Are you dreaming of a home in Caledon but feel like your dreams get crushed every time you see those sky-high prices? It seems like no matter how much you save that down payment is still out of reach, and rent keeps climbing.
Owning a home should not be just for the few, right? If you’re fed up with the endless cycle of saving with no end in sight, we hear you.
Some of the strategies on how to afford a house in Caledon are:
- Identify what you need before you buy a home
- Get a Mortgage Pre-Approval
- Avail of Government Programs and Incentives
This article will explain more in detail and give you real advice on how to afford a house in today’s competitive market. Stick around because your journey to a home in Caledon starts here.
1. Identify What You Need Before You Buy a Home in Caledon
As you start this adventure, imagine your ideal house. What’s non-negotiable? Is it the number of bedrooms for a growing family or a functional kitchen for your culinary exploits?
Now imagine your perfect Saturday—is it gardening in a spacious backyard or enjoying low-maintenance living in a cozy condo?
Identifying what you truly need versus what you desire will streamline your search. It will also keep you focused on homes that tick your most important boxes.
Don’t Stick to One Type of Property: There Are a Few Housing Options!
Don’t be disheartened if the typical detached home seems beyond reach! After all, your home ownership dream in Caledon can take many forms, including
- Condos
- Townhouses
- Or a charming fixer-upper waiting for your personal touch
These options can match your budget and still fulfill your homeownership dreams! What’s more, you can choose a cheaper place to live in in Caledon.
2. Get a Mortgage Pre-Approval: It’s a Must in Real Estate!
Let’s demystify budgeting by thinking about the house price. You will have to consider the following:
- Your monthly mortgage
- Property taxes,
- Insurance
- And the inevitable upkeep.
These all add to the true cost of homeownership. I would like to suggest, why not tap into the expertise of mortgage brokers and financial advisors?
They’re invaluable allies who can help you understand what you can afford. They’ll also help you streamline the mortgage pre-approval process.
This proves to sellers that you’re not only serious, but also equipped with the knowledge of your borrowing capacity.
Saving for that down payment is like paving the road to your Caledon home. Strive for that 20% down to sidestep private mortgage insurance.
3. Avail of Government Programs and Incentives for Buying Houses
You shouldn’t walk alone in your journey to saving.
The Government of Canada offers home buying programs and incentives, for example:
- The Home buyers’ amount
- GST/HST new housing rebates
- And The Home Buyers’ Plan (HBP).
These incentives can be a significant asset in your home-buying journey. They offer financial help through tax credits and rebates.
Here’s how they work:
The Home Buyers’ Amount
You can claim up to $10,000 when you buy a qualifying home if you’re a first-time buyer or a person with a disability.
That is, provided you or your spouse or common-law partner have not owned and lived in another home in the year of acquisition. The same applies if you haven’t owned and lived in a home in any of the four years preceding the year of acquisition.
If you’re married or in a common-law partnership, only one partner needs to satisfy these conditions to claim the amount.
GST/HST New Housing Rebate
You may be eligible for a rebate on some of the tax you pay when you buy a home in Caledon (as is in Canada.)
Of course, you will need to check if you meet the specific conditions in Guide RC4028.
The Home Buyers’ Plan (HBP)
The Home Buyers’ Plan (HBP) enables you to withdraw up to $35,000 from your RRSPs to buy a house or build one home for yourself or for a person with a disability.
Additionally, it’s possible to make withdrawals under the HBP and from a first home savings account (FHSA) for the same property. That is if you meet all conditions for each withdrawal.
You can find the details on the FHSA information page.
Closing Thoughts on How to Afford a House in Caledon
It’s clear that opportunities abound as you embark on the exciting journey toward homeownership in Caledon. Government rebates and smart financial planning can make your dream home a reality.
Ready to take the next step? Tell us, the Bill Parnaby Team, more about your dream home in Caledon! We’re excited to give you personalized recommendations from decades of local expertise.
Your key to Caledon awaits. Let’s get going!
