couldn't see obviously for ourselves. If you see something in a house you really like, pay the money to have someone come in specific to that trade... and don't rely on the inspector OR the disclosure from the sellers.  
 
(We wanted to sue the sellers based on the disclosure. The lawyer said we'd never win. What was the point of the disclosure then, if they're not going to disclose what we needed to know?)

my advice would be to buy a home you can grow into. I only say that mostly because of storage. It seems that what might be a lot of storage quickly becomes an issue. lol My master bathroom has full length cabinets, including 6 drawers plus storage under the sink and just with my own things, is full!  
 
Plus you should examine things like windows, tubs and shingles. So many just get blinded by the cute way a home is decorated and forget to really "look" at guts of the home.

That a home inspection will never note.  
 
One huge issue for us that we are hoping to finally be able to rectify this fall is water pressure.  
 
We never thought to see how well the water worked. We have such poor pressure that the shower won't run when the toilet is flushed. One plumber has a theory that the reason my washer and dishwasher never work very well is because we just don't have enough pressure to the house. We were told we could not have an on demand water heater until we got the flow up.  
 
Whatever the case - we are also in a home that has very high lead levels. Probably - I am no told - because the low pressure we get due to sediment of lead in the old pipes - it forces the water to sit in the lines longer.  
 
Either way - do yourself a favor and run a tap while someone flushes the toilet. I am currently waiting on quotes to fix the issue. About five years ago someone ball parked the figure at $6000-10000. I am a bit scared to know what it might be today.  
 
Would have been something nice to know when we were negotiating the original purchase.  
 

foxtrot11 said "That a home inspection will never note.     One huge issue for us that we are hoping to finally be able to rectify this fall is water pressure.     We never thought to see how well the water worked. We have such poor pressure that the shower won't run when the toilet is flushed. One plumber has a theory that the reason my washer and dishwasher never work very well is because we just don't have enough pressure to the house. We were told we could not have an on demand water heater until we got the flow up.     Whatever the case - we are also in a home that has very high lead levels. Probably - I am no told - because the low pressure we get due to sediment of lead in the old pipes - it forces the water to sit in the lines longer.     Either way - do yourself a favor and run a tap while someone flushes the toilet. I am currently waiting on quotes to fix the issue. About five years ago someone ball parked the figure at $6000-10000. I am a bit scared to know what it might be today.     Would have been something nice to know when we were negotiating the original purchase.     "

I forgot that one! We bought our first home without turning on a tap. The stand alone tub, pedestal sink and toilet were all sitting in the appropriate spot but when we moved in we quickly realized that they were not hooked up!!!!! We had no leg to stand on and ended up with a huge plumbers bill right off the bat.  
When we bought our next house we made sure to run every tap and flush every toilet. Paid off because there was a hole in one of the pipes under the sink that the previous owners fixed before we bought.  
 
Edited by HLF, 2015-09-18 11:34:39

Aside from the practical things (home inspections, startup costs, etc), I'd say that one of the most important things is to make sure that your life values are compatible with home ownership. If having a home takes away from the values you cherish, then you're going to quickly find yourself becoming stressed and miserable.  
 
Life values would include things like: security, prestige, having fun, adventure, hobbies, generosity, going out, etc.  
 
My wife and I found this out the hard way after we purchased our first home. While we found security in having a house, it significantly took away from the other values we cherished: generosity, having fun, hobbies, and adventure. The time and resources we normally would've had to put into those values were now all being diverted into the house and everything that comes with home ownership. We became stressed and miserable - not because home ownership is bad - but because we had purchased the wrong home, in the wrong price range (even though we were technically able to afford it), and for the wrong reasons.  
 
We eventually sold our house to live overseas for 4 years (my wife values 'adventure'). We've actually just recently moved back to Brandon and purchased our second home that fits perfectly with our values and are now much, MUCH, happier.  
 
Another thing to keep in mind: figure out your budget numbers beforehand. Make sure the numbers are clear, SPECIFIC, realistic, and (again) are compatible with your life values. Once you've figured that out, you'll know what the max amount of money you can spend is, and then stick to that number NO MATTER WHAT. Homes are popping up all the time, be patient, and eventually the right home will come up that fits into your criteria. If you need help with budgeting, Gail Vaz Oxlade (of 'Til Debt Do Us Part' fame) has awesomely excellent interactive budget template to help you with this (http://www.gailvazoxlade.com/resources.html - be sure to read her walk through on how to set things up).  
 
Last thing: be willing to compromise. You probably won't find perfect harmony between your values and home ownership, so be willing to compromise in favour of the the values your value more.  
 
I know this is a tad long, but I hope that helps!  
 
 
 
 
 
Edited by Sykes, 2015-09-18 11:47:23

The big mistake I made was once I got into my house I had to make it perfect. Spent all my buffer money and then some on furnishings and decor. Just remember, you have time to do all of that little by little. Don't get caught up in the excitement and need to get everything done all at once. It was totally unnecessary when just starting out and screwed me in the long run. Good luck with your purchase!

HLF said "    foxtrot11 said "That a home inspection will never note.     One huge issue for us that we are hoping to finally be able to rectify this fall is water pressure.     We never thought to see how well the water worked. We have such poor pressure that the shower won't run when the toilet is flushed. One plumber has a theory that the reason my washer and dishwasher never work very well is because we just don't have enough pressure to the house. We were told we could not have an on demand water heater until we got the flow up.     Whatever the case - we are also in a home that has very high lead levels. Probably - I am no told - because the low pressure we get due to sediment of lead in the old pipes - it forces the water to sit in the lines longer.     Either way - do yourself a favor and run a tap while someone flushes the toilet. I am currently waiting on quotes to fix the issue. About five years ago someone ball parked the figure at $6000-10000. I am a bit scared to know what it might be today.     Would have been something nice to know when we were negotiating the original purchase.     " I forgot that one! We bought our first home without turning on a tap. The stand alone tub, pedestal sink and toilet were all sitting in the appropriate spot but when we moved in we quickly realized that they were not hooked up!!!!! We had no leg to stand on and ended up with a huge plumbers bill right off the bat.   When we bought our next house we made sure to run every tap and flush every toilet. Paid off because there was a hole in one of the pipes under the sink that the previous owners fixed before we bought.     Edited by HLF, 2015-09-18 11:34:39"

The other thing that might not be done properly when one is purchasing is pulling of permits for jobs done.  
 
I am betting there are a huge number of homes out there with substandard "fix up or flip" jobs done without permits and that is scary.  
 
It is one thing to throw a coat of paint on yourself, or even throw in some cheap laminate to make it look better - but there are many jobs that require permits being done that are highly illegal, and I am not sure anyone who bought a home would have a leg to stand on if it causes issues - even with insurance.  
 
There are homes on either side of us with massive renos done by DIYers. The one side did a large reno complete with plumbing and electrical jobs were done by "friends" and in speaking to one contractor who was hired in that house (as we knew him personally) he said the homeowners asked for no permits to be filed in order to save money to flip it. They insulated the roof themselves and did it incorrectly, which caused giant ice dams due to the snow melt in the Spring, one year it pulled the eaves trough right off the house and almost took out a hydro line. All hydro did was put a sleeve on it, which has now been there for years.  
 
The other homeowners have done massive renos as well to this formerly nice little 2 bedroom home. I have watched as electrical supplies and plumbing supplies have been carried in and never once have I seen a licensed professional set foot in the house. A new gas water heater was installed at some point again, carried in and out by the homeowner. That is incredibly scary.....  
 
I am fairly certain they have added bedrooms to the basement (there are about a dozen people living in that house right now) as I did see tons of drywall carted in - but I have been in that basement - and they have added no new windows so if they have built bedrooms you know they are not safe. That house is a ticking time bomb as far as I am concerned.  
 
If someone were to buy that house today - it may look fine on the surface (though I doubt it if the exterior work is any indication - how the house is not full of rodents and bugs is beyond me).  
 
I think it would be prudent even if you do not get a proper house inspection - to pull permits for major work that has been done. It could give you big leverage to deal or give you cause to run away from an accident waiting to happen.

Sent you a PM

You need to be pre approve for mortgage by lending bank or credit union.  
Try to approach your bank or credit union to see if your are qualified for mortgage first.  
I may be wrong

1) As others have said, get a home inspection.  
2) If there are things that you see need to get fixed try to get the repairs included in the agreement to buy.  
3)Your real-estate agent can save you tons of cash - mine saved me close to $13,000 - so get a good one. I'll pm you a recommend if you like.  
4) AVOID the RBC like it is plague-ridden. If I could redo buying my house going to the RBC is the single most important change I would make. Go anywhere else!  
 
This is just my experience, your mileage may vary.

Flush toilets, run taps. Check under kitchen sink counter and vanities for any signs of water stains.

check for all forms of asbestos  
vermiculite insulation is very costly to remove

http://www.gailvazoxlade.com/resources/interactive_budget_worksheet.html  
 
Last thing you want to be is house poor because you bought more than you could afford.  
 
Less house, less expense.  
 
Marpet

Lots of people walk into a house and go wow nice cupboards, nice floor, nice wall colors, oh the bathroom has been redone. You have to look at things like plumbing, electrical, furnace, foundation.

We got preapproved for a mortgage just to expedite the process when we did find a house we wanted to buy. And then we we looked at homes within that range. We made sure our monthly mortgage payments still gave us flexibility in our budget. We also included the town taxes with the monthly mortgage payments. This way the mortgage holders pay the taxes and you don"t have to worry about having the funds to pay the municipal tax bill every year.

i think the tips program the city offers is better in my opinion (i've never done through a mortgage tho). they automatically can adjust your monthly payments so the correct amount is coming out and seems like less of a hassle. tacking your taxes onto the mortgage seems like adding a middle man. either way i do like monthly payments rather than having to pay your taxes all in one lump sum. these are good tips tho

Having your taxes paid by the mortgager is no hassle at all, they calculate the amount needed to add on to your payment and put it in a separate account which accrues a little interest all year.  
Mortgage holder gets a copy of your tax bill, makes sure it's paid on time and you have no worries about having to come up with a big chunk of change at tax due date.  
Would advise you if you get a re-assessment notice and your house value has taken a larger than normal increase to advise the bank as they will adjust your payment. I didn't do that one year when my assessment took a huge leap and got caught owing more than we had estimated.