Ready to buy your first home, but not sure where to begin? With so many resources available, it’s easy to feel overwhelmed and uncertain about what’s truly helpful.
To help simplify things, Unica’s personal insurance expert, Surina Gambhir, rounded up some of the most-asked questions from first-time buyers, and answers to help you move forward with clarity and confidence, from budgeting to closing day.
What are the benefits and drawbacks of purchasing a new build versus a pre-loved home?
Let’s face it, there’s something undeniably exciting about buying a brand-new home. With their modern design, energy-efficient features, built-in smart technology, and the option to customize your layout and finishes, it’s easy to see the appeal. On top of this, everything meets current building codes and is backed by a Tarion warranty for up to seven years — even if you sell.
But that excitement comes with tradeoffs. There is a 13% HST to consider and potential construction delays that can shift your move-in date. New builds are also often in developing areas, still waiting on amenities like parks, shops, or schools. And while everything is brand new, it usually costs more per square foot — with upgrades pushing the price even higher.
Pre-owned homes, on the other hand, might not be as shiny, but they come with their own perks. They’re typically located in established neighborhoods with mature trees, nearby schools, parks, and transit already in place. They’re often more affordable up front, with no HST and more room to negotiate on price or extras. Plus, they’re move-in ready with fewer surprises on the timeline.
The catch? Older homes may come with repair costs, especially for big-ticket items like the roof, plumbing, or electrical. Energy efficiency may fall short unless updates have been made, and there’s typically no builder warranty unless the home is relatively new.
What are the bank requirements when buying a home?
A bank typically requires a mortgage pre-approval, which means you’ve shown you’re financially ready based on your income, credit history, and existing debt. From there, you’ll need to provide proof of income, and the lender may arrange a property appraisal to confirm the home’s value matches the loan. Before closing, you’ll also need to show proof of home insurance, sign a purchase agreement, and provide a down payment. It’s worth taking the time to choose a home insurance policy that not only meets your lender’s requirements but also protects you against major risks like fire, water damage, or liability. Not sure where to start? A broker can walk you through your options.
A home inspection may be requested as well to check for any hidden issues.
Should I do a home inspection when buying a home?
A home inspection is crucial when purchasing a home, as it uncovers hidden issues you might otherwise overlook. It offers a thorough assessment of the property’s condition—from the foundation and roof to plumbing and electrical systems, helping you steer clear of costly surprises later. Inspections can identify safety concerns, required repairs, or maintenance needs, allowing you to negotiate repairs or price adjustments before closing. In short, it’s a crucial step to protect your investment and make an informed decision.
What questions can I ask my realtor when buying a home?
Tap into your realtor’s knowledge when buying a new home. Ask about market trends, typical prices, and how long homes stay on the market. Find out how the property compares to others, any recent repairs, and upcoming neighborhood changes. Ask about utility costs, property taxes, and what’s included in the sale. It’s also worth checking how flexible the seller is and getting referrals for reliable inspectors or mortgage brokers. Lastly, but most importantly, talk strategy when you find a home you love to make sure your offer stands out.
Now that you know some of what to expect, you can tackle buying your first home with more confidence and ease. Knowing the process helps you make smart choices, avoid any surprises, and you’ll be one step closer to finding the home that fits you perfectly.
