Get Help Buying Your First Home

The problem most renters face isn’t the ability to meet monthly mortgage payments. 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.

Talk to a mortgage broker or a Realtor about the different possibilities that could transition you from renting to owning. These conversations don’t cost you anything, and come with no obligation to actually buy. Take the time to do the research: you might be surprised how affordable home ownership actually is!

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. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.

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), your lending institution may be able to lend you the down payment for your home by securing it against this asset.

Create a cash down payment without 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.

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.

Talk to an Edmonton Realtor about the possibilities of buying real estate in Edmonton.

When Not To Buy

In all your enthusiasm to buy a home, it’s important to remember that with all the reasons to purchase a home, there are also some good reasons not to. Generally speaking, for most people buying a home in their community is a good idea, but if you find yourself in any of these situations, it might be a good idea to put off buying a home for a little while.

You don’t plan to stay in a home for at least three years.

If you sell too soon, all of the costs attached to selling one place and buying another will mean you’ll likely take a loss. This is particularly true in times when annual housing appreciation is slight or nonexistent, such as in times of economical downturn. If you have a job that requires you to move around a lot, or you’re already planning to leave the area soon, it’s probably a good idea to continue renting until you’re sure you’ll be able to stay in one spot for longer that three or four years.

You’re saving to start a business or go to school.

It doesn’t matter if you’re saving to start graduate or undergraduate school, if you’re currently worried about stockpiling a large sum of money away for another purpose, then it’s a good idea to put home ownership on the back burner for now. It’s difficult enough to save up a lot of money for one major investment: saving for two is practically impossible!

You don’t have the money for a down payment or can’t carry a mortgage.

In some cases, it’s just not financially feasible for you to own your own home and, as discouraging as it can be, if you just can’t get together a down payment and the prospect of carrying a mortgage makes you shudder, then you’re probably not ready to own a home yet. It’s okay! Some day when you get your financial feet under you, you’ll be able to make the leap. Keep trying, keep saving, and eventually you’ll get there.

 

There are lots of great expanding communities and new developments cropping up in the Fort McMurray real estate market. Learn more about living in Fort McMurray communities before you start your house hunt, and you’ll be ahead of the game when buying Fort McMurray homes.

Renting vs Owning

Many people rent homes for a long time, constantly wondering if it’s the right time to make the big move and buy their first home. There are several important differences between renting a home or an apartment and owning your own home.

When renting, you’re not as tied to your home in the same way that you are when you own it. You leave many of these decisions and choices up to your landlord, who owns the property you rent. It’s easer to relocate to a new neighbourhood or city, especially if you find yourself having to move on short notice. All you have to do is wait until your lease is up. It’s possible the dollar value of your home may increase, but this won’t benefit you: it will benefit your landlord.

On the other hand, owning your own house or condo gives you choices you don’t have as a renter. You are the one who gets to pick what carpet you want, what flooring would be nice in the kitchen. You can decided when to water the lawn, when to replace the old leaking dishwasher. There are lot more responsibilities when you own your how home. Because you own the property, you have to deal with all the problems that might arise — there’s no landlord to complain to when the water heater breaks!

Owning can also make you feel more tied to a particular community and city than renting does. Most of the time, owning a home makes you feel more “settled”, even if you plan to stay only a few years. For many people, a lot of the value they get from their home is connected to the location their home is in. It can become financially relevant for you to take a stronger interest in your own neighbourhood and pay attention to what’s happening around you.

The financial differences between renting a home and owning a home is also significant. When you rent, your monthly housing cost goes out the door and doesn’t benefit you beyond putting a roof over your head. When you move from your current rental, there’s no financial benefit. But when you own a home, each monthly mortgage payment builds equity and increases the amount you own of the property, increasing your net worth. Your home will increase in value over the long term, so when you’re ready to move five, ten or twenty years later, you will likely be able to sell your home for more than you paid for it!

If you live in Ontario, think about buying Kitchener Homes or Waterloo Real Estate with some of the best Kitchener-Waterloo Realtors available in the area.