It is probably many Canadians’ dream to be home owners. Living in a home that they can build equity and value in the long term. A home where they may decide to start a family in. The question to rent or buy is most likely in the minds of many.
In these current market conditions it has become clear for Canadians that home ownership will be difficult to achieve. With all time debt levels, high interest rates, and needing to be qualified using stress test rules has made it, for some, almost impossible to qualify for a mortgage.
So, when you are deciding whether to continue to rent or buy there are many factors that need to be took into consideration.
For many people and families, it is actually better to continuing renting than to push and pressure themselves to try to buy a home of their own due to their personal financial circumstances. And for others it could be the right time to start thinking about and planning for buying their first home.
Working with a credible and trusted mortgage professional is also very important. Mortgage Brokers and Mortgage Agents have to abide by strict Government Regulation that is designed to protect the consumer.
For example, at Trusterra Mortgage we like to get to know our customers in detail. We will ask personal and tough questions to make sure we fully understand your needs and wants; to make sure we understand where are you in your life journey in terms of employment / income and how much debt obligations you are responsible to. What other obligations do you have?
In the process of getting to know our customers we will have them fill out our mortgage application. We will pull their credit reports and analyze it along with their mortgage application. We want to make sure that your total income compared to your total debts are within a reasonable level. Checks and balances need to be made insuring that your income can support monthly mortgage payments and other monthly expenses without putting you and your loved ones in undue financial pressure and stress.
Part of this process is to consult together. Having a heart-to-heart conversation and figuring out things together. At the end of the day we want to make sure that everything works out for you and if that means that for the time being you need to rent, then that is what is best. On the other hand, if after reviewing and analyzing your application and information everything looks healthy we would recommend that is acceptable for you to buy your home. In the application process you would be informed of how much of a mortgage you can be approved for and with how much down payment.