Brandon McGee (506) 755-0916 Buy with Knowledge. Sell with Confidence.
Brandon McGee
St. Stephen, St. Andrews, St. George, Fundy Isles, NB
Phone: (506) 755-0916 Fax: 5064665429
Email Brandon

"To leave satisfied you must arrive prepared."

Congratulations!  You have decided to purchase a home, or are thinking about buying one.  You'll be joining the ranks of hundreds of families who realize that home ownership offers a number of benefits including building equity, saving for the future, and creating an environment for your family.  When you own your own home, your hard-earned dollars contribute to your mortgage. The equity you earn is yours.  Over time, your home will increase in value.

In the following reports, you'll find the information you need to make a wise buying decision.  We'll take you through the planning process step-by-step , to help you determine which home is right for you.  You'll find a host of informative articles on mortgages, viewing homes, the offer, closing details and moving.

Please contact me if you have any questions about buying a home in Charlotte County New Brunswick.

    

Buying a home is one of the biggest emotional and financial decisions you'll ever make, so prepare yourself to make a knowledgeable decision.

Building Your Team 
Take the stress out of buying your home by surrounding yourself with a team of experienced home-buying experts.

Having your own Realtor ensures that you have someone on your team looking out for your best interests. Keep these tips in mind when choosing your Realtor -

-Ask friends and relatives for referrals
-Be sure that you feel comfortable with the individual you choose -- you may be spending a lot of time together 
-Look for someone with experience locating homes in your desired neighbourhood and price range 
-Make sure your Realtor has a good understanding of your needs before you start house hunting

Buying a home is an exciting and important life event. It also means that you will have many decisions to make - and just as many questions that need answering. To help simplify this process, As your Realtor I will have a wealth of information just for you. No matter what stage in the home buying process you're at, I will provide you with all the information you'll need along the way.

As your Buyer Agent I have experienced with many home buyers programs, available down payment gift or grants, cash back mortgage details and tips and information on home loans.


Home Buyer Reports

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Be sure not to pay too much for your home!
Whether you are buying your first home, or your fifth, the process of buying a home is a detailed, time-consuming venture...
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Ensure A Smooth Home Purchase
Buying a home can be an emotional, time-consuming, and complex process...
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Avoid the Most Common Buying Errors
Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details...
Read More 

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Things To Keep In Mind When Buying Your First Home
Many renters are starting to think about purchasing a home of their own. Several factors should be considered when purchasing a home...
Read More 


Renting vs. Home Ownership




This is a decision which many people face, and the decision is not as easy to make as it may sound. 
As a homeowner, you can reasonably expect the equity in your home to increase over time as your mortgage is paid down. That, combined with regular appreciation in property values, can be a rapid and rewarding way to increase your net worth. In contrast, the person renting over the same amount of time is left with no property investment but may have enjoyed lower living expenses and the opportunity to invest in other opportunities. 
When comparing owning to renting, you have to add up all of the figures, including the cost of your home, the size of your down payment, utilities, immediate repairs, interest rates and insurance, and compare them with how much you are currently spending on rent. 
Of course, you also have to place a value on the enjoyment and satisfaction that you will derive from owning your own home. 

  

 


The Home Buying Decision


  

Although buying a home almost always seems like a great idea, it is important to understand what homeownership involves. Of course, being a homeowner is something to be proud of but it also means having to invest money, time and energy and take on added responsibilities. So, before you decide to buy a home, make sure you're ready.

Here are some things to consider:

-Financial Security. If housing prices rise, your home can provide you with some financial security due to capital appreciation.
-Stability. Having a place of your own.
-Financial Stress. Coming up with the down payment, meeting regular mortgage payments and other ongoing costs will tie up a lot of your cash, and can put considerable stress on your finances.
-Maintance. Keeping your home in good shape requires time and money.
-Responsibility. You alone are responsible for payments, repairs and maintenance.
-Flexibility. You can decorate or renovate your home to meet your own family's personal tastes and needs.

There are pros and cons to home ownership, and when you weigh them carefully you'll likely come to your own conclusion about whether it's right for you. 

Start by asking yourself a couple of basic questions. 


What type of home makes sense for me? 
When it comes to buying a home, there's a wide range of choices that have as much to do with your personal preferences as they do finances. 
Do you want a home that's ready to move into or a fixer-upper? If you have the time and inclination to renovate, your home will certainly reflect your personal style, but it takes a considerable amount of planning and patience to see it through. As you can see, the choice to own your own home is not only a financial decision but a lifestyle choice too. If you've decided to buy, there's a lot to consider. As your Realtor I will help guide you, and  help you in the decicition on what's important to you as you compare homes. 

 


What can I afford? 
Home ownership should fit into your lifestyle, but it should not become your lifestyle. Many buyers take on more debt than they can manage and quickly find themselves "house-poor" - meaning they have nothing left over at the end of the month. Pre-approval is the first step to home sweet home, to figure out a purchase price you can handle.


How much house is affordable? 
Ideally,  home buyers should create a budget and calculate their debt service ratios. However, here is a rule of thumb that some choose to follow: 
It works like this: Start with the household's gross annual income (salaries, wages, and taxable income before taxes). Multiply by 3.4. Example: people with an annual household income of $60,000 can reasonably afford a $204,000 home. 

Home Price Guide

 

On a family income of:

Can afford a house of:

And the 5% down payment would be:

$50,000

$170,000

$8,500

$60,000

$204,000

$10,200

$70,000

$238,000

$11,900

$80,000

$272,000

$13,600

$90,000

$306,000

$15,300

$100,000

$340,000

$17,000

 

Leave yourself money for other expenses 
Home buyers be prepared: Some people are surprised when they discover that the purchase price and mortgage payments are not the only costs associated with owning a home. 
A financial buffer should be kept in case of cash emergencies, home repairs or other unexpected events. Monthly take-home pay should also comfortably cover living expenses such as food, clothing, insurance, gas, car repairs, entertainment, vacations and other debts. 
Everything seems to cost more than expected, from paint, wallpaper and curtains to general upkeep and property taxes. Be sure to ask me, or your  Mortgage Specialist to help you estimate some of these additional costs for houses in your preferred area. 

Total Debt Service ratio (TDS) 
The TDS ratio measures your total debt obligations (including housing costs, loans, car payments, and credit card bills). Generally speaking, your TDS ratio should be no more than 40% of your gross monthly income. 
Keep in mind that these numbers are prescribed maximums and that you should strive for lower ratios for a more affordable lifestyle. 

Again, before falling in love with a potential new home, you want to obtain a pre-approved mortgage. This will help you stay within your price range and spend your time looking at homes you can reasonably afford.

The pre-approval meeting is the time to find out about different mortgage products that are available to suit your particular needs. First-time buyers may want to ask about special programs such as the CMHC 5% down payment option and the federal government's "RSP Home Buyers' Plan". 
A pre-approval meeting can also be treated as a fact-finding mission to go over closing costs. For example: land transfer tax, legal fees and other disbursements. A good rule of thumb is to budget about 2% of the purchase price for closing costs. Once the mortgage is pre-approved, many bank or mortgage specialist commit to the interest rate for 30 - 120 days. You can shop with confidence, knowing how much you can spend for the home of your choice. And there's no obligation. If you don't find a home you like in that time frames, you can renew your pre-approval at the interest rate in effect at that time.


Closing Costs
 
Closing costs are the legal and administrative fees and disbursements associated with buying your home. Understanding each one will help you budget more accurately and lead to a more comfortable home-buying experience. 

-CMHC or Genworth Financial Canada insurance 
-Land transfer taxes
-Legal fees
-F
ire insurance 

CMHC or Genworth Financial Canada insurance 
A conventional mortgage is a loan for no more than 80% of the appraised value or purchase price of the property, whichever is less. The remaining amount required for a purchase (20%) comes from your resources and is referred to as the down payment. If you have to borrow more than 80% of the money you need, you'll be applying for what is called a high-ratio mortgage. 
Here's how it works: 
You must have at least a 5% down payment when you buy a home. Any purchase where the down payment is between 5% and 19% is considered a high-ratio mortgage, and the mortgage must be insured by the Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada. The insurer will charge a fee for this insurance. The amount of the fee will depend on the amount you are borrowing and the percentage of your own down payment. Typical fees range from 1.00% to 3.25% of the principal amount of your mortgage. This amount can be paid up front or added to the principal portion of your mortgage. Your bank or mortgage specialist can help you determine the exact amount. 
 
Land Transfer Taxes 
The Province of New Brunswick has a parcel-based land registration system that identifies and records interests in real property. Once a parcel is converted to the new Land Titles system, the Province of New Brunswick guarantees the title of each parcel of land by issuing a Certificate of Registered Ownership (CRO). Each time a new transaction on the parcel is registered, the title register is updated and a new certificate is issued. If the property is not already in Land Titles then the buyer must register the property into the system. This cost to the buyer is approximately $300-$350. 


 What should I know about land Titles?

Fire insurance 
You are required by the mortgage lender to have fire insurance effective at the time you legally take possession of your new home. Some insurance companies may demand proof of a home inspection or may not insure certain types of dwellings. Make sure that you enlist your insurance agent early.