The biggest step I often face as a Realtor is not can we find our buyer the right home, but WHEN we find the right home do we have any problems closing on that home. When working with buyers I aim to make sure they have taken all the necessary steps in knowing what they are looking for, understanding all the costs in purchasing a home, and listening to their plans and motivation for purchasing a home.
When purchasing a new home the downpayment can often be the limiting factor in what you can afford even more so than your financing capacity. Your credit score and income can be great but even though you can qualify to buy a more expensive home, however the value of downpayment available usually indicates your price range.
Many buyers often only rely on savings, when another option is a cash “gift” from family or friends (hopefully repaid at a later date). One great option many buyers have turned to is using RRSP savings as their downpayment. This is further explained by Jenny Nicoll on her post RRSP – Home Buyers Plan and Canada Revenue Agency’s website. Any combination of downpayment can often be the difference in the home you can afford. Knowing these options and repayment costs are important when deciding what works best for you and your home buying strategy.
Talk to a mortgage broker or your bank and they will be happy to pre-qualify your mortgage and explain all your financing options.
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