Bonnyville Homes Blog

Looking to buy your first home? When it comes to buying a home there are a few things to consider, especially when it comes to your rights.

For one thing, potential buyers should never feel pressured to “buy” a home. Unlike the token car salesman approach, buying a home can be stressful and require a lot of consideration.

Some tactics that real estate agents may utilize is that they will let potential buyers feel the pressure of, if you don’t decide now, someone else will buy it.

Another tactic real estate agent may use is when they think a potential buyer can “afford” more they will talk about what they should put down – this is not the job of a real estate agent but a broker.

Another thing that a potential homeowner should always keep in mind when it comes to potentially buying their dream home is that they are entitled to have it inspected with their own home inspection agent. Just because a home may come with its own home inspection report, if you feel the need to have your own inspection, the real estate agent or

seller can’t deny that. Should the homeowner choose to deny a home inspection or push for one to not happen – I would advise to not move forward. If anything, be concerned that there may be some hidden underlying problems that they don’t want anyone to know about.

Buying a home is not a small decision or undertaking. It is important that all necessary precautions are taken and that as a buyer, you feel confident in making the purchase. When you have a good team behind your decision to enter the real estate market, they will have your interest in mind and protect your buying rights. Listen to your instincts but also your real estate agent when it comes to buying your dream home!

When it comes to that first home, there are a few things that need to be considered – the down payment (which is a significant factor) and the type of interest rate you want.

A down payment can range from as low as 5% upwards to 20%. It’s important to consider though, just because you put down a higher down payment, it doesn’t always make things better. Imagine putting down a down payment of 20%, and then realizing you have spent all your savings – this is what we call “house poor.” You want to avoid this situation.

Now interest rates, there are two types that as potential homeowners you may encounter – fixed or variable.

What’s the difference between the two mortgage rates?

Fixed –

With a fixed mortgage rate, this means that that interest will remain the same and not change during the loan. For example, if the interest rate that a new homeowner is qualified for is 6%, whatever 6% is of the principal loan is what they would pay monthly.

Variable –

For a homeowner who is entering the market, one thing that they will likely focus on is the mortgage rates. Sometimes the market will find itself in a situation where the mortgage rate at the moment is at a highly competitive interest – the risk? This rate may not stay the same throughout the life of the loan, making it a variable mortgage rate.

Is one better than the other?

When it comes to determining whether or not to go with a fixed or variable, consider if whether or not financially you can afford when the rates go up. Some mortgage brokers may be able to facilitate an interest rate that combines both aspects of a fixed and variable, in that you can start off with a fixed rate, but at the end of a term, it can increase to reflect the influx in the rate.

Know what your budget is monthly. If you are a bit of a risk-taker, going with a variable mortgage rate may be ideal for you; however, if you prefer to know what your budget will look like down the road, fixed it is.

Imagine going away on vacation during winter and coming back to discover a pipe has burst and resulted in flooding and damage to the home. If you don’t have home insurance, the cost involved in repairing the damage will come out of one is pocket. However, if you have home insurance, this would not be the case. You would pay a deductible and have costs covered.

What is home insurance?

Having home insurance coverage protects your home from any unforeseen damages – whether they are caused by natural disasters or pipes bursting. With having home insurance, it protects the homeowner from having to pay out of pocket on the repairs and replacements of damages.

Things covered in home insurance?

While having home insurance may provide comfort to homeowners, one must understand what is covered. Not all home insurances are designed the same. For example, depending on the city you live in, earthquake or flood damages are not always included.

What would be covered though is if there are structural damages – from windows to roofs and foundation. It is essential not just to presume that home insurance covers the home itself because it can cover the belongings of a home. This includes furniture, clothing and electronics.

Is liability coverage the same as insurance?

Liability coverage is something that helps pay for differences if not offset the costs. For example, if you are getting landscape done and the company damages your neighbour’s property. In this circumstance, rather than this coming out of one’s pocket, insurance would be able to pay for the damages.