We Want To Help You Buy Your First Home!
It's a dream we all have – to own our own home and stop paying rent. But if you are like most renters, you feel trapped within the walls of a house or apartment that doesn't feel like yours.
Don't Feel Trapped Anymore!
It doesn't matter how long you've been renting, or how insurmountable your financial situation may seem, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you can:
- Save for a down payment
- Stop lining your landlord's pocket, and
- Stop wasting thousands of dollars on rent.
"If you are like most renters, you feel trapped within the walls of a house or apartment that doesn't feel like yours."
6 Little Known Facts That Can Help You Buy Your First Home
The problem that most renters face isn't your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent. But saving for this lump sum doesn't have to be as difficult as you might think. Consider the following 6 important points:
1. You can buy a home with much less down than you think!
There are some local or federal government programs (such as 1st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered.
2. You may be able to get your lender to help you with your down payment and closing costs.
Even if you do not have enough cash for a down payment, if you are debt-free, and own an asset free and clear (such as a car for example), your lending institution may be able to lend you the down payment for your home by securing it against this asset.
3. You may be able to use RRSP Investments to buy a home.
Under the Home Buyer's Plan a first time home buyer may withdraw a maximum of $20,000 from their RRSP to purchase a qualifying housing unit located in Canada. This includes existing homes and those being constructed – single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, duplexes, triplexes, fourplexes, or apartment buildings.
4. You may be able to create a cash down payment without actually going into debt.
By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.
5. You can buy a home even if you have problems with your credit rating.
If you can come up with more than the minimum down payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.
6. You can, and should, get pre-approved for a home loan before you go looking for a home.
Pre-approval is necessary and can give you complete peace-of-mind when shopping for your home. Mortgage experts can obtain written preapproval for you at no cost and no obligation. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you're looking for.
Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mortgage, and being stuck in the renter's rut forever.
This conversation costs you nothing. And, of course, you shouldn't have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options, and learn about the ways you can afford to buy a home, think how prepared and relaxed you'll be when you are ready to make this important step.