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Seven Money-Saving Tips For Home Buying

First Posted: May 3, 2008

By Bruce Whitaker, President of BuyingBlock.com

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Bruce Whitaker has experience in personal, corporate and international banking with TD, corporate finance and performance improvement consulting with Cap Gemini, Ernst & Young and as an executive with a technology start-up. Bruce is currently the Co-founder and President of Buyingblock.com, an online and retail one stop shop for home buyers.

Save on your new home from the start!

Here’s how to save money on your new home purchase:

1. Engage a Mortgage Broker. A broker shops for you across more than 30 banks getting the banks to compete for your business. You pay the broker nothing but the winning bank does.

2. Shop around for a Lawyer and ensure you get a full cost quote. Don’t fall prey to "the additional costs are government fees." With the advent of title insurance, choice of lawyer is not as important as it once was. Pass on a quote of more than $1,400 including GST.

3. Join the Inspector during the tour of your potential home. Once you have the list of deficiencies, get a cost quote from a contractor. Next, simply reduce the asking price by all of the deficiencies.

4. Reduce the Mortgage Interest you pay. Split your monthly mortgage payments in two. You are essentially accelerating your payment by two weeks.

5. Decline mortgage insurance and simply increase your Term Life Insurance policy. The premiums are roughly the same but the payout is much smaller under mortgage insurance.

6. Consider your Basement as a revenue producer. A basement suite can generate between $650 and $900 in monthly income. Remember to buy close to public transportation.

7. Get three quotes for moving, renovations, legal and insurance. Ensure that when you are asking for a quote that the provider is aware that it is a competitive situation.

Hopefully this article has made you just a bit sharper when approaching the home purchase. Stay tuned for part two!

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