1. Get Rebates and Tax Credits
There are only a few ways that your home will give you cash before you sell it, and one of those instances happens right away in the form of GST rebates. You can apply for these after the purchase has gone through, but there are a couple of stipulations. First, the home has to be new or substantially renovated. Next, it needs to purchased for less than $450,000, which is actually fairly easy in Edmonton’s current market.
The First Time Home Buyer’s Tax Credit is an absolute must as well and can land you up to $5,000. This money can go a long way in helping you pay off the closing costs and hidden fees of buying a home, including legal fees, disbursements and land transfer taxes.
2. Get a Nest Egg or Two
When you buy a home, you’ll likely drain much of your financial resources. Once you’ve purchased that home, however, it’s time to think about rebuilding your various nest eggs. Start with an emergency fund to help you if something happens, like you lose your job or have a medical emergency. Once you have a few thousand put away for that, look to your RRSP and other funds that you may have depleted to buy your home.
3. Get Insured
Now that you own a home, it’s time to update any and all of your insurance, including disability insurance, life insurance, and some layoff insurance. Be sure to renew and review all of your existing insurance to ensure everything is covered and your new situation is taken into account in your policies.
4. Get a Will
If you just bought a home, you’ll need to put that in a will for someone. Without the proper will, your home could end up getting passed on to the government. A strong will can dictate who manages your affairs and estate after you’re gone, and other important things like who will look after any children you may have.
Once you buy your first home, your new life has begun. You’ve entered a new phase of your life and with it comes some extra changes. Be sure to review your insurances after you’ve purchased a new home, and get your will in writing by an official legal professional. Without these things, you could be in trouble down the road.