Common questions when buying a home

Purchasing a property is pretty complex, and almost every scenario is different. There are a lot of key components occurring at once, which can make anyone confused. Here to help ease some of those pre-buying jitters, I have compiled a list of common questions that you may be pondering:

1. What are the current mortgage rates in Canada?

Rates are changing daily and I would recommend that you speak to several professionals regarding a mortgage. However, you are looking on average between 5% to 6% currently  

2. How much can I afford to borrow for a mortgage?

This is dependent on a few key factors like credit score and your total debt ratio. For a rough idea, take a total of your family income and multiply by 40%, then with that number subtract all your current loan payments like car and credit card. 

3. What is the minimum down payment required for buying a home in Canada?

The minimum down payment is about 5% although some lenders may require 10%. You should speak to a mortgage professional; depending on your situation there could be other options for you. 

4. What are the additional costs associated with buying a home, such as closing costs and land transfer taxes? 

There’s a blog post for that! Visit us here to see the rough costs of buying a home.

5. What is the difference between fixed-rate and variable-rate mortgages, and which is better for me?

A fixed rate mortgage means that the rate stays the same for a specific term, usually about 3 to 5 years. A variable rate allows change as the mortgage rate changes. I recommend you speak to a mortgage professional regarding which option would be better for your situation 

6. What types of government incentives or programs are available for first-time homebuyers in Kingston?

As of right now Kingston is offering a down payment assistance program. https://www.cityofkingston.ca/residents/community-services/housing/programs/home-ownership  

7. How does the home buying process in Canada work from start to finish?

I get this question a lot! So much so, that I created a blog post for that too! https://dan-dacosta.c21.ca/2024/03/26/realtors-guide-to-buying-a-home

8. What factors should I consider when choosing a neighborhood to buy a home in Kingston?

Kingston is full of great neighborhoods that would appeal to a large amount of people during different stages of your life. The best thing to do is establish what you need in a neighborhood, such as elementary schools or perhaps an exciting nightlife, and I am sure we can find you an area that works best for you.

9. How do I determine if a property is priced fairly/what factors affect property values in Kingston?

This is where I step in. When we come across a home that you are interested in, I will provide you with a list of comparable properties outlining what they have recently sold for, as well as any other information that i can dig up, so that you are making a very informed decision on the price 

10. What are the differences between buying a pre-construction property and a re-sale property in Kingston?

With a re-sale home you are pretty much getting what you see, and with a new construction you get to make a lot of decision like flooring, cabinets, paint color, etc. However the luxury of buying a new home does come with some added expenses. If this route is something you are considering, then we would go through what the builders are offering in the areas that you are interested and make a decision from there    

11. What is a home inspection, and why is it important?

A home inspection is simply having  a knowledgeable person look over the property the same way you would have a mechanic look over a car and assess the condition it is in. I always recommend a licensed and insurance home inspector to provide you with a full report. Not saying your uncle Gary who does industrial plumbing isn’t great, but inspectors literally do this everyday. They bring a wealth of knowledge and proper tools to assess any property. 

12. What are the common pitfalls to avoid when buying a home in Kingston?

I would say that adjusting your needs vs wants is a big one. Another thing I like to keep top of mind for my clients is that life can change unexpectedly, and making sure that although you have the home of your dreams, you may want or need to sell it in the future. Having a saleable home is much better then potentially losing on your investment in the future. 

Buying a home can be scary of course but with our guidance we always make sure that you are comfortable with any and all of the decisions you make.

Have more questions? Feel free to send anything you want clarification on to dan.dacosta@century21.ca  I’m always happy to help!