IF YOU ARE A TENANT…
It’s a dream we all have to own our own home and not have to pay rent anymore. If you’re like most tenants, you feel stuck between the walls of a home that doesn’t belong to you. You are taken and you do not see how you could acquire your own home.
Don’t feel stuck anymore…
No matter how long you’ve rented or how difficult your financial situation seems, the truth is that little-known information could help you bridge the gap, change your status from renter to owner. With this information, you can learn how to:
- Save for your down payment
- Stop enriching your landlord
- Stop wasting thousands of dollars on rent.
6 little-known facts that can help you buy your first home:
The problem that most tenants face is certainly not their ability to meet a monthly payment, everyone knows that you must meet this obligation every first of the month. The problem is rather to accumulate enough capital to make the initial deposit on a property that will remain with you.
Saving that starting amount isn’t as hard as you might think if you take note of the following six points.
- You can buy property with a lot less cash than you think.
There are local or national programs (like the Home Ownership Program) to help people get into the real estate market. You can even qualify as a first-time buyer even if your spouse has owned property before if your name has not been registered as a co-owner. Make sure your mortgage broker is knowledgeable and knowledgeable about homeownership programs to show you all the possibilities.
- You could get help from your financial institution for your down payment and acquisition costs.
Even if you don’t have the amount of the down payment, if you have no debt and you have net assets (for example, a car paid for) your financial institution could lend you the down payment by taking this credit note.
- You might find a good broker willing to help you.
Some sellers may grant a second mortgage. In this case, the seller more or less becomes the lending institution. Instead of paying him cash for his property, you would pay him monthly payments.
- You could create cash without actually going into debt.
By borrowing money to invest in RRSPs up to the desired amount, you could benefit from a tax return that you will use as cash. It is true that the money thus borrowed can technically be considered a personal loan, but the monthly payment could nevertheless be minimal. Thus, the money invested in the property and in the RRSP is yours.
- You can buy a property even if you have credit problems.
If you can’t raise the minimum cash or secure a loan because you don’t have any equity, lending institutions will still accept your mortgage application.
- You should be pre-qualified for a mortgage before you start your search.
This is easily done and gives you peace of mind when shopping for a property. Mortgage brokers can get you approved in writing at no cost or obligation. Much more than a verbal approval, a written prequalification is equivalent to money in his bank account. You get a certificate that guarantees your mortgage level; very useful when you finally find the home you were looking for. Consider hiring a professional who specializes in mortgages. Using their services can mean the difference between getting a mortgage or being stuck with their landlord forever.
