Owning a home is a big step. A house is one of the most expensive things we can buy.

Manitoba has more affordable housing than many big Canadian cities. The average price of a house in Manitoba is $382,658 (April, 2024). This is much lower than the prices in BC and Ontario. In BC, the average price is $1,008,497. In Ontario, it is $900,161. This information comes from the Canadian Real Estate Association.

Before you buy a house, think about these five things:

1. Down payment and period of stay

   Did you know that how much you pay changes based on how long you have stayed in Canada? If you have lived here for up to three months, you might need to pay up to 35% for a down payment. If you want to pay less for a down payment, you must have stayed here for six months to more than a year.

2. Other costs

   Besides the first payment and the loan, you will have to pay for closing costs. These include lawyer’s fees and land transfer tax. In Manitoba, the land transfer tax is calculated up to 2% of the house’s purchase price.

   Have you thought about monthly housing costs? You will have to pay for utilities, property tax, home insurance, and loan. Experts say that housing costs should not be more than 30% of your total household income per month. If you include other monthly expenses, you may need to work with a smaller budget.

   Another thing is the cost of maintenance. These include small repairs, like fixing the roof or a broken furnace, for example. It is recommended that homeowners save 1-2% of their income each year for house maintenance.

3. What’s your lifestyle?

   Do you enjoy cutting grass or gardening? Are you good at fixing things in your home? When you own a house, you need to take care of it. This includes maintenance and fixing things that break. There are also rules you need to follow for a home.

   Owning a house can change your life and your family’s life. You might need to spend more money on your mortgage and monthly bills. This means you may have less money for eating out, vacations, or shopping.

4. Mortgage pre-qualification and pre-approval

   Before looking for a house, try to get pre-qualified and pre-approved for a mortgage. Pre-qualification helps you know how much money you can borrow to buy a house. A lender like a bank or credit union does this. When you are pre-approved, the lender promises to give you a loan. Sellers and real estate agents will trust you more if you have a pre-approved mortgage. It shows that your money situation is good. It can even help you get better rates.

5. Don’t skip the house inspection

   To make sure the house you want to buy is strong and good, ask for a house inspection. Get a professional inspector (or ask New Journey Housing for volunteer home inspections). This can save you money on fixing things later. It also helps you feel sure that you are paying the right price for the house.

 
Article updated May 23, 2024.