This influx represents one of the highest rates per population of any country in the world.

These newcomers will be looking to navigate the dream of owning a home in Canada. According to REALTOR.ca insights, approximately 40% of individuals currently searching for homes are first-time buyers.

This article lays out the three significant steps to help you become prepared about the purchasing a home in 2024, including:

• Planning out your needs and what you can afford;
• Arranging your finances and mortgage; and
• Selecting a real estate agent

Plan the Requirements of Your First Home and What You Can Afford in 2024

What do you need in a first home?

Homes come in all shapes and sizes, in different neighbourhoods, and with various amenities. Before you even look at potential homes, you need to decide what’s important to you. This is especially true if you’re buying a home with a partner. It’s better to understand each other’s needs and wants now rather than later on in the process. For example, the neighbourhood and school district may be vital if you want or already have children and want to live in a neighbourhood with great schools.

What kind of first home can you reasonably afford?

You should also consider what you can afford when contemplating your needs and wants. You may want 3,000 square feet of space. But such a large home is out of reach for most first-time homebuyers. Areas with high-ranking school districts are also expensive.

Even if you can get an enormous mortgage to purchase the most expensive house available to you, it doesn’t mean you should. A sizeable monthly mortgage payment can hurt your financial and mental well-being in the long term. The Canada Mortgage and Housing Corporation recommends keeping your total housing payment (this includes taxes, maintenance, and mortgage) under 35% of your gross household income.

Arrange Your Finances and Mortgage for Your First Home

Are you financially ready to purchase your first home in 2024?

Buying your first home requires financial readiness. At this point, you’ve likely saved for a downpayment. But are you ready for closing costs such as legal fees and home inspection costs? These costs can amount to 2 – 4% of your purchase price. Further, once you purchase the home, are you ready for property taxes and maintenance expenses on top of your monthly mortgage payments?

It’s also important to understand what tools the Canadian government provides to first-time homebuyers. These tools generally make it easier for first-time homebuyers to make their purchase.

What is your credit score?

The next step is to review your credit score, which determines whether you’re qualified mortgage. It’s handy to find services that can help track your credit score. Many banks offer free credit score estimates without impacting it.

If your credit is on the low side, it’s essential to bring it up. This isn’t something you can do overnight. Raising your score may even delay your first home purchase. But a better credit score can provide you with better mortgage rates and more financial flexibility. If you’re purchasing your first home with a partner, note that lenders consider both of your scores.

How to find a mortgage for your first home

Your mortgage is commonly the largest loan you’ll take out in your lifetime. Therefore, it’s essential to shop for the best one. You’ll likely speak with two types of people in this process: a mortgage lender and/or a mortgage broker.

• Mortgage lenders are most commonly your large banks or credit unions. They lend money directly to you.
• Mortgage brokers don’t directly lend to you but arrange a transaction to help you find a lender. Brokers have access to many lenders beyond the big banks and credit unions — generally referred to as “A Lenders”. They can introduce you to B and C lenders who may be more lenient if you have a less-than-pristine credit score.

Previously this process involved visiting numerous banks and mortgage broker offices. But post COVID-19, this process is more commonly done over video conferencing. When the deal is settled, some lenders or brokers may still require you to visit in person to sign the paperwork.

The interest rate on your mortgage is the most crucial characteristic, but also consider aspects such as:

• Do I need to purchase mortgage insurance?
• What fees do I need to pay if I break the mortgage?
• Are there any penalties if I refinance my home?

Getting your mortgage pre-approved before you begin to look at properties is essential but optional. A pre-approved mortgage can provide certainty in how much you can bid on a house when you find the one.

Find a Real Estate Agent

Buying a home isn’t easy. It’s a lengthy process with complicated steps and procedures. Luckily, real estate agents are here to help. A realtor can match your needs and wants with what you can afford. They can also advise what to look out for in a first home — things you’ve never anticipated. They can address your concerns about the current market conditions, how certain neighbourhoods are, and what red flags to look out for and provide referrals to real estate lawyers, home inspectors, and other professionals part of the home buying process.

A REALTOR® can also do a lot of the in-person work for you during this COVID-era. Suppose you’re afraid of attending a home showing. In that case, many agents may be happy to visit the property on your behalf and show it to you via ZOOM, Facetime, or similar applications.

Once you’re ready to close on your deal, a real estate advisor can help prepare your offer package. This includes your offer price, pre-approval letter, proof of funds for the down payment, and terms and conditions.

It’s also important that you meet with several real estate agents before selecting the one you want to work with. Hiring an agent is similar to hiring an employee. You’ll want to meet with multiple agents and ask questions to understand their credentials. Online reviews are also a great way to differentiate between agents as reviews are written by real clients that have had a full experience working with the prospective agent you are interviewing.

Buying your first home is a complicated and exciting process — especially in 2024. It’s important to plan out what you can afford and what amenities and features that you and your partner need in a home. Arranging your finances and mortgage and finding an excellent real estate agent are also critical to making this process as smooth as possible and turning your homeownership dream into reality.

The post Three Steps to Purchasing Your First Home in 2024 first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Enlisting the help of a realtor could solve all these issues. In this article, we explain how a realtor provides access to rentals that you can’t find yourself, helps with the heavy lifting in finding and securing a new home, and provides valuable expertise in the rental process—especially if you’re moving to a new city. The best part is that it won’t cost you a dime.

Access to exclusive listings through MLS

You may be looking to rent an apartment by scouring websites such as Kijiji or Craigslist to find that perfect deal. In markets with low vacancy rates, this is a nightmare. Often, the second a rental is posted, dozens of prospective tenants call in. By hiring a realtor, you avoid these issues.

Although MLS is publicly searchable through Realtor.ca, there’s a 48-hour lag before non-realtors can see these listings. Thus, in cities with low vacancy rates, it’s common for the listing to be already gone by the time the public can lay eyes on it.

Helping with the nitty-gritty of renting

If you live a busy schedule, your real estate agent can also help with the “heavy lifting” of finding a property. This includes finding an available property and closing your rental agreement with the landlord.

After telling your realtor what you’re looking for and your price range, he/she can sift through the hundreds of listings on MLS and other sources to find the perfect fit for you and arrange viewings. They’ll also drive you around to view each place! This can save valuable time that would otherwise be spent calling landlords to set up an appointment to view the property and scouring the internet for your next home.

If you think you’ve found the home or apartment of your dreams and want to make an offer, the advantages of a realtor continue to shine. Because agents deal with rentals so often, they know exactly what the process is, what forms you need to fill out, and what document to provide the landlord. They can help you source papers, such as an employment letter when requested by the landlord.

An agent provides insight into both the rental process and the local real estate market, which is critical when you’re moving somewhere new.

Their expertise can cut out rental listings that are sketchy. The agent also understands your rights as a tenant and makes sure that landlords don’t do illegal acts such as ask for a security deposit in certain Canadian provinces. These two benefits can help save you from common rental scams, something that’s becoming more common as property markets get more competitive.  

Ultimately, your realtor is there to look out for you. He/she can pick up on uncommon or illegal clauses in the lease agreement that you may not entirely understand. And due to their knowledge of the local market, they know or can find out if certain buildings have a bad reputation. For example, some condo buildings may have a history of cockroaches or moulds or were designed by a developer with a reputation for low-quality products.

If you’re moving to a new city, it’s better to hire an agent who knows the market than bothering your one or two friends who live in the city, asking them about every neighbourhood. Real estate agents know their city and the neighbourhoods well. They understand which neighbourhoods are ideal for you, whether their family-friendly, commuter accessible, and much more. They can also prevent you from taking that value listing that turns out to be in the rough part of town.

You don’t pay—so what’s in it for the realtor?

There are many realtors who won’t touch rentals. Other just don’t advertise the fact that they do work with renters. The commission for rentals is much lower than if the agent had sold the property to you. While you, as the tenant, don’t have to pay anything, the landlord usually pays a commission valued at the first month’s rent. This commission is then split between the landlord and the tenant’s agent and any brokerages they work with. So, an agent would ultimately have to take on a considerable number of deals to turn a profit.

So why would real estate agents even help a renter? It’s usually to build a client base and hope that today’s renters become tomorrow’s homebuyers. If you’re satisfied with your rental, you’ll likely go back to the same real estate agent when you buy a home, and this is where the agent would profit. Better yet, you may even refer some of your home-buying friends and family to the agent. This is why, despite the fact that helping you find a rental is unprofitable, a good real estate agent still puts their best foot forward, hoping that your satisfaction makes them a hefty commission down the road.

If you’re looking for a rental property in a market with a low vacancy rate or in a city that you’re not familiar with, then hiring an agent is a must. Even if you aren’t in one of these situations, hiring an agent is still beneficial and likely costs you nothing. So why not take the chance?

The post Should you enlist the help of a realtor to find your dream rental? first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

The residential real estate industry is not different from the rest of the corporate world. Homebuyers and sellers must communicate with agents through new means as opposed to face-to-face interactions. Further, home tours have turned virtual. These may become permanent fixtures even once the Coronavirus is no longer everyone’s first thought.

But it’s not only technology leaving a lasting impact on the real estate sector. Everyone has realized the importance of having living space — especially true as many of us must work and self-isolate at home. Homebuyers and sellers now have a more substantial interest in moving to the suburbs, where a larger home is still within their budget.

COVID-19 will have lasting impacts on the real estate market and the buying and sell process. This post discusses COVID-19’s potentially lasting effects on the operations of the real estate industry. This includes:

1. Buyers and sellers using social media to communicate with agents;
2. The increasing use of virtual home tours and remote home buying; and,
3. A greater demand for larger homes in the suburbs.

Meeting and Communicating with Agents via Social Media

How we find an agent to buy or sell our home has changed with technology. Speaking with friends and getting a referral to an agent is still common. But instead of a call, many opt to message an agent on social media.

A 2018 survey on realtors in the digital age found social media was the best source of generating high-quality leads among agents, even more so than Multiple Listing Service (MLS) websites. Now that it’s harder to meet with an agent face-to-face or through cocktail parties and other social gatherings, social media is even more critical for realtors.

The pandemic is likely pushing more real estate agents onto social media to replace the social gatherings where realtors once met new business leads. As more agents adopt this lead generation tactic, it’s likely to stay in their arsenal for the long term. And social media will become more prominent in how buyers/sellers communicate and meet realtors.

Virtual Home Tours and Remote Buying

We’ve used the internet to browse online home listings for the past two decades. There’s nothing new about it. But the ability to do so during COVID-19 has made it more important, and so, agents are putting more effort into their online listings.

Photography

We already understand that pre-COVID, homes that had high-quality photography sold faster. We can only imagine how much faster photos sell a home now that open houses and showings aren’t as frequent. Before we call an agent to book an in-person showing, we’re likely looking through the photos first to narrow down what properties we want to learn more about.

Videography

A real estate video can help a potential buyer feel like they’re walking through the home. Before COVID, 73% of homeowners said they’re more likely to list with an agent who uses video. Again, this number is likely even greater with COVID-19. As agents adopt more real estate videos into their marketing strategy, it may become a new norm for realtors after the pandemic.

Further, drone footage can provide potential buyers and sellers with an idea of how the surrounding community looks. People don’t only buy a home for the interior but also the neighbourhood.

3D Home Renderings

3D home renderings with technologies like Matterport are becoming more important. 3D digital home tours provide potential buyers with a better online experience that may stay in demand even when they can view an open house again.

Remote home buying

COVID-19 has shut borders, which means foreign home buyers likely can’t fly to Canada to view a property before purchase. Even purchasing a property in another province as a Canadian can be difficult.

As a result, remote home purchases have become more popular. 42% of Ontarians said they were “open” or “somewhat open” to purchasing a home they could only view digitally. Some brokerages combine digital 3D home tours with real-time calls with agents to provide an experience that replicates an in-person showing. Ultimately, COVID has made homebuyers more comfortable with remote home purchases, and this effect likely will last post-COVID-19.

A Push Towards Larger Homes in the Suburbs

Condo apartments [AZ1] in downtown city cores have become scary places for those avoiding COVID-19. Thousands of people living in the same building is not a good way to avoid the pandemic. When you combine this with the small spaces that condo owners must self-isolate in, many look to the suburbs as their next big move[AZ2] .

This desire to move to the suburbs isn’t temporary. Remote work has created a longing for home offices that aren’t possible in a condo. In a survey of Ontarian homebuyers, 28% mentioned that pandemic isolation had increased their desire for a bigger home, more space, and more amenities. 25% wanted more outdoor space, which is usually only possible in the suburbs (unless you can afford a high-end property in the city).

COVID-19 has changed society a lot. One of those changes is how we buy and sell a home, and some of these changes are here to stay. Even after the pandemic ends, we’ll likely see social media and online alternatives to home tours take an even larger role in selling homes and driving leads to agents. The demand for larger, suburban homes will also likely continue as we further embrace remote work.

The post How the COVID-19 Pandemic has Permanently Changed How We Buy and Sell Real Estate first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

If you are thinking about renting a condo or home, you may want to consider enlisting the help of a real estate agent. Real estate agents can help you identify properties that meet your needs (one with a driveway, backyard or easy access to transit), while identifying any potential pitfalls of a neighborhood or area.

In addition, many homeowners are now using agents to facilitate their home rental. They may enlist the assistance of a real estate agent to help screen potential renters and have them organize showings of the property. To see these properties it is best if you have an agent that can organize a time for you to see the space and can provide you with unbiased advice about what you have seen. Real estate agents can also ensure you are paying a market acceptable amount for a property by negotiating rental agreements.

The rental unit owner covers agent fees. The landlord who lists his property with the listing brokerage has agreed to an upfront commission to be shared with the listing brokerage and co-operating.

Using a real estate agent can help you start building a foundation with someone that you may want to use again in the future for another rental or when looking to purchase a home. Having an agent who helps you find a place to rent can open doors to new properties, and can also help you find a hidden gem rental that you may have not noticed on your own.

To find a professional to work with, read unbiased and verified reviews on https://rankmyagent.com

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