Toba’s journey toward buying his first home

Jen and Kelly's 7 tips for first-time homebuyers like Toba

1. Think about the past, present and future of your financial situation  
   When considering a major purchase like a new home, it's important to think about your situation holistically and get a handle on your full financial picture.
   For example, while Toba had a down payment already saved (present), he had overlooked his credit score (past). As for the future, if you're looking for a new home, be sure to set money aside for more than just mortgage payments. Property taxes, condo fees, insurance, internet and utilities, and repairs or replacements may cause your bills to creep up.
2. If you have credit dings in your past, dig into why
   Something we recommend to all our clients is getting your credit in order . The lower your score, the longer it will take to rebound — but with the right habits, you can build it back up. You can check your credit score for free on the CIBC Mobile Banking App.
3. Don't make big financial moves while house hunting 
   When you're looking for a new home, put anything that may impact your credit score on hold — including other big purchases. We advised Toba to keep any charges to his credit card below 70% of his card limit.
4. Having cash on hand is more important than servicing debt 
   Toba had a truck loan he wanted to pay down. But knowing he would need to show a good chunk of savings on hand, we advised him not to put more than necessary toward the loan during the home-buying process.
   While having no debt at all is ideal, it's more important to show that you have the necessary cash savings to deal with unexpected events after closing.
5. Visualize your goals 
   Toba persevered in buying a home because he not only set concrete savings objectives, but also thought of homeownership as fulfilling a family dream. Help achieve your own goals by associating something real with those aims. Sometimes, a photo of your "dream home" stuck to your refrigerator is enough to remind you of what you're working to achieve.
6. Have an open and honest dialogue with your advisors
   Talking about finances — and past missteps — isn't always fun. But it's important to be really open with your advisors. When you're honest with us, we can help put you in the best possible position to get your mortgage approved, just like we did for Toba.
7. Take advantage of first-time home buyers' programs 
   Canada's first-time home buyers' program lets prospective homeowners take $60,000 out of their RRSP for home-related costs. There's also the First-Time Home Buyer Tax Credit, which lets you claim a $5,000 tax credit and get a rebate of $750.
   Just like Toba said, there's always light at the end of the tunnel — and with the right financial plan, you can realize your homeownership dreams too.