Buying vs Renting? Is first time home ownership on your wish list?
If so assess how close you are to making that dream come true.
- Are you familar with the real estate market in your preferred neighbourhood?
Do you know how much you can afford to spend on your 1st home?
- It is best to get pre-approved for a mortgage using a mortgage broker or lender rather than using online calculators because those calculators don't often factor in your debt and credit score.
- Conventional mortgages require a minimum of 20% down payment and Hi Ratio insured mortgages require as little as 5%
- Conventional Lenders favour full time salaried borrowers and hi ratio borrowers may face tighter restrictions if they have part time, contract, commission sale and self employed will be asked to provide 2 years of employment and credit history to quaify
- A poor credit score makes it harder to get a mortgage approval and you should always make your minimum monthly payments on time. Best practice to keep a good credit score is to keep your credit balance below 35% of your allowed borrowing amount.