Buying

Now, let’s imagine that you decide you want to wait for one year before purchasing a home.  I hear it all the time.

For the past eight years, the Toronto Real Estate Board prices have escalated just under 5% per year.  The effect of compounding has caused house prices to nearly double during that period.

Double.  Yes.

By waiting until next year, the $300,000 dream house will now cost you $315,000.

Will you manage to save another $15,000 in a year?  Most people would say no.

Every month, your ideal house is creeping up in value by $1,200.

The faster you get on the train, the sooner you can ride for free.  What does that mean?  Well, if you are able to purchase five years sooner, you’ll pay off the mortgage five years sooner and live in the asset for free (besides paying taxes and utilities).

The dilemma for most people is this:  After rent, car payments, utilities, putting food on the table, there’s really not a lot of money left over.  But it’s been that way for years, and it won’t change.  It’s like the age-old excuse, “I don’t have enough time”.  Well, nobody is going to give it to you… you’ve got to find a way to build up your savings.  OR you can find a way to lower the barrier to entry with a smaller downpayment.

Most people believe it takes $20,000, or even $50,000 to buy a home.  Five or ten years ago, they may have been right, but that’s no longer true.

Did you know that there are ten companies who offer zero downpayment mortgages?

Were you aware that you can buy a home with zero down, plus get up to 7% cash back to pay for your downpayment and closing costs?

A lot of folks think that interest rates are significantly higher with zero down.  While they’re higher than the best rate, they’ve really come down and are quite competitive.

To get a 100% loan, you need three things:

  1. Good credit – usually 680 score or better
  2. Minimal debts – you can’t have a credit card with $30,000 owing
  3. Steady employment with a combined salary over $60,000

Also, there’s a government program that can help first-time buyers with up to $10,000 or more in free money.

That way, if homes go up another 5% this year, you can now sleep at night knowing that you just earned $15,000 instead of renting and paying your landlord’s mortgage.

If you’d like to explore your mortgage options, reach out to us using the form on this page.  We’ll do our very best to help you.

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