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People fear what they don’t understand. For a first-time home-buyer, the decision to purchase a home can be nerve-wrecking. Between finding the perfect house, making sure it is a good investment and understanding the mortgage financing, it is no wonder that so many people are afraid to purchase their first home.

Here are steps to get you started on the journey of home ownership.
Before starting your house search, allow yourself to imagine what it will be like for a home-owner.
For most people, home ownership can be the most rewarding financial turning points in their lives. Picture living in a home with a fenced yard for the kids, a garage for your car, enough room for all of your furniture and in a quiet neighborhood.
One of the biggest obstacles to accomplish this dream is saving up for a down payment.
Banks recognize this dilemma and offer products with low down payment options. You can purchase a home with as little as five percent down payment because of default insured mortgages. Canadian banks are required by law to insure “high ratio” mortgages against default. “High ratio” refers to mortgages with less than a twenty percent down payment.
Default insurance is typically provided by companies such as Canada Mortgage and Housing Corporation (CMHC), Canada Guaranty (CGI), or Genworth Canada. Insurers provide a safety net for banks by assuming all the risk involved with mortgaging a property.
There are many ways to find or save for a down payment. Consider sources such as saving your tax refund, RRSP’s, a financial gift from a family member or take a second job (casual or part time) to save additional funds.
Contact a mortgage specialist and get pre-approved for a mortgage. This will not only give you an idea of how much of a down payment you will require, but will also tell you how much you are able to afford.
Your mortgage specialist will ask for documentation to confirm your employment, income, the source of your down payment and other aspects of your financial situation.
A pre-approval will let you know exactly how much you can spend on a home before you start your search with a real estate agent.
There is a special type of real estate agent called a buyer’s agent that will help you search for the perfect home.
A buyers agent will help you narrow down your property search and can disclose things to you about the seller (or the home) that they would not be able to do if they represented the seller. You do not pay their commission because the seller does.
The quickest and easiest way to get educated about the entire home buying process is to select a mortgage specialist and realtor who offer unbiased professional advice with your best interest in mind. A mortgage specialist’s job is to educate and advise you to make right decisions based on your unique situation.