Down Payment

How much will I initially need to purchase my new home?

You will need enough funds to cover your down payment and closing costs, as well as the remaining balance on the cost of the home. This can be sourced through financing or other means.

A larger down payment means greater savings

The money you pay up-front for a house is the down payment. Down payments are typically a percentage of the purchase price of the home. The source of money for your down payment is often either your savings or the net proceeds from the sale of a home you already own.

The larger your down payment, the more you save in the long run. A larger down payment:

- Reduces the amount of your monthly principal and interest payment
- Reduces the total amount of interest you pay over the life of your mortgage

Your Mortgage Specialist can help you compare mortgages, determine which mortgage is right for you, and show you money-saving strategies.

Closing Costs

Closing costs are the legal and administrative fees and disbursements associated with buying your home. These costs are in addition to the purchase price of the home. They can vary widely depending on:

- The property being purchased
- Services required
- Taxes
- Applicable insurances
- Closing dates affecting interest adjustments
- The balances of any prepaid expenses

Think back to high school economics. Remember those lessons on the laws of supply and demand, and how you swore you’d never need to know that stuff in the real world? Well, if you’re looking to buy a house, it could come in handy.

The concept is a simple one, but it teaches a valuable lesson in how housing market conditions affect price, and how understanding the market can affect your buying strategy.

In a nutshell, when there are more homes for sale than there are potential buyers, house prices drop. When there are fewer houses on the market than there are buyers, house prices will climb. When the number of homes on the market is roughly equal to the number of buyers, it’s called a balanced market.

Market conditions can vary widely across the nation, across provinces and even across neighbourhoods. The demand for housing in a given locale may be influenced by any number of factors. Swings in the economy (both national and local), the availability of property (supply), and the fickle nature of consumer trends can determine if a given neighbourhood is hot or not.

As an expert on your local real estate market, a Royal LePage agent is an excellent place to start understanding the state of your local market. You may also want to consult the Royal LePage Survey of Canadian House Prices. This is a quarterly report geared to help you learn more about housing price trends in your area as well as housing markets across the country.

Here is a quick rundown on how the changing housing market can impact buying and selling behaviours: 

Closing the Purchase

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(306) 694-8082

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605A Main Street N
Moose Jaw, SK
S6H 0W6

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