by Jason Harbour 
You’ve just taken a major step toward a huge economic investment, one that will ensure your future is secure. You’re buying a house in Nova Scotia, and you’re a first-time homebuyer. Congrats!
While buying a house is an exciting adventure, you’ve probably realized that there is a lot of behind-the-scenes work and financial preparation that goes into the home buying process, which can be a bit stressful, especially if you’re new to the Halifax realty scene and a first-time homebuyer.
As a homeowner, and Halifax based REALTOR® I’m here to say – don’t panic.
How is the real estate market in Halifax?
The Nova Scotia real estate market is saturated, and extremely competitive at the moment but that doesn’t mean you won’t find your maritime dream home.
In fact, the majority of first-time home buyers worry so much over finding the right house, that when their dream home is finally in reach; they become overwhelmed by official procedure, and freeze up like a deer in headlights. This is not their fault. It’s the job of the REALTOR® to ensure you’re ready to make a proper bid.
One of the keys to my success as a Halifax REALTOR® is ensuring my clients are not blindsided by all the additional paperwork, details, or finances required when buying a home.
Strangely enough, finding your dream home isn’t the issue – but missing out on the opportunity due to not being fully informed and prepared to make that leap is.
So, take a deep breath. You are going to find your forever home – probably after seeing more than a few never-homes!
Now, before diving in, it’s important that you know the hard facts about the Nova Scotian real estate market. So, let’s look at the questions first-time homebuyers should be asking their REALTOR®.
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What qualifies a first-time buyer in Nova Scotia?
You’re considered a first-time buyer if you’ve never owned a property before. The good news is that there are some advantages to this. – like being able to use up to $35,000 of your RRSP savings ($70,000 for a couple) to help finance your down payment on a home without penalty.
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What is the minimum down payment on a house in Nova Scotia?
So you want to talk numbers. The minimum is 5% of the first $500,000 of the purchase price and then 10% for the portion of the purchase price above $500,000.
One thing to consider is that any down payment below 20% will require mortgage insurance (CMHC). Which is an additional cost added to your mortgage total, to be paid out monthly.
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How much tax do you pay when you buy a house in Nova Scotia?
Luckily, there is no tax on a resale property – anything that has been owned by someone else. Although when building new or buying land, you will have to pay a sales tax of 15% above and beyond your regular expenses.
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How much money do I need to put aside for inspections and closing costs?
There are always added expenses when buying a home, here are a few to note.
- Lawyer fees
- Home Inspections
- Septic and sewer inspections (if applicable)
- Title fees
- Deed transfer tax (1.5% in HRM)
On average you are advised to have an extra 2% of the total price of the home saved up for expenses.
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Can I buy a house with 0% down in Nova scotia?
Nova Scotia has an assistance program for first-time home buyers who need help with their down payment. If this is something that interests you, Housing Nova Scotia provides in-depth information on the process.
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Where do I find a house inspector?
Finding a house inspector is not something you should be worried about, in fact, your real estate agent should be the one taking care of setting up all the inspections and providing you with recommendations.
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How much does the average house cost in Nova Scotia?
The average home price in Halifax has gone up in the past few years and houses in NS currently sell for over $550,000. However, you’ll notice that prices go down the further you live from the city. Don’t panic, getting a great deal on a home is not impossible especially if you don’t mind investing in a fixer-upper and getting your hands a bit dirty by taking on Renovations!
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Do I need a real estate agent?
No, but it is highly advised that you do use a real estate agent, especially since they’re helping you with one of, if not the largest transaction you’ve ever made.
An agent will support and guide you through the process of viewing homes. They add that extra layer of security and protection when it comes to setting up inspections, making offers, reviewing paperwork, negotiating terms, getting the most for your money.
In today’s market, most of the homes are listed on the MLS and are represented by the seller’s agent. Having a buyer agent on your side helps you navigate and streamline the process of securing your offer.
Also, it comes at no cost to the buyer. All REALTOR® fees are paid by the sellers.
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What can I do to better prepare and save up for a house?
Being prepared for purchasing a home is one of the most important steps in the buying process.
Saving up money isn’t the easiest thing to do, and money management isn’t really at the top of the curriculum in school. It’s incredibly important to have a minimum of 5% as a down payment, and don’t forget those pesky closing fees, so that’s another 2% – the total is 7%.
Here is an example of what you would need to save up for a $350,000 house.
$350,000 x.05% = $17,500
$350,000 x.02% = $7,000
Total needed is $24,500
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Here’s what you need to do before buying a house
After you have the down payment saved up it’s important that you speak with a mortgage specialist about your financing options.
A mortgage specialist will go through all your daily expenses and income to come up with a debt-to-income ratio. This ratio helps determine how much the bank is willing to lend you.
The next step would be to review your credit score and file to ensure everything is up to date. The banks love to scrutinize numbers and will look at that closely. It’s advised that you have a credit score of 650+ before considering purchasing a property.
Once the lender reviews all your information they will issue you a pre-approval letter with the amount and interest rate you were qualified for. The offer is usually valid from 90 – 120 days after being issued, depending on the lender.
The last step is the fun part – As a first-time homebuyer, you need to know that it’s important to work with a trusted partner who not only understands the intricacies of the Halifax real estate market, but respects your budget, and actively supports you on your home buying journey.
That being said, let’s get you started on finding you your brand-new home!
It’s okay to feel unsure about the buying process – I’m here to provide you with information and additional Halifax real estate market insights, so you can feel confident in your first-time investment.
Contact me through the link below to set up a free consultation session.
