Here is a question that we get often from people thinking about buying their first home in Barrie. How much money do you need to save to buy a home?
So if you are looking to buy your first home we will take an average budget for first time home buyers in the Barrie area of $300,000. For starters you have to have a minimum of 5% for the downpayment to get a mortgage. That means to buy a home you have to start with a figure of at least $15,000 just for the downpayment.
A downpayment is not enough just to buy a home with. You still need to account for closing costs as well. This means that you have to pay legal fees, taxes, and title insurance. Not to mention if you have a home inspection you will have to pay for that as well. For the extra costs involved you should try to budget an additional 2-3% of the purchase price of the home you are buying.
So if you take the 5% downpayment and 3% to help cover the other fees you will experience you are looking to save approximately $24,000. Keep in mind that is to buy the home. You also need to look at what else you may need, such as furniture. Everyone uses different options to furnish their home.
Its also not a bad idea to keep a bit of extra money around after. Sometimes things can go wrong in a home and you will need to repair it. Its always a good idea to have a little extra money just in case you need it. Its not a great idea to spend every dime you have on your home.
So there you have it. If you want to buy your first home in Barrie in 2016 you should try save approximately $24,000 between downpayment and closing costs. Then its up to you to decide how much more after that you need to save to feel comfortable with your situation.