Are you dreaming of owning your first home in the stunning city of Niagara Falls, Canada? It's an exciting journey, but like any adventure, it comes with its own set of rules and twists. In this guide, we'll take you through the essential tips and tricks for buying your very first house in Niagara Falls. From understanding the costs involved to making a smart offer, and even what happens after you get the keys, we've got you covered. So, let's dive in and unravel the secrets of homeownership in this breathtaking region.

The Costs

First, you should learn the basics of numbers and terms for the sale of a house if you haven't yet. A 5% to 20% down payment is required at the time of purchase. If you're not able to put 20% or more down, you are looking at getting a high-ratio mortgage, which requires insurance and costs extra. To put an offer- on a house in motion, you must put a deposit down. Yes, a deposit, not a down payment, they're not quite the same thing even though they sound so similar. A deposit is essentially an amount of money you use to secure your offer and show your intent. It's put into a trust when the offer is accepted, which then goes to the seller, usually through their brokerage. It is a portion of the down payment that is usually non-refundable should the offer be accepted and all conditions met.

The process generally goes like this:

  • Mortgage financing, pre-approval with your financial institution

  • Putting in an offer with a deposit

  • Having your offer accepted by the sellers & paying your deposit

  • Mortgage approval by your financial institution

  • Closing: down payment and other closing costs with your lawyer

Saving for your down payment, pre-approval and talking to a financing expert provide a good indication of affordability for beginning the process. Saving a down payment is really viewed as the first step before you can begin because it is the largest amount of funds you need ready. But this isn't the only cost! In Niagara Falls you need to have roughly 2% of your home purchase price set aside for land transfer tax. First-time home buyers can also be eligible for a provincial land transfer tax refund for all or part of the tax. Then there is the cost of a lawyer for completing all of these steps. Your lawyer will provide the best information on closing costs (land transfer tax and refund eligibility).

Don't forget about the costs after as well; your home's taxes and any immediate purchases you need for maintenance like a lawnmower, snowblower, shovels, etc. can add up. Shop around, use online wish lists, check flyers, and get all the deals you can, it makes a difference!

Ask All of the Questions

You're going to need to ask a lot of questions. If someone says a term you're unfamiliar with, if you see a home with something that seems off to you, maybe if you'ren't understanding what's going on with the Niagara Falls housing market… never be afraid to ask. It may not even stick the first time, so don't be afraid to ask again. This also goes hand in hand with our best tip for home tours, look everywhere in the home. Check everything and ask questions as they come up.

Example: Is there a sump pump? Do you know what that is or looks like? It's okay if you don't!

Look everywhere

Flick light switches, look in crannies of closets, see any crawlspace access, etc. The more you can see, the better. Your realtor will also probably have some pro tips for you. When considering houses for sale in Niagara Falls, be sure to thoroughly assess whether the property meets your individual needs. Everyone's essential criteria can vary significantly. You can also bring an expert with you, be it a tradesperson in the family (lucky you!) or a contractor. Unless you're a trained professional, it can be hard to know what you're looking at. A home inspector will always know best, it's most likely in your best interest to make your offer with an inspection contingency. An inspection contingency is a clause that makes the offer conditional upon the home inspection results that you (the buyer) find satisfactory. You can talk to your financing, realty and legal experts more about this. Remember, if you're going without an inspection that's an added risk.

Use Apps

Apps like The Canadian Home can send you alerts when you set up searches for your price in your favourite location. You can customize your home page with the filters that you want, this will help you save time.

The Offer, Closing and Beyond

You need to understand the risks of going in with no conditions on an offer. It's a bit like you're doing a high jump, but you've just removed the safety mat. You should also think about insurance. Whether it be life or mortgage life, it's a good time to think about what would happen to the mortgage payments and household expenses if something unexpected were to happen.

As you embark on your home-buying journey, remember that it's not just about finding a place; it's about securing your future. From saving for your down payment to asking all the right questions and trusting your instincts during house tours, these tips will help you navigate the real estate landscape of Niagara Falls. The offer, closing, and what comes next can be complex, but with the right information and a bit of curiosity, you'll be well-prepared for this life-changing step. So, go ahead, explore the beauty of Niagara Falls and find your perfect home – it's a decision that will shape your life in more ways than one.