Purchasing Presale in Today’s Market
Buying a new home can be scary, it can be a lot of work and there may not be a lot of things you know about the process. To help ease some of your fear, we have carefully curated a few insider tips on what to consider when purchasing your next home, and why you should strongly consider buying pre-sale.
Deposits & Down Payments
Did you know that many new developments only require a deposit of 5-10% to hold your home? This allows you more time to save for your down payment before your completion date. Buying presale secures you a home, that appreciates in value – without having mortgage payments until completion.
It’s important to understand that your deposit is not the same as your down payment; however, even with a 5% deposit, you have time for savings that can be paid directly to your financial institution, which will ultimately decrease your mortgage payments and mortgage insurance costs.
Holding Interest Rates
Many financial institutions can hold your interest rates for up to 24 months, which offers homebuyers additional peace of mind. This means that you can take advantage of low-interest rates offered today, even when buying presale!
The longer the rate is held, the higher it will be; however, the institutions will honour the current rates at the time of completion if it is lower than the one you were holding.
Create a Plan
There are several factors that apply to getting your mortgage approved. Connecting with a mortgage broker to create a plan will help you see which areas that need strengthening to get approved for your desired amount. Brokers will be able to help you brainstorm financial solutions, including developing a savings target for your down payment, adding a co-signer, and more.
Some great mortgage brokers that we recommend:
Rebecca Awram, Dominion Lending Centres
(604) 614-2382 | email@example.com
David Gilbraitti, Dominion Lending
(604) 505-3283 | firstname.lastname@example.org
Abdul Safi, TD Bank
(604) 626-5665 | email@example.com
Additionally, connecting with a professional accountant is recommended to ensure your understanding of the taxes applicable to your purchase. There are a number of exemptions and rebates surrounding GST and Property Transfer Tax that should be considered when working with a budget. There is also a first-time buyer tax rebate that can be taken advantage of!
Have we inspired you to consider pre-sale for your next home? If so, check out our Find a Home tool on our website to browse our current pre-sale developments!