Lower housing prices, an affordable cost of living, and short commutes to school and work are just some of the reasons why people love living in New Brunswick. As you start your search for a place to call your own, there are several things to think about and prepare so the place you choose fits your needs.
When you’re searching for a home to buy or rent, you’ll want to think about location. Ask yourself how much space you’ll need, how you’ll get to work, how your kids will get to school, what services and amenities are nearby, and what type of neighbourhood you want to live in. You’ll also want to consider the cost of living in a neighbourhood as housing prices can vary greatly from city to city and even neighbourhood to neighbourhood. You will also want to consider if you want to live in a city or in the country.
If you decide to rent an apartment or house, you’ll need money to pay your monthly rent, plus the additional costs of utilities (your heat, electricity, water, telephone, cable for television, and internet). You may also have to pay for a parking space. And you’ll need to pay a security deposit, which will be returned to you when you move out, if there is no significant damage to your rental unit at that time.
When you rent a home, you are protected by a contract between you and your landlord called a tenancy agreement or lease. This should be a written agreement that outlines the costs, length of commitment, and rules of renting.
If you have any questions or if you feel you are being treated unfairly, contact your local Residential Tenancies Tribunal:
Toll-free: 1-888-762-8600
Website: www.snb.ca/irent
Renting is a smart first step when arriving in New Brunswick because it doesn’t take as long to move in and get settled compared to buying a home.
When you’re ready to buy a home, you’ll need to start looking at homes for sale. You can find homes for sale online, and/or use a real estate agent. (Agents are listed in your telephone directory and run ads in local newspapers.) Your bank or financial institution will also offer guidance throughout the buying process.
Before you look for a house, you should visit your bank. Banks that provide mortgages can give you a letter of pre-approval. This means that they’re willing to lend you a specific amount of money at a specific rate of interest.
The bank looks at your income, debts, and credit to figure out what you can afford. The bank then offers to pre-approve a mortgage. Pre-approvals only last for a certain amount of time, usually three to four months.
Banks will look at all your monthly payments to calculate how much they’re willing to loan you to buy your home. These are some of the guidelines bank staff use to make their decision:
These are general rules that most banks follow, but some will make exceptions.
A down payment is the money you pay when you buy your home. You must make a down payment of at least 5% of the total cost of your home. If you have no history of credit, the bank will require a 40% down payment. Most down payments are between 5% to 50% of the price of your home. You may negotiate this amount with your bank. If your down payment is lower than 20%, you’ll have to pay a premium one-time insurance fee to Canadian Mortgage and Housing Corporation (CMHC), so the bank is protected. It’s mandatory and the less your down payment, the higher the mortgage payment.
The amount of your down payment also determines the amount of mortgage insurance you need to pay. You pay mortgage insurance to protect the bank in case you don’t pay back your mortgage. The cost of your mortgage insurance is included in your mortgage payments. The bank then pays the insurance for you.
House prices vary widely and are negotiable. If you don’t pay the full purchase price for your home, you’ll need a mortgage from a local financial institution. Other costs you’ll need to calculate are:
Homeowners pay property tax based on the value of their home and land. Every year, usually on the first working day of March, a notice is mailed to you. It includes the current value of your property, the property tax rate, and your total tax bill. If you don’t pay your property taxes when due, you’ll be charged extra. The due date will be on your notice. For more information on property tax and property tax assessments, contact Service New Brunswick:
Toll-free: 1-888-762-8600
Website: Service New Brunswick
Once you’ve found a house you want, you need to make an offer to purchase it from the current owners. When making an offer keep in mind:
There are other costs when you buy a house. They may include a land transfer tax, a title search, HST on new homes and land, and lawyers’ fees. You’ll also need a lawyer to complete the sale and transfer the property to your name.
As a homeowner, you have greater freedom to do what you want with your property, but there are still rules that you need to follow:
Some communities have recycling programs. Some recycling programs are voluntary. Some, such as Moncton’s, are mandatory. You must place wet and dry garbage in different coloured bags. Contact your local city or town hall to find out about recycling in your community.
For more information, here is a page designed just for newcomers that has information about buying a house in several languages: Housing for Newcomers to Canada | CMHC (cmhc-schl.gc.ca)
If you’re buying a house, you’ll need to buy home insurance to get a mortgage. This insurance will help you pay for repairs if there is damage to your home and help you replace things that might get stolen. If you’re renting a house or apartment, it’s wise to have renter’s insurance even though it is not required by law.
To have your electricity connected, telephone the province’s power utility, NB Power, toll-free at 1-800-663-6272. To set up your telephone, internet, and cable television service, contact either Rogers, toll-free at 1-888-764-3771, or Bell Aliant, toll-free at 1-866-425-4268. Remember, you must pay a connection fee when these services start.
Don’t forget to notify friends, family, employers, and anyone who sends you mail about your change of address. For a fee, Canada Post will forward your mail from your old address: https://www.canadapost-postescanada.ca.
Let us know your questions and we’ll get back to you with answers.