Buying Tips

Pride of Home Ownership

Pride of home ownership is the number one reason why Canadians desire their own home. There is no landlord looking over your shoulder. You are able to make home improvements knowing that any appreciation that results will be to your benefit. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Appreciation

In Canada, especially in the last few years, homes have appreciated considerably and in doing so have added substantially to owners net worth. Also, in Canada your principal residence is exempt from capital gains taxes.

Mortgage Reduction Builds Equity

Each month, part of your monthly payment is applied to the principal balance of your home loan, which builds your equity. You can borrow against a home's equity for a variety of reasons such as home improvement, sending your kids to university or college, or starting a new business. Why pay-off your landlord's property when you can own your own?

Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they have can use, improve and sell. Their home is a safe haven for investment.

First – do you have the financial resources?

You should have five percent of the purchase price of a home for the down payment, but ideally even more. Are there other priorities in your life e.g. starting a new business, which require your savings? If not, buying a home should be on your radar.

Second – do you expect to stay in your new home for some time?

Moving can be expensive and you will want to build some equity before having to relocate. Your job and home life should be stable.

Pre-Qualify for a Mortgage

If you haven't already gone through the mortgage pre-qualification process, you will need to meet with a lender or mortgage broker.

Mortgage shopping can be daunting for those who've never done it before. It's tough to know you're getting the best rate, or, if the terms and conditions of the mortgage are best suited to your specific circumstances. And haggling may not be one of your strong suits.

With this in mind, these are reasons to consider enlisting the services of a mortgage broker as they provide their services for free to borrowers. Their commission is paid by the bank or lender providing the mortgage product. A mortgage broker has the educational background and training to provide a consumer with choices that fit their needs. Mortgage rates vary considerably and it is paramount that you choose someone that will shop around for the best rate, terms and options.

We would like to take this opportunity to introduce to you Global Empire Corporation's in-house mortgage specialists.

Global Empire Corporation's team of professional licensed Mortgage Associates, with access to a variety of banks and lenders, will establish how much of a mortgage you will qualify for and then do all of the legwork for you in terms of paperwork and negotiating with lenders.

To contact one of their Mortgage Specialists visit www.globalempire.com or call 780-454-3444

• Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?
• Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you have family members with special needs?
• Do you plan to have children? Downtown or suburbs? Proximity to recreation or work.
• Do you need a substantial backyard? Pets?
• Is there adequate storage space?
• Will any remodeling be required to make the home move-in ready for you?
• What service provider (cable, Internet, telephone, Satellite) is available in the area, and is the house completely wired for each? How good is the cell phone reception?
• How much are the yearly property taxes?
• How much do utilities run each month? Does the house use gas or electric for the furnace, water heater, and appliances?
• How old are the major appliances, and which are included with the house?
• Have there been any major repairs to the house, and if so, when were they completed? For example, how old is the roof? Has water ever damaged the basement or foundation?
• Ever had problems with insects, such as termites and spiders, or rodents?
• Older homes need to be carefully examined - Windows may need caulking or new sashes, bathroom tiles may need grouting, home may need rewiring (planning on a hot tub or sauna?), a new hot water heater, or a new furnace.

• How far will you be commuting and what is the traffic like? Factor in cost of fuel.
• Where will your children attend school and how will they commute?
• Are there recreational facilities and parks close by?
• Are you close to family and friends?
• Is safety or high crime an issue?
• Is the property close to an obstacle or negative influence? (I.e. shopping centre, school, radio tower, power lines, LRT or railroad track, highway, airport or commercial project).
• Access to schools, work, recreation, shopping centres, public transportation, cultural attractions, libraries, churches and hospitals
• Adjacent undeveloped land - what is proposed for this or other green space?
• Heavy traffic can be noise nuisance and hazard for children
• Distance from the unit to amenities, parking, walkways, roads, public transit
• Does the neighborhood reflect positively on the value of the condo and your lifestyle choice?
• Does this neighborhood, for any reason, have a poor reputation?
• Is the future economic climate for the area good? Are businesses moving in? Is there government investment?
• Are people moving in or out of the neighborhood? What is their age, income level, family size?
• Are there plans for this neighbourhood that you may be unaware of (i.e. a future highway, a commercial development or a new housing development) that will provide competition on resale?

• Proximity to highways, driveways, parking lots, playgrounds, trains.
• Proximity to elevators, garbage disposal, fire exits, heating and air conditioners.
• How well is the building soundproofed.
• Visit at different times/weekends to check noise levels and activity.