TD Bank Lists 5 Tips For Women Homebuyers

 

TD Bank’s Top Five Tips For Women Getting a Mortgage

 

TD Bank came out with an article today talking about things women should know when getting mortgage financing in Canada. I’m not really sure what makes these tips women specific. I would think they would apply to home buyers of all genders. It seems TD’s PR department was hard at work wondering how they could create interest in an otherwise non-interesting article. However they did also conduct a survey to get women’s thoughts on the mortgage process

That being said the mortgage tips they have discussed are relevant and it probably doesn’t hurt to remind men and women of some of the basics…..so here we go….

 

Five Things To Remember When Buying a House and Getting a Mortgage

 

1. Research your mortgage options – I happen to agree with this one. Twenty-Five percent of the women surveyed said they wished they had spent more time researching their options.  It is surprising how many people will spend 2 weeks shopping for the best cell phone package, but when it comes to financing the most expensive purchase of their life they are content with just walking into a local bank branch and trusting the person behind the desk will provide them with the absolute lowest rate and best product for their needs. Very rarely will that happen. Your mortgage provider should be taking the time to determine your financial goals, risk tolerance and future plans and not just sticking you in a five year fixed mortgage because it is the most common. It is also your duty to educate yourself on the options available. A mortgage broker is a great option because they have access to products from several lenders and should be able to educate you on the pros and cons of each.
2. Consider a larger downpayment – This one is easier said then done and with today’s society’s comfort level with debt, is probably not front of mind for many. That being said, the larger the downpayment you can afford the less your mortgage will be and the less you will end up paying in interest over time…..common sense right? Only 10% of the women interviewed by TD said they wished they had a larger downpayment. It is possible today to purchase a house with only five percent down and for many this is the only option when purchasing their first home. However, if you do have the means to put more down I definitely recommend you do it. Ideally 10% or more would be great and if you can manage to scrape together 20%, you will save thousands by not having to pay the CMHC premium.
3. Don’t forget the closing costs – Thirty-six percent of the women surveyed stated they wished they asked more questions regarding the closing costs associated with purchasing a house. Most people spend all their time thinking about the money they need to set aside for a down payment, but forget to factor in the money needed for closing costs. What is included in closing costs? Well, it is everything from your lawyer’s fees, land transfer taxes, tax on the CMHC premium plus any adjustments that need to be made to the seller for property taxes already paid..etc. Most lenders will require you to prove you have atleast 1.5% of the purchase price set aside to cover these costs, but they could actually be a bit more then that. Make sure you talk to your lawyer and mortgage provider about their estimate of what the closing costs will be.
4. The expenses continue after the home is yours – Owning a home is a great experience, but the expenses can pile up. Thirty percent of women surveyed wished they would have thought more about the annual operating costs of the home. Keep in mind, heat, water, electricity, property tax, water/sewage tax and a myriad of other expenses will occur yearly as long as you own your home. If you are a condo owner you need to consider the condo fees when it comes to your monthly budget. Also keep in mind there will be a certain amount of annual maintenance that will need to be done around the house so it is a good idea to have a small reserve fund to cover unplanned expenses. Talk to your mortgage provider about creating a budget for you, or CLICK HERE to download a budget worksheet.
5. Get a home inspection – I think home inspections are very valuable when buying a house, but I think TD might be a little off in their interpretation of the survey results. Forty-three percent of women felt their biggest headache in home ownership is the maintenance and upkeep of the home. TD suggests a home inspection might be a remedy for this. I agree the inspection is necessary, but I have found through experience that most home inspections really only pick up surface issues with the property that most people could have spotted on their own. Plumbing and electrical issues that are buried in the walls will usually not be mentioned in the report and these tend to be some of the more expensive problems a home owner could have. That being said I would always recommend getting a home inspection before buying any property

There you have it. Five easy tips for home buyers. CLICK HERE to check out the original article and I would love to hear from you on your take. Do you have any interesting stories on your experience that would support or challenge the results of the survey? If so I would like to hear from you. Please feel free to comment below.

 

Related articles by Zemanta

• Tips on Getting Your First Time Home Mortgage (pocketsmith.com)
• How Much to Save Before Buying Your First House (pocketsmith.com)
• What are closing costs? (zillow.com)

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

2 Comments for this entry

• 

  Monisa

  April 30th, 2010 on 7:49 pm

  Hi Brad, great article. Wish I had read it a couple of weeks ago but good to know I haven’t missed anything. Thanks for helping me do everything right
• 

  admin

  April 30th, 2010 on 8:01 pm

  Hello Monisa,
  Glad to see someone reads my posts and I’m glad you liked the article.