February 4, 2016 1:10 pm
Updated: February 4, 2016 5:10 pm

Tips for how to save and what to watch out for when buying a house

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WINNIPEG — It can be intimidating to become a homeowner for the first time but spending guidelines can help.

Winnipeg realtor Amber van den Broek joined Global Winnipeg’s Morning News Thursday to share some tips on how to prepare for the big purchase.

“Fifty per cent [of your money] should be going to savings and 30 per cent should be going to your variable costs such as going out and entertainment,” van den Broek said.

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For buying a house you need a minimum down payment of five per cent plus your closing costs of two per cent.

“When you’re looking at your overall spending and what you can afford you need at least seven per cent cash to have as that down payment when you start looking for a house,” van den Broek said.

She also suggests getting a pre-approval done with a lending institution whether that’s a bank or a mortgage broker.

“For first time buyers there’s also a great program that you can use your RRSP’s as a down payment… it’s up to $25,000,” van den Broek said. “If you haven’t owned a home in five years you can also use that program.”

Van den Broek noted housing prices went up two per cent last year and are expected to go up by the same amount this year, so keep that in mind if you’re on a budget.

“If you want to be in a certain location don’t compromise on structure… do your home inspections they can save you money in the end and get advice from your realtor in the science of bidding,” she said.

© 2016 Shaw Media

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