It’s no secret that the cost of purchasing a home in Toronto, specifically, but Canada in general, continues to rise. For many millennials who are looking for a house to call their own, this can be frustrating. You scrimp and save and hope that you can pull together enough cash for a down payment, while at the same time looking at prospective houses around town and hoping to find the right place at the right price.
This is where your real estate agent can help you, by providing guidance covering all aspects of the homebuying process. I do this all the time for my clients.
A very real concern among potential homebuyers is being able to pay for their home in a booming real estate market. This is why you need to put a lot of thought and careful planning into your homebuying journey, starting as soon as possible. Also, I advise you to be completely transparent and honest when providing information to potential financing sources.
Of course, you’ll do this.
But apparently, not everyone thinks the same way. Last year, the credit rating company Equifax published a report indicating that 23 percent of younger homebuyers believe it’s alright to lie on their mortgage application.
It’s not. Although a surprising number of younger homebuyers believe it’s acceptable to tell little lies as a means to and end, this is actually a serious infraction called mortgage fraud. If you, your mortgage broker, real estate agent, or lawyer—anyone—misrepresents, lies or falsifies information to get a mortgage that wouldn’t have been provided if truthful information had been provided, it’s breaking the law.
So what do you do?
Plan your finances carefully.
ave as much as you can for your down payment and closing fees realizing that monthly mortgage payments will follow, along with routine homeowners’ expenses. This is a good time to look for a savings account or investment vehicles that pay higher-than-average interest or returns.
Start a budget or adjust your current one to ensure that you’re accruing as much savings as possible. Cut or find ways to reduce unnecessary expenses. You might find it helpful to talk with an investment advisor, who can help you with all this. They create budgets and investment plans based on your specific needs and goals.
Learn your credit score.
This is very important, as it impacts the amount of money you’ll be allowed to borrow. To ensure that your credit score is in an acceptable range, pay your bills on time.
Talk to your banker about your homebuying plans.
He or she can help you determine what you can afford based on your income, savings, credit history, and other criteria.
Look into Canada’s first-time homebuyer’s incentive.
You might be able to qualify for this loan based on your annual income.
Finally, talk to your real estate agent about all these issues. He or she will be happy to help you by providing information, working with you to locate the right house and serve as an intermediary as you deal with a variety of professionals.
It’s no secret that the cost of purchasing a home in Toronto, specifically, but Canada in general, continues to rise. For many millennials who are looking for a house to call their own, this can be frustrating. You scrimp and save and hope that you can pull together enough cash for a down payment, while at the same time looking at prospective houses around town and hoping to find the right place at the right price.
This is where your real estate agent can help you, by providing guidance covering all aspects of the homebuying process. I do this all the time for my clients.
A very real concern among potential homebuyers is being able to pay for their home in a booming real estate market. This is why you need to put a lot of thought and careful planning into your homebuying journey, starting as soon as possible. Also, I advise you to be completely transparent and honest when providing information to potential financing sources.
Of course, you’ll do this.
But apparently, not everyone thinks the same way. Last year, the credit rating company Equifax published a report indicating that 23 percent of younger homebuyers believe it’s alright to lie on their mortgage application.
It’s not. Although a surprising number of younger homebuyers believe it’s acceptable to tell little lies as a means to and end, this is actually a serious infraction called mortgage fraud. If you, your mortgage broker, real estate agent, or lawyer—anyone—misrepresents, lies or falsifies information to get a mortgage that wouldn’t have been provided if truthful information had been provided, it’s breaking the law.
So what do you do?
Plan your finances carefully.
ave as much as you can for your down payment and closing fees realizing that monthly mortgage payments will follow, along with routine homeowners’ expenses. This is a good time to look for a savings account or investment vehicles that pay higher-than-average interest or returns.
Start a budget or adjust your current one to ensure that you’re accruing as much savings as possible. Cut or find ways to reduce unnecessary expenses. You might find it helpful to talk with an investment advisor, who can help you with all this. They create budgets and investment plans based on your specific needs and goals.
Learn your credit score.
This is very important, as it impacts the amount of money you’ll be allowed to borrow. To ensure that your credit score is in an acceptable range, pay your bills on time.
Talk to your banker about your homebuying plans.
He or she can help you determine what you can afford based on your income, savings, credit history, and other criteria.
Look into Canada’s first-time homebuyer’s incentive.
You might be able to qualify for this loan based on your annual income.
Finally, talk to your real estate agent about all these issues. He or she will be happy to help you by providing information, working with you to locate the right house and serve as an intermediary as you deal with a variety of professionals.
