🇨🇦 We saved 1000's $ on Renting | How we bought our first house in Canada| Young Canadian Family - YouTube

Salaam, Namaste and Sat Sri Akaal.

I hope you guys are having a beautiful day.

Welcome to our channel ‘Mumsmantra’.

In today’s video, we’re going to cover, How you can buy a house in Canada?

If you are new to our channel, thank you so much for stopping by.

I’m Richi, I’m Deepak, and we’re proud parents of a fifteen-month-old, sweet baby girl, ‘Arshya’.

This is Arshya, our fifteen-month-old.

We normally make videos on childhood and pregnancy, but since recently we’re moving to our house, we thought of creating this playlist for you guys.

In which we can share our experience, learning curve, and the mistakes that we did.

So, I hope you enjoyed this home series.

Today’s episode is gonna be ahh...

So, before jumping into a market what we did?

We as a couple, we sat together, talked about our finances, and talked about how mentally we’re ready to buy the house? Right?

Right.

As a couple, you’ve to mutually decide three things, which are:-

First thing - How mentally are you prepared to buy a house.

because, every house irrespective that’s your townhouse or a detached house, comes with the maintenance,

from cleaning of the house,

to lawn moving outside or maintaining backyards,

How ready you’re as a couple, how ready are you to share responsibility?

The second thing -

If you’re also in the same phase in which we were in two years ago,

that means you might want to start your family soon.

So, you would also like to consider

that you wanted to raise your kids in a condo or a rented property versus your own property,

where he’ll have more privacy, maybe there’ll be a backyard to play.

These were the factors we decided on.

and the third and the fourth most important factor was financial.

Right. Our initial objective was to come out from the phase of renting and buy a house.

because the amount that we are paying for the rent,

say, for example, we started paying like $1200 to $1500 till the end.

So, we thought,

why don’t we buy our own house,

and we can use the rent’s money for the downpayment so that we can build equity also.

So, when Richi is saying about the financially ready position,

to become financially ready there are a lot of things that you have to take care, right from the day when you enter into Canada.

Right.

So, first thing is-

You have to make sure that you get the right credit cards

and do the transaction from it for any purchases like your groceries, daily food consumptions,

any small-big expenses,

so that your credit history starts from Day 1.

Right?

Secondly, the most important thing is that you have to start saving from Day 1.

I know that we Indians and South Asians are very good at saving money,

but you have to make an aim/an objective that

you’ll keep a fund separately in your bank account, which will come in hand as downpayment in the future.

So, in addition to that point, when you’re coming to Canada with your spouse and getting a credit card,

make sure that you get both of your names on the credit card

so that in case if you are not going shopping together,

whosoever is utilizing the credit card, the credit history be made on both of you.

Right, this is important because when you create your credit score,

then you both should have a good credit score,

because most of the time when you go-to lender to take the mortgage

then the history of both of you is seen and on that basis, you get loan approval.

True.

So, Deepak let’s help our friend, around how much down payment should be saved?

Well, technically, if you are willing to buy any house,

then you need 20% downpayment depending upon what’s your budget.

20% is the minimum you want to have

to avoid the CHMC Insurance fee, which is huge if you are paying less than twenty percent.

So, in line with the down payments,

it’s very important that you save some more from expenses,

around 1.5 - 2% of your property which you’re estimating.

Now, these expenses go towards the Administration fees or Lawyer fees,

which you give in Closing of the House and that’s called “Closing Cost”.

Right.

If you’re financially and mentally ready, then very first step is to take is - to get a pre-approval for a mortgage.

Let’s talk to them about the importance of mortgage pre-approval.

Right.

The most important objective of taking mortgage pre-approval is that you will get to know your affordability.

now, to give mortgage you need to find a Mortgage Broker,

Mortgage Broker can either be a Bank or can be a Private Lender.

So basically Mortgage Agent can tell you

’which lender is giving you what mortgage at what interest rate’ by looking at your finances,

and it seems like a bit of work but it saves you from so many things.

First, Mortgage Agent blocks interest for you up to 120 Days,

and the second point - you get to know the monthly estimate about your payment towards the mortgage.

So, one thing to consider,

the Canadian Government is very supportive to first time home buyers and they offer lots of incentives.

Something you should definitely be aware of.

For example,

land transfer rebate as far as I remember,

and you can also withdraw up to $25,000 from RRSP without any penalty which is great, right?

Yeah, It’s very helpful.

We don't realize it now but at the time we will need cash and all these things are very helpful.

True it’s a big support offer by the Canadian Government, not many govt do that across the world.

Right.

So, now you have money in your bank for downpayment and you’ve also got mortgage approval.

So now this is peace in the mind, you can start looking into a house actually.

So, first thing you’ve to decide your location like where you want to get your house

When you’re done with the location, now you’ve to figure out the types of houses available within your budget.

The best source is “realtor.ca”.

This is a website,

in which every house that comes in the market is registered

with every information like how much is that offered, sq. ft., number of bedrooms, number of bathrooms, etc.

everything is there with the pictures.

So the best advice which we also followed that do check out “realtor.ca” before going out physically,

Put location, your criteria, and check for the available options in the market.

It’s a good dry run basically.

Right. You’ll get an idea that yes there are options available in our budget also.

So now as Deepak was saying, looking into “realtor.ca”, it’ll give you a pretty good idea about the locations,

for e.g, according to Toronto location,

V/s GTA V/s Extended GTA

among which locations

are you getting a Townhouse or a Detach House or a Semi Detach house according to your affordability.

Please keep in mind,

the houses in GTA and Toronto will cost you around a million or more than that,

the same (a brand new house) you’ll get easily within 600k-700k in extended GTA.

So the crucial step now is to find a good realtor.

A Realtor could help you in so many ways. Actually realtor could be your best friend. Right?

Right.

Realtor negotiates on your behalf if there are back and forwards, or too many offers with the selling party.

A good realtor can help you in providing good inputs,

like which property is worth it in around what price for offering.

Apart,

a realtor can do research for you

looking around for properties in the area sold at what price,

and they’ve early access to all the listings due to which you can get a chance to visit the property first,

and the cherry on the cake is

that you don’t have to pay anything to the realtor,

it’s only the selling party who’s actually paying to the seller.

Now, if you’re going for the new home,

you probably don’t need a realtor, but for the old house, we really recommend you having one.

Right.

Now talking about buying a New House V/s an Old House.

Well, both has their own Pros and Cons. For Example-

New House may have cons,

you’ve to make driveway, backyard,

but it comes with a charm that, you’re going to a brand new house

which is newly built, there are cabinets and walls according to your choice

V/s the Old House,

where everything has been designed for you,

you’ll probably get a readymade backyard,

grassing will be done, would be a nice driveway, interior work must be done.

But, it may be possible that it’s the time for Old House’s roofing,

which could include the expense

or any interior expense that you may have to spend.

This is a topic for another video which we’ll be making separately in brief for you.

You might find that this video is very overwhelming and quite long,

But,

we want to encourage you guys,

not being disappointed that you too can afford your own house in Canada

with a lot of hard work and of course smart move.

Yeah, and it doesn’t matter that in which stage are you now,

maybe you’re a student, you’ve come as an international school for studies,

maybe you just started working for your new job or something.

Just make sure that you take the right steps, always be informed, and start saving.

Your aim should be that after 2-3 years from today you wanted to buy your own house.

A simple philosophy that we referred to is buying a house is a big step for both of us.

It’s a big achievement in our life which we’ve done together.

So, it should be rewarding,

it shouldn’t be a burden

that we buy a house out of our affordability

and we strain ourselves to pay the downpayment or monthly payments

If you want to get more familiar with us,

you can watch more videos of ours on our playlists at the MumsMantra youtube channel.

Right. And don’t forget to Subscribe for our upcoming videos, because we want to cover the entire series,

in which we will show you the detailed process,

How to find Mortgage Agents?

How to find Realtors?

How to discuss with the bank?

How to get possible rates?

Enough enough, don’t tell everything in this video.

Subscribe Please.

ThankYou