Buyer Representation (sometimes referred to as Buyer Agency or Designated Agency) is a relationship between a buyer and a Realtor whereby the Realtor is obligated to work solely in the best interests of the buyer and to protect the buyer’s negotiating position at all times. This includes duties of loyalty and confidentiality. A Realtor working as a Buyer Representative is obligated to follow all lawful instructions of his or her buyer client.
Sitting down with a mortgage professional is one of the first things you should do when beginning the house hunting process. You don’t want to waste your time looking at homes outside of your price range. Make sure the mortgage professional you’re working with conducts a full pre-approval including a credit check. If there are any issues with your credit it is best to know about them well in advance so you can take corrective action. If you don’t have an existing relationship with a mortgage professional, call a member of our team for recommendations.
Step 1 is to get pre-approved for a mortgage. A pre-approval lets you know how much you can spend, and locks you in at the current interest rate for 90 days or more, allowing you to shop with confidence. This is especially important with a potential interest rate hike by the Bank of Canada, which may impact your mortgage rate and ultimately, your home-buying budget.
The down payment is an essential part of your purchase. There are private lenders who offer mortgages with zero down, but the interest rate will likely be much higher and the cost to you will be much greater in the long run. This is generally not recommended. Don’t cut corners and risk your home and investment. Save up at least five per cent of the purchase price, and consider reducing your home-buying budget to make it more affordable.
Aside from good ol’ scrimping and saving, you can also take advantage of the first-time Home Buyer’s Plan to borrow from your RRSPs – tax free!
Reducing the listing price is the way to go. It’s critical that you list your home for the right price, in order to attract interest from buyers and generate serious interest in your listing. Your real estate agent will help you set the right price that is competitive with comparable homes in your area.