Looking for Collingwood Condos for Sale? Here Are Tips for First-Time Buyers!

If you’re looking into Collingwood condos for sale, it’s a great time to buy, particularly for first-time buyers. Buying a condo can be a daunting prospect.  So, we have some tips to help buyers make the most of these real estate opportunities.

Three Tips to Remember When Researching Collingwood Condos for Sale

  1. Know your purchasing limits

Buying a new condo is expensive, but how much can you really afford?  First-time buyers often worry about how to decide on their price ceiling, when talking about a purchase they’ll be paying off for 20-30 years.  While it’s impossible to fully predict the future, there is an easy rule of thumb for deciding on your price limit: “The 28% rule.” Simply put, your monthly mortgage payments should be no more than 28% of your current gross monthly income.

If your monthly payments will be more than that, you’ll be taking a huge risk – and many banks may not be willing to fund such a mortgage either.  Remember that in addition to your mortgage payments you will be responsible for taxes, utilities and with a condo a monthly condominium fee.

  1. Know your mortgage options

There are many different types of mortgage arrangements, with different interest rates and lengths of the repayment.  The traditional 30-year mortgage remains the most popular option, as you’ll be paying relatively low-interest rates on such a long-term loan.

On the other hand, if you’re buying an expensive piece of property – or have reason to think you’ll have a significant boost to your income in years ahead – you might opt for an Adjustable Rate Mortgage (ARM).  An ARM usually begins with low-interest rates at first, which grow after several years. This puts higher-value properties within reach of more buyers.

  1. Remember to factor in your new tax burden!

Another major misstep we often see from first-time buyers is that they fail to consider how home ownership will affect their taxes.  In many cases, it will increase their tax burden. We strongly recommend buyers consult with an accountant as part of their purchasing process, so they’ll understand the impact this will have on their future finances.

I’m here to help!

If you’re interested in Collingwood condos for sale, licensed real estate Broker Keith Hull wants to make it happen.  Contact us with your questions.

    Email Keith