(NC)—Almost two-thirds of young Canadians (63 per
cent) are looking to purchase their first home within the next two
years, according to a recent RBC Home Ownership Poll. But these
18-34-year-olds have significant concerns about making the leap. Almost
half of respondents (49 per cent) in this age group cited affordability
as a reason they had not yet purchased a home, while one-third (34 per
cent) said they were saving money for a large down payment.
“Buying your first home is a major milestone and you
want to ensure you are both financially and emotionally prepared,” says
Michael Schmidt, manager of client segment strategies. “There are no
'do-overs' when buying your first house, so it's important to arm
yourself with the right advice to avoid unexpected costs down the road.”
First-time buyers could also benefit from the wisdom
of current owners. Three-in-five Canadian homeowners admit they made at
least one mistake when they bought a house, including underestimating or
overlooking significant renovations that the property needed, not
having a bigger down payment, and lack of a home inspection.
Schmidt provides the following tips to combat some of common home buying mistakes:
• Put saving on autopilot: Down
payment saving takes discipline. So when you get your paycheque, pay
yourself first. One of the easiest ways to commit to this plan is to
arrange for pre-authorized transfers from your bank account to your
savings account.
• Understand the total cost of owning a home:
Purchasing a house is more than just a regular mortgage payment. Budget
for both one-time expenses (such as land transfer tax, property
surveys, and legal fees) and ongoing costs (property tax, utilities,
condo fees) and balance those costs against your lifestyle.
• Create a rainy day fund: Major
repairs and upgrades are inevitable. Keeping a separate emergency fund
will ease unexpected costs such as a leaky roof or a furnace repair.
More information is available online at /www.rbcroyalbank.com/mortgages/first-time-home-buyers.
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