If you’re in the market for your first home, here are a few things you should know: The minimum down payment is not the maximum you should have. The most common question I get from first time homebuyers is “how much should I save for the down payment?” While the bank requires 5% of the purchase price, there are other costs you must pay for out of pocket. Expenses such as legal fees and the land transfer tax are unavoidable in Manitoba, so expect to add another 2-3% to cover additional costs of home ownership. Also, being “pre-approved” is not the same as being “approved.” When a lender tells you that you’re pre-approved for a certain dollar amount, they are giving you a limit to shop for based on your income, credit history, and lifestyle. Actual approval only comes when they’ve seen the property you intend to purchase. If you follow these guidelines, your first home buying experience will be much less stressful and much more financially sound.

Tom Johnson
www.cascadefinancialgroup.com