The Guide to Financing Your First Condo

Transcription

1 The Guide to Financing Your First Condo

2 Purchasing your own home is an exciting step in your life, but if you don t do your research and plan ahead, it can be a very daunting task; one that can end up costing you a lot of money and cause even more stress if done incorrectly. This guide to financing your first condo will prevent the fights, prevent the stress, and keep your money exactly where it belongs. Here you ll find answers to plenty of questions that first time condo buyers ask, as well as information on how to go about securing your spot in the Killick. By the time you re finished reading this guide, you ll be ready to confidently move forward toward the home of your dreams.

3 IS A CONDO RIGHT FOR YOU? The first thing you need to ask yourself before you purchase your condo at the Killick is whether or not condo living is right for you. Choosing to live in a condominium comes with many advantages, including the ability to access amenities that may be out of your price range in a single family home. By sharing the costs through condo fees, the Killick s grounds, including the lawn and gardens, will be professionally maintained and secure, the building itself will also be kept up to date, and when winter comes you won t have to worry about plowing. Condo fees take care of all of these things, allowing you to relax after a long day while staff takes care of the hard work. The Killick also offers a communal marina and boat, an in-building gym, a music room, a dog grooming station, a great social room that includes an oven, a lounge area with beer on tap, a projection screen, USB plugs, comfortable furniture and huge coffee tables. All of these features are available without leaving the property, making it a great place for folks who love meeting their neighbours and feeling like they are part of a community.

4 DO CONDO BUYERS HAVE TO PAY SALES TAX? With any newly built home, purchasers in Nova Scotia are required to pay the Harmonized Sales Tax. That said, if this is your first condo, you may be eligible to receive a First-Time Home Buyers Rebate. To be eligible for this rebate your newly constructed condo must be your primary residence and you must not have owned and occupied a home in Canada in the last five years. If the home you owned and occupied was involuntarily destroyed over the last five year, you may still qualify for the rebate. Once you find out if you qualify, you have 24 months from bill of sale date to apply for the rebate. You can find out more about the First-Time Home Buyers Rebate by heading over to the Government of Nova Scotia s web site.

5 WHICH FINANCING OPTION SHOULD I CHOOSE? Choosing the right financing option for you can make all the difference between a painless process and a real hassle. You want to enjoy your condo from the minute you move in, not worry about your mortgage. By understanding your finances and getting a plan in place from day one, you ll be ready to move into the Killick in no time. The first thing you need to do is research the prices you can afford. Condos at the Killick start at $274,900 and offer plenty of upgrade options to suit your needs (including built in stereos, pre-wiring for speakers, pull outs in the kitchen and pantry, and more). If you re wondering if this price is in your budget, check out this handy tool from the New York Times that can help you determine if buying is the right option for you. Because the Killick is in the pre-construction stage, purchasing one of these amazing new condos works a little differently than a standard resale of an existing home. When buying new, you generally have to put down between 20-25% on your bank s requirement. The good news is that these payments are broken into instalments and in the end only serve to benefit you. Purchasing a condo doesn t require any sort of special mortgage. As a matter of fact, any standard option will be just fine. If you d rather pay a locked-in interest rate over the entire length of your mortgage, you ll want to look into obtaining a fixed rate mortgage. A fixed rate mortgage means you ll know exactly what to expect and is great for people who thrive with a stable, long term plan. On the other hand, a variable rate mortgage is also an attractive option for many potential buyers. Variable rate mortgages generally offer the lowest mortgage rate available. They also present you with the potential to save you thousands of dollars as interest rates decline over the life of your mortgage, meaning you can pay it off faster and own your home in a shorter amount of time. In the end, your best bet is to sit down with a financial advisor at your bank (or our on-site mortgage specialist) and lay out a plan that suits your needs and lifestyle. Once you ve established how much you can pay and how you want to pay it, you can find the spot in the Killick that is right for you.

6 WHAT ABOUT PRE-APPROVAL? Getting pre-approved for your mortgage is definitely a smart thing to do. With a pre-approved mortgage, you ll know how much you re able to borrow, so you can shop with confidence and make an offer as soon as you find the Killick condo that you want. To get pre-approval, you ll need to meet with your mortgage specialist and supply them with the following: A photo ID A record of employment along with a letter from your employer that includes you current salary and the length of your employment. Information on your bank accounts and investments (account numbers, locations, etc.) Information on your assets (Vehicles, property, collections, etc.) Information on any liabilities (Loans, lines of credit, liens, child support payments, existing mortgages, etc.) Many institutions allow you to apply for pre-approval online, and will often follow-up with you within two business days to present you with your options going forward.

7 WHAT IS MORTGAGE LOAN INSURANCE? If you re planning on making a down payment of less than 20% of the purchase price, your lender will probably require mortgage loan insurance. Mortgage loan insurance is a good thing for everyone involved; it allows you to purchase the home of your dreams with a minimum down payment, and it protects your lender from a potential mortgage default. Lenders are able to obtain mortgage loan insurance by paying an insurance premium that will be passed on to you. Usually you will have the option of paying the premium in one lump sum. Conversely, you can have it rolled into your monthly mortgage payment; whichever option works best for you.

8 WHAT IS LTV AND WHAT DOES IT MEAN? LTV stands for Loan-To-Value and determines how much your property is worth in relation to how much mortgage you have. If you re a first time buyer, your goal should be to put as much money down as you can in order to ensure your LVT ratio starts as low as possible. The best way to keep your LTV ratio low is to pay your mortgage above and beyond the interest. Additionally, keeping your condo well maintained can go a long way to increase the value of your home against the amount of money left to pay on your mortgage.

9 ALL SYSTEMS GO! At this point you should know if condo living is right for you, how to determine if you should buy or rent, whether or not you qualify for the First-Time Home Buyers Rebate, and the steps you need to take in order to be pre-approved and approved for your mortgage. Now is the time to choose the Killick condo that s perfect for you. At this point you should know if condo living is right for you, how to determine if you should buy or rent, whether or not you qualify for the First-Time Home Buyers Rebate, and the steps you need to take in order to be pre-approved and approved for your mortgage. Like Us KingsWharf Follow Give us a call at Toll Free:

10 Now is the time to choose the Killick condo that s perfect for you. With awesome views and amenities, the Killick offers the ultimate in urban living. Contact Dale Cameron ( ) or another member of our sales team at ( ) or visit us at thekillick.com to find out more about how you can turn your dream condo into a reality today. Combining luxury, convenience, and comfort, the Killick puts Nova Scotia s ocean at the foot of your doorstep, starting at just $274,900. As the newest development in Kings Wharf, the Killick offers the same level of luxury condominium living at a cost-effective price point, which means you don t have to put off your dream of living on the water. For your own slice of waterfront life visit thekillick.com or us at info@thekillick.com