Becoming a property owner: an important phase of your life

Are you thinking about buying a house and wondering how to go about it?

The first thing to do is to draw up a budget Budget: Complete list of all the estimated spending and income of a business or an individual.   to determine how much you can afford to spend on a house. Your Desjardins advisor in an important resource and can help you do this. He or she will help you analyze your financial situation, pre-approve you for a mortgage and let you know up to how much you can borrow. You'll then have all the information you need to be able to negotiate with a real estate agent or broker.

What to consider when making a budget

When you draw up your budget, remember that you'll need to set aside a portion of your personal assets up to at least 5% of the value of the house you want to buy. This is called the downpayment. The higher the down payment, the less of a mortgage you'll have to take out and the less interest you'll have to pay. If you don't have a minimum downpayment of 5%, let your advisor know. He or she will be able to offer you a solution.

Also keep in mind that there will be start-up costs–inspection, appraisal and notary fees–and the "welcome tax", or transfer taxes. Your advisor can help correctly and realistically calculate how much you can expect to spend on these.

Now you'll be able to move forward and find a house, make an offer on it and select your mortgage loan. Remember that a mortgage is more than just an interest rate–it must also be selected in keeping with your borrower profile. Your advisor will help you determine your borrower profile and help you select the mortgage most suited for you from the range of diversified products offered by Desjardins.

Make an appointment with a Desjardins advisor now. He or she will be glad to help you make your dream a reality, whatever the dream may be.

This column was written by Mélanie Lefebvre, Youth Focus Advisor at the Caisse populaire Desjardins de Mont-Tremblant.