Working With A Real Estate Agent When Buying A Home

Buying a home for the first time can be challenging for some individuals. Doing your research can help with your desired purchase. Some things won’t work like, “I want to purchase or shortly, buy this house”, and go proceed but don’t know how to buy a home. That is why a real estate agent is there to guide you.

There are also private lenders Canada that can help you with your mortgage later.

Things you need to know when buying a home:

1. Have more than the down payment

Do you already save up a down payment? Good. However, there is more than just a down payment if you plan to buy a home. You need to pay various upfront payments, excluding the down payment—payments like your lender’s fee.

Higher down payment, lower mortgage Canada you have to repay.

How much down payment do you need?

If the purchasing home price is $500,000 or less, you must prepare a minimum 5% down payment. If it’s more than $500,000 to $999,999, you should have a 10% down payment of 5% for the first $500,000 and 10% for the rest. And for $1,000,000 and above purchasing a home, you must prepare for at least 20% of the purchase price.

2. Get pre-approval

It would help if you got pre-approval before shopping for a home. Pre-approval will show you the estimated home price that you can afford. There are many advantages to getting pre-approval. One of which is your lender will be able to lock in the interest rate for up to 120 days. In case there is an increase in interest rate, your lender should acknowledge the current rate.

3. Check for first-time home buyer incentives

The Canadian Government offers the first-time home buyer incentive (FTHBI), which can give first-time home buyers confidence to buy a home.

First-time home buyers can borrow:
  • 5% of the price of a resale home
  • 5% or 10% of newly constructed home
  • The loan is interest-free; you can repay it within 25 years or when the home is sold.
You can qualify if:
  • Must be a first-time home buyer
  • Have less than $120,000 household income
  • The mortgage is capped at four times the maximum income of $120,000.

The program lessens some financial hassle, making it accessible to buyers without equity.

4. Do a home inspection

A lot of home buyers skip the inspection process because of tight competition in the market. However, paying attention to the home inspection can only cost you later. There might have been problems that you overlooked by yourself. There can be leaks and molds in areas you don’t usually check.

A home inspection can assure you that you made the right decision. Your home is a serious investment, so you must be careful while saving money.

5. Work with a real estate agent

You can always buy your home by yourself. However, working with a real estate agent will be more helpful. They are more experienced and professional regarding house listings, especially when it is your first time buying a home.

It is essential to interview to see which real estate agent you are comfortable working with; make sure that you inform them that you are still in the process of an interview.

There is an approach that real estate does to ensure that you win the bidding. The process can be complex and riskier, missing some potential red flags.

Things to remember when working with a real estate agent:

1. Salary-based and Commission-based real estate agent

There are R.E. agents that are commission-based, which means they will do a great job explaining and doing their best to be helpful to you. Because they won’t be able to profit if they don’t close deals with their clients.

Salary-based, however, earn the same money even if they do not close the deal, so it won’t matter if they are helpful to you.

2. Always be on time

R.E. agents have precious time. You are not the client they will have to meet; they only have available to help you for a reasonable time. So be considerate when you are meeting with an agent. If it is inevitable that you will arrive late, tell them beforehand, so they will know.

3. Do not contact listing agents directly.

Listing agents work for sellers rather than buyers. Your agent will work with the listing agent instead. If you reach out directly to the listing agent, there could be conflicts and the listing agent does not want to do work that is not his description.

4. Practice open house protocol

In some areas, they let you go to the open house unescorted; ensure you get the signal with your R.E. agent. If you get an okay, show your agent’s business card to show you are represented. Just make sure to refrain from asking questions from the host. Your agent could use a different approach for a better transaction.

5. Buyer’s broker Agreement with the buying agent

An agreement will build a relationship between you and the agent/broker. This will explain their duties to you, making it easier to understand what you are signing. An agreement can assure you; ensure you know well what’s written before signing it.


Real estate agents will significantly help you only if you choose the right one. Your options can be broad if you research them. Get recommendations from friends or family that have already been in the process of home buying. They could work with you also.

Buying a home is a serious and the most significant investment an individual can have. So you don’t have to rush all the decisions you’ll be making. Think about them carefully and assess each decision you have to make.

You can connect with us at Private Mortgage Canada if you need help with your mortgage. Or directly contact us at +1 416-825-0142.

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