There it is, your dream home, sitting right in front of you, only problem now is how do you afford it. Some people see home ownership as “that step” that just won’t happen. It was recently stated in the news that Canada's housing prices are 25% inflated in contrast to where we should be. It’s hard to disagree with that remark when you see homes selling for $100,000+ more then when they were sold last year.
More and more you find young couples living with relatives and or parents for some time before and after they first get married to save money for a downpayment. For some people this is a great way to do it. For others it is simply a way to not really save but live the life they may not have if they had to pay a mortgage, however in reality all that extra money there spending on clothes, shoes, vacations etc.. is the same as what they would have spent paying down their first home.
Solution - Talk to a mortgage broker, in fact talk to two or three. Not all mortgage brokers are created equal….trust me! Get different opinions and ask them what they suggest is the best way for YOU to save money with your lifestyle. You can still put 5% down on a home but remember there are certain restrictions with that such as additional qualifications with the bank as well as being approved by The Canada Mortgage & Housing Corporation. Ask about bi-weekly payments instead of monthly payments, look for homes that have a finished basement that you could rent out to help with paying down the mortgage. Make sure whoever you decide to get your mortgage with gives you a pre-approval. The process of looking for that dream home will be much more exciting if you looking at a home you can afford then something that is $50,000 over your price range!
Last but not least ASK! Don’t be afraid to ask questions. Mortgage brokers and real estate agents have heard it all! No Question is stupid and no question is irrelevant, also, make sure TO HAVE FUN!