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5 Things I Wish I Knew Before Buying My First Home

September 10, 2018

I think it’s safe to say that owning a home is something most people dream of. But nobody really talks about the emotional rollercoaster and tough decision-making that come hand-in-hand with the home buying process. With skyrocketing real estate prices, our increasingly busy lives and the countless bumps along the way, purchasing your first home can cause a lot of personal and financial stress. At least it did for us. That being said, the end result is almost always worth the journey: it’s truly a special feeling to have a place you can call your own. So, if you’re thinking about buying a house, don’t hesitate and DO IT (see point #3). Just try to avoid some of the mistakes we made…

Photo c/o Sik Photography.

5 Things I Wish I Knew Before Buying My First Home

1. The Additional Costs Of Buying A Home

Perhaps the biggest rookie mistake of all? Thinking the purchase price of your home is all the cash you need to fork over. It’s so important to understand the other expenses involved when buying a home — I wish I did! Some will pop up at the beginning of the home-buying process (like property valuation fees, home inspection fees, property survey etc.) while others will roll in when your home purchase is finalized (legal fees, title insurance, land transfer tax, home insurance etc.) Oh, and then there’s all the utility bills and what will feel like an endless list of repairs that can suck up a lot of savings. Given all these financial considerations, I strongly recommend buying a home that’s priced a bit lower than you think you can afford. That way you leave some wiggle room and don’t have to stress out about any of the hidden costs that come your way.

2. The Mortgage Options

I wish we knew about all of the different mortgage options out there and understood what we were getting ourselves into before purchasing our first home! Like many young couples, we were a bit lost and relied on the advice of our realtor. While they can be a great resource, it’s important to shop around and pick the best mortgage for your situation because the term and type of mortgage (open/closed/fixed/variable) will have a direct impact on your bottom line. The most innovative mortgage solution I’ve heard about recently is Manulife One. It actually brings your savings, income and mortgage together to help you save thousands in interest, simplify everyday banking and most importantly: be debt-free years sooner. How? Every deposit that you make into the account reduces your debt, saving you interest costs until you need to withdraw funds again. This means you can pay down your debt on your terms, not on your bank’s terms. Brilliant. Wish we knew about this when we bought our first home.

3. The Sooner, The Better

My number one regret? I wish we bought a house even sooner than we did. Having a home is such a great investment and with the low market prices ten years ago it would have been a genius move to purchase our first property back then. But, we can’t dwell on the past so – after coming to this realization – we got the motivation we needed to buy our second and third properties with zero regrets. Although it does depend on where you live, I honestly don’t know anyone who has seen a drop in their property value so if you can afford it: buy now!

4. Set A Firm Budget And Stick To It

I admittedly sucked at this part. Hubster and I chatted about the price range we were comfortable with and as soon as we stepped inside a few houses we loved, I suddenly wanted to “adjust” the upper bracket. That’s a big no no. I really wish we stuck to our spending cap — we were a bit too flexible the first time around. Realtors will always show you homes that are a bit out of your reach and with the insane bidding wars happening in today’s market, this can land you in a very sticky and emotionally charged situation. Be strong my friends, be strong!

5. Keep Future Buyers In Mind

We all have a bit of tunnel vision when purchasing a home — especially when it’s the first one. While it’s important to buy a property YOU love, I highly recommend keeping your future buyers in mind when making such a big investment. Just because you don’t need that extra bathroom or parking spot doesn’t mean it won’t be high on their list. In fact, those could be the features that deter them from making a deal. Oh, and the more research you do on the front end (to locate nearby schools, community centres, shopping areas etc.), the more likely you’ll attract a bigger pool of potential buyers when selling your home.