Pageflex Server [document: A6821880_00001]Summertime in the Royal City is (sort of) upon us and you know what THAT means!  It’s time for another Celebrity Blog Post!

As many of you know, part of my job as YOUR Guelph REALTOR®, Krystal Moore, is to surround myself with experts in fields that my clients will find helpful.  One such expert is an awesome girl named Cortney Hansen.  Cortney is a Mortgage Specialit with RBC here in Guelph and she is fantastic to deal with!  Cortney takes the time to go through every step of the process with her clients and she works incredibly hard to get the deal done!

Cortney has also agreed to provide this month’s Celebrity Blog Post on the topic of saving for your first home:

Home glossy iconFOUR TIPS FOR SAVING FOR YOUR FIRST HOME

Lately it seems like every time I get together with friends or family the topic of buying a home comes up.  This makes sense considering most of my friends are newly-weds, having children and my career.  Almost every time I am asked for advice and someone says, ““I can’t afford the down payment required to get into a home, so I am forced to pay rent.”

This makes me wonder how many people are deterred from buying a home simply because they believe that they honestly cannot afford the down payment. A common misconception out there is that you are required to have saved 20% of the purchase price for the down payment of the house. This is just not the case.  The minimum amount required for a down payment on an insured mortgage is 5% of the purchase price. On a $200,000 home that would be $10,000 and not $40,000 as commonly believed. This makes getting into a home, at an earlier stage a much more attainable reality.

Here are some tips for saving for your down payment, regardless of the amount you wish to put down.

1.)     Decide how much you can afford.

The first step is to set your savings goal. Meet with a mortgage specialist to determine how much you can actually afford to pay monthly towards your home. This will enable you to discover exactly how much you will require to get into the home you want, and what tweaks to your budget you may have to make to get there.

2.) Set up a savings plan.piggybank

You’ll also need to create a savings plan and set a deadline for reaching your goal. A best practice is to find out what the difference is between your current housing costs and the amount you determined in step 1, and put that away every month into an investment such as an RRSP or TFSA. This allows you to decide if you can really afford the home you want, as when you qualify for a mortgage your lifestyle and other day to day expenses are not taken into consideration in calculations.

3.)     Prioritize

Saving for something important—like a home—is all about priorities. Do you go out to eat all the time, take expensive vacations, buy all the latest stuff and drive brand new cars? Or are you willing to tighten your belt and save for a house? It is up to you. Which is more important?

If saving for a home is one of your top priorities, then try to identify other areas where you can cut back so that you can put more money into your savings. Start by putting away credit cards, switching to a lower costing cellphone plan or cable bill. Stay away from the mall!! There are many books out there on frugal living and how to come up with extra cash when needed, remember to get it from the library and not the bookstore!

4.) Borrow from your RRSP.

In Canada under the First Time Homebuyers Plan, you can borrow up to $25,000 tax free from your existing RRSP plans. If you are buying with a partner  you can each borrow  up to $25,000, bringing you up to $50,000 in savings. However, since HBP is considered a loan you must repay it within 15 years.

For more information about this, or any other related topics, Cortney can be reached with the contact information below:

Cortney Hansen, Mobile Mortgage Specialist

Royal Bank of Canada 

519-841-4349

cortney.hansen@rbc.com

Thanks Cortney!!  For more information about Real Estate in Guelph, or to set up a time to chat, please get in touch for Moore todayKrys@KrystalMoore.com or 519-400-8394.  I’m looking forward to your call and to getting to know each other!

Cheers,

 YOUR Guelph REALTOR®

KMoore Fall 2012Krystal Moore, Sales Representative
Royal Lepage Royal City Realty, Brokerage
Independently Owned and Operated
214 Speedvale Ave. W.
Guelph, ON N1H 1C4
Phone: 519-821-6191
Direct: 519-400-8394
Email: Krys@Krystalmoore.com
Email: Kmoore@rlproyalcity.com

Why choose Krystal? 

I have over 15 years’ experience in Sales and Customer Service, I am motivated, dedicated
and have a solid background in law.  I consistently go above and beyond to make my clients
feel important, valued and appreciated!

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