Starting Your Homeowner Journey in Parkside at Arcadia
Buying a new home is an exciting new journey, but it also requires a thorough understanding of the financial aspects of homeownership. Whether you are a first-time buyer or an investor, it is essential to know the costs of purchasing a house and to understand the ins and outs of mortgage financing.
We’ve gathered a few financial considerations to better acquaint you, as a potential Parkside at Arcadia owner, with the particulars.
Deposit Structure
Deposit structure refers to the schedule of payments that a buyer agrees to make towards the purchase price of a new home. This structure includes several installments that are paid at different stages of the home-building process.
The specific deposit structure can vary depending on the builder, the type of home, and the terms of the purchase agreement. However, for Metro Townhomes in Parkside at Arcadia, the deposit is structured into four manageable payments of $10,000 each, which are due at the time of signing and at 60, 120, and 180 days thereafter.
Saving for a Down Payment
There are several ways you can start saving for a down payment, such as:
• Eliminating credit card debt and redirecting payments to your savings account
• Taking public transit instead of driving to work to save on gas, repairs and parking
• Cooking at home instead of eating out
• Buying fewer clothes and accessories
• Taking on a part-time job and saving the income
• Living on a post-purchase budget to get used to the additional costs of homeownership
Pre-Approval
Getting approval for your mortgage is, of course, key to determining what kind of home you can afford. However, getting pre-approved is absolutely necessary to help you understand how much money you can borrow and start the process of looking for an appropriate home. Pre-approval also protects your interest rate for up to 160 days while you arrange the purchase of your home.
To get pre-approved, you'll need to meet with a lender or a mortgage broker to determine the maximum you can borrow and the interest rate you'll be charged. You'll also be asked questions about your annual income, debts and monthly payments, financial obligations and assets. You may also be asked for documentation, including personal identification and proof of earnings.
At Minto Communities, we want to make your home-buying process as easy as possible. That's why we've partnered with TD to offer you dedicated TD Mobile Mortgage Specialist services for Parkside at Arcadia. This expert will guide you through the process every step of the way, focusing on providing you with all the help you need for your mortgage, so you can focus on your new home.
Also, you will need to make a deposit when you buy your home, as well as scheduled interim payments before actually taking possession. Minto buyers, for example, make a minimum deposit at signing and additional interim payments.
Find out more about mortgage pre-approval.
Mortgage Shopping
Consider comparison shopping to save thousands of dollars over the life of your mortgage. You can use websites like Ratehub.ca and RateSpy.com to compare rates and talk to mortgage brokers to find deals your chartered bank may not offer. Be sure to ask a lot of questions about the penalties, extra payments and terms to ensure that you understand exactly what you are being offered.
Closing Costs
These costs, which must be paid at the time of closing, include legal fees, title insurance, home inspection, land transfer taxes and other charges. Be sure to budget for these costs, which can range from 1.5% to 4% of the purchase price, so you’re not caught by surprise.
Financial Assistance
The federal government offers financial assistance for home buyers, including a First-Time Home Buyers' tax credit and the Home Buyers' Plan for first-time buyers. Additionally, all buyers may qualify for the GST/HST rebate program on newly built homes. Homes certified under certain energy programs are also eligible for a partial premium refund on CMHC mortgage loan insurance. Check the Government of Canada website for up-to-date information on these programs.
Important Calculations
Online calculators can assist with your home-buying journey, providing you with insight into your needs and abilities. An affordability calculator helps understand what you can manage for monthly mortgage or rent payments, while knowing your Real Life Ratio will let you know if you can afford that mortgage.
A mortgage payment calculator lets you work with varying down payment and amortization scenarios while comparing rates, and a debt service calculator is great for comparing your expenses to your gross household income.
There certainly are a lot of things to take into consideration when it comes to financing the purchase of your new home, but don’t worry! Just take things one step at a time and be sure to connect with Minto Communities if you need assistance. Also, be sure to visit our Glossary to familiarize yourself with all the important mortgage terms you’ll need to start your journey. By following these financial to-dos, you can navigate buying a new Parkside at Arcadia home with confidence.
