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BUYING A HOUSE IN CANADA | First Time Home Buyer Guide - YouTube
Channel: Bald Prairie Real Estate
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- Are you a first time
home buyer in Canada?
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Well, seeing as you clicked on
the video that has the title
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"About First Time Home Buyers,"
I'm gonna guess you are.
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But you're probably thinking right now,
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"What the heck am I doing?
Where do I even start?"
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Well, you're in luck.
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On this episode of Bald
Prairie Real Estate,
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we're gonna go through what I call
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the three phases of buying a house.
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And each one of those
phases will get three steps.
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So, this is a step by step guide on how
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to buy a house in Canada.
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By the time you're done
watching this video,
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you're gonna feel like more of an expert
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than most real estate
agents in this country.
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First time home buyers,
this video is for you.
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(synthesized music)
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Hey guys, welcome back to
Bald Prairie Real Estate.
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Now, I might be your favorite bald realtor
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on YouTube, but my friends like
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to call me Matthew Pfeifer
when they're being nice to me.
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I'm a real estate agent
in Regina Saskatchewan
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and if you like keeping up to date
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on the Canadian real estate market
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or you just like gettin' good
tips on how to buy and sell
[55]
real estate or get educated
on real estate topics,
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go ahead, hit that subscribe
button so you never miss
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another of my videos or my terrible jokes.
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And this one is a great one guys.
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So, especially for you
first time home buyers,
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you're probably thinking now, real estate
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in Canada has gotten so expensive,
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you've gotta be a cat to buy it
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because you're gonna need
nine lives to pay it off.
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(drum and cymbal crash)
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On this episode of Bald
Prairie Real Estate,
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what I want to go over
is what I like to call
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the three phases of buying real estate.
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So, we're gonna break
down those three phases
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and the steps within
them, so you know exactly
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what you need to do when you're
buying a house in Canada.
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And for first time home buyers,
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I think this is really important
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because you're probably
feeling really lost right now.
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And that's okay.
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So, what I'm gonna do here
is, we're gonna turn this
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into just a conversation.
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It's kind of like if I just met you,
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we were sittin' down over coffee,
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getting' to know each other,
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and figuring out what we
need to do to make sure
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you have the best experience
in buying a house.
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I'm gonna run this
video exactly like that.
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So, just a conversation between you and I.
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We're gonna help you
find the perfect house.
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Phase one, this is where basically every
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first time home buyer is gonna start.
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When I first meet with buyers,
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usually this is where they're at.
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So if right now, you're feeling lost.
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You don't know where to
start, who to talk to,
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where to even look for houses.
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That's okay, because that's
where most people start.
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And of course, the most
important thing you need to do
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is you've gotta have your
down payment saved up.
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In Canada, you have to
have at least 5% down
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in order to buy a house in Canada.
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But, if you have less than 20% down,
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you've got to get default
mortgage insurance.
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And I'm gonna cover that in
a larger video at some point,
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but if you wanted a quick crash course,
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I'm gonna put a video up right here.
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It's talking about CMHC's changes
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to default mortgage
insurance, but in there,
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I've got a crash course dedicated
entirely to talking about
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what mortgage default insurance
is and why you need it
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and why it's important.
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Step two is probably
the most important step
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you're gonna take in buying a house,
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and that's getting your pre-approval done.
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And no, this isn't one
of those online, quick,
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hit a couple buttons, boom,
instantaneous approved
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for a mortgage, you're good to go.
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No, what you want to do
is you want to sit down
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with either your bank's
mortgage specialist
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or a mortgage broker and have
them do a full pre-approval.
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They're gonna verify you've
got your down payment,
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they're gonna verify your income,
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and pull your credit score.
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They're gonna make sure
that everything is ready
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to go financially for
you, because if you don't
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have that done, sometimes
those things like
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an old cell phone bill you forgot to pay,
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they come up to haunt you
when you've got a deal
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written on your dream
house, and all of a sudden,
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you've got to take care
of some financial stuff
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that you didn't expect,
and now you're in a panic.
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You don't want to have that happen.
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So, you want to get
that done ahead of time,
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because then you're also
gonna feel very confident
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any time you walk in the house knowing,
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"Hey, I can afford this
house. I'm ready to go."
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Your last step in Phase one is creating
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a needs list and a wants list.
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So, what you want to do
here is create a list
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of things that hey, you have to have this
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when you're buying a
house and a list of hey,
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this would be really great
if I could have this.
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Sometimes, though, it's easier
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to almost kind of work
this question backwards.
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Maybe start with hey, these
are deal breakers for me.
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I can't have this in a
house, I'm not gonna buy it.
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So, things that I would
consider as must-haves
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are you know, location, and
bedrooms, maybe a garage
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is a must-have, you have to have that.
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And then there's some things like wants.
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Want an updated kitchen,
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I want a certain type of
flooring, things like that.
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So, start with that.
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It's not only gonna help you
when you're going through
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homes because you're gonna
have essentially a checklist.
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And go, "Yep, this meets that."
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But it also really helps
us, your real estate agents.
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I wish I could read your
mind, because if I could,
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I promise you I would
find the perfect house
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right away for ya.
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But, we don't have that ability yet,
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maybe we'll get it in the future.
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So, make that list of wants
and needs, write it down,
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and it'll help us find
you that perfect house.
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Speaking of wants and needs,
if you're buying a house
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right now, put in the comments below,
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what's something that you absolutely
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have to have in a house
that you wouldn't buy
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a house unless it has it.
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I'm curious to know, what
do you guys find important?
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Okay, so, did I bore you to death with all
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of those financial
details and prep work that
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doesn't seem like it's important
to buying a house at all?
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Well, you probably already
clicked off anyways,
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so hey, thanks for sticking around so far
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because guess what?
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Now you're in the fun phase, Phase two,
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shopping for a house.
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And this is something
that I really enjoy doing.
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I like going out and
showing people houses,
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even though it takes a
lot of time, sometimes.
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That's okay.
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I love having conversations
with my clients,
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getting to know them better,
building that relationship,
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and finding that right house for 'em,
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because you know what?
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Almost always, you know right
away when it's the right one
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as soon as they walk in the door.
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Okay, enough of me
rambling on about how much
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I like showing houses.
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You came here to learn, so let's talk
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about first step in phase two.
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So step one is when
you're actually going out
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and physically looking at houses.
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This is the fun part.
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You're gonna go through
them, and you should have
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that checklist I talked about,
that wants and needs list.
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Go through and start
marking off, does this house
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fit that criteria you've outlined
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that you've said is important to you,
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and sometimes it can be tough to look past
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hey, this house has got a
fantastic kitchen, it's beautiful.
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Make sure it fits that list
because that's important.
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But I'll let you in on a little secret.
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You'll walk into a house,
might be the first house,
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might be the fiftieth, but
you're gonna walk in and go,
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"Wow, this is perfect."
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Because the mentality you want when you're
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looking through houses is do
you see yourself living there?
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And if the answer to that question is no,
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quit the showing right then,
go onto the next house.
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There's no point in even
wasting time continuing
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to look through it if
you're not feeling like
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that's the right house for you.
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It's not the right one.
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But what you will do, is
you'll walk into one house
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at some point and you'll go,
"This is absolutely perfect."
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And that's probably the one
you're gonna end up buying.
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It's one you should think about, for sure.
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As you're going through
showings, and I only book
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maybe three to five at a
time, going through too many
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more than that, they become a blur
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and it's tough to remember them all,
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but it's also nice to go
through a few back to back,
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because you can compare and contrast them,
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and it'll give you a good idea
of what's gonna be available
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in your price point,
or in the neighborhood
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you're looking for.
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It'll really help having that comparison.
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Now you've found the
absolute perfect house.
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You gotta write an offer on
it, so let's go through that.
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Now, I'm gonna talk about
conditional offers here.
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I know in some of those
really hot real estate markets
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in Canada, you guys are
writing unconditional offers
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and that's a whole different
beast when you get into those.
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But I'm gonna talk about
conditional offers.
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This is what you're gonna
find in a balanced market,
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or a buyer's market, and even
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in those hot real estate
markets, I think this is
[442]
important to have conditions to an offer.
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So, things like your financing
and your home inspection.
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Those are important things,
and I highly recommend
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doing them in every
single offer that you do.
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Get to know that house inside and out
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through things like a home inspection.
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And I'm gonna go through
those a little bit later here.
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Because guess what? That's the last step.
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There's three big battlegrounds
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when you're writing an offer.
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The first one is pretty easy, price point.
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The second one is gonna
be the possession date,
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and the third one is
gonna be the inclusions.
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Let's start off with price point.
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As you're going through
houses, you're gonna
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start to get a feel for
what pricing is like
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in your neighborhood for the type of house
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you're looking for, but
your real estate agent
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is going to have to go
through and show you
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all the comparables in the neighborhood
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that have sold recently, higher and lower.
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Don't be afraid to walk away from a deal
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if it's not right, especially
on something like price.
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Make sure you're comfortable with that.
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An agent's gonna be able
to guide you through that
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and where pricing needs to be.
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Possession date is another important one.
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Sometimes sellers have
specific possession dates
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they want to hit because they
have already bought a house
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and they're trying to overlap those.
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And maybe you've got a rental
place that you're trying
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to get out of, and you
want to make sure that
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possession date lines up so
you're not double-paying.
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So, possession date is
an inevitably gonna be a
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battleground, and the
third one is inclusions.
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In a house, think of it this way.
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Anything that's screwed down to the wall,
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that's considered including.
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If it isn't screwed down
to the wall or floor,
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you have to ask for it in the offer.
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So, something like
appliances, a fridge, it's not
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screwed in anywhere
typically, that's why you've
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got to ask for things like
that in your inclusions.
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Rank those as to what's
most important to you.
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Whether it's price point,
possession, or inclusions,
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and try to go after
that when you're writing
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your offer of that order of importance.
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So, if price point is the
most important thing to you,
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go and try to get the
price points you want.
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You might have to give a little bit
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on possession date and inclusions.
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So, that's kind of the quick overview
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of writing a conditional offer.
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The last step in phase
two is your inspections.
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And you should get that house
inspected top to bottom.
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Again, I know in some of
these hot real estate markets,
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home inspections are a detriment
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to getting your offer
accepted, but I highly
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recommend you do inspections.
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So, a home inspection's
gonna do a good job
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of covering kind of house top to bottom
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with a general overview,
but you should make sure
[576]
you get any specific
questions that are maybe
[578]
specific to your area answered.
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My area in Regina, we have bad basements
[584]
because we've got very expansive soil.
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I'm gonna put up a few
photos here somewhere.
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You guys not from Regina
are gonna be horrified
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to look at these photos and what basements
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look like in Regina.
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So, foundation inspections
are really important
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to Regina, but two
hours away in Saskatoon,
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you wouldn't worry about them
[600]
because it's pretty much a non-issue.
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So, go through, get your inspections done.
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That wraps up phase two.
That's the fun phase.
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Phase three is kind of the boring phase
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of all the phases, but
it's the details phase.
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And this is really important, okay?
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The first part of phase
three is removing conditions.
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So, you've put all those
conditions on your offer.
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You want to make sure
that those conditions
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are all satisfied and you
have no more questions
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with the house.
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So, you've got your financing
approved the way you want it.
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You've got all your inspections done.
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You've got any questions asked there.
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If you remove conditions
and you change your mind,
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that deposit that came with that offer?
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Well, now that's in jeopardy.
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The seller may be able to claim that.
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So, once you've removed
conditions, there's now money
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in the game here that you might lose.
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So, make sure you are
absolutely 100% satisfied
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before you remove conditions.
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Again, it's the details.
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Step number two in phase three is gonna be
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making sure you've got your investment,
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because that's what it is.
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You're buying a house,
it is an investment.
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You've got it insured.
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Now, people think, "Okay,
home insurance, I'm done."
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That's not it, although home
insurance is very important.
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You have to get that done
[667]
before you can even take possession.
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But there's also two components in here
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that are really important,
and that's gonna obviously
[673]
be life insurance but
also even more important
[676]
is gonna be disability or
loss of work insurance.
[679]
These things are really
important obviously
[681]
if you were to pass away,
you would want a policy
[684]
in place to pay that investment
out so that your family
[688]
or whoever you're leaving that house to
[690]
doesn't have a debt,
but also loss of work.
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This is really important.
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Nowadays, as people have been out of work,
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having an insurance policy.
[698]
Now COVID-19 probably
isn't covered under most
[701]
people's insurance
policies, but if you were
[703]
to get injured in a car
accident or something like that
[705]
and you're not able to work,
having an insurance policy
[708]
in place to pay for that
home is really important.
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The last thing you want
is to be out of work
[713]
and lose your house
because you're out of work.
[715]
I've seen it happen guys,
I've had clients who have lost
[718]
their home because of a
disability and they didn't
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have any insurance in
place, so you don't want
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to be in that situation where
you can't pay for your home
[725]
because you lost your job.
[726]
You finally made it.
You're at possession date.
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The last step in buying a house,
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and this is a fun day for me.
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I really enjoy giving people
those keys and saying,
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"Open the door for the first
time for your new house."
[738]
But there's a couple of things
you've gotta think about.
[740]
First off, usually when you
write those offers, you're gonna
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put in there a date and
a time for possession.
[745]
So, 10 a.m. on a Friday.
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Don't book your moving truck
for 10 a.m. on that Friday.
[750]
I promise you, Murphy's
Law, because you booked
[753]
them at 10 a.m., something's gonna happen,
[755]
there's gonna be a small
hiccup and a delay,
[756]
and you can't take possession 'til 12
[758]
or something like that.
[759]
So, don't book the
moving trucks for 10 a.m.
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Assume things are gonna
happen but be prepared
[764]
if they don't quite happen on time.
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The delays can be frustrating.
[767]
I know, I see it all the time.
[769]
And then when you get there,
you want to do a quick
[771]
walk through the house.
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Make sure that all the house
possessions you asked for,
[775]
the inclusions, you know
with the appliances,
[777]
things like that, make
sure they're all there.
[779]
I've been through it before
where you go to a house,
[781]
and you asked for the
appliances to be included,
[783]
and the seller took them.
[785]
It happens, usually it's by accident.
[787]
They forget that something
was supposed to be included
[789]
and they took it with them.
[790]
So, go through that, make
sure that the whole house
[792]
is as expected, and make
sure it's in the condition
[794]
you expected, that it's been cleaned up
[796]
and everything like that.
[797]
Again, it happens, sometimes houses
[799]
aren't really in the condition
you expect them to be.
[801]
So, do a walk-through as
you first take possession
[804]
of the house, make sure
everything is as expected.
[807]
There you have it, three easy steps.
[808]
Easy peasy, you can get a house bought.
[810]
Do you feel like an expert yet?
[812]
You probably got a few more questions.
[813]
Go ahead, put 'em in the comments below.
[815]
Maybe there's something I glossed over,
[816]
you want more information on,
[817]
so put it in the comments below.
[819]
I'll get it answered for ya.
[820]
And if you're a first time home buyer,
[821]
you probably do have some questions.
[823]
That's okay, I've got a
whole series of videos
[825]
dedicated to you, the
first time home buyer.
[827]
I'll put it right here, so check that out.
[829]
It's probably gonna answer
a bunch of your questions.
[832]
And if one of those
questions is, "Where the heck
[834]
is the real estate market
going? What's happening?
[836]
Is the market gonna crash or
is it going through the roof?
[839]
Are we in a really hot seller's market?"
[841]
Right here, that's where
[842]
the Canadian real estate market is at.
[843]
You can check that video out.
[844]
Thanks for watching guys,
and if you like this video,
[847]
give me the thumbs up.
[848]
Even better, hit the subscribe button.
[850]
I really appreciate all of your support.
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