Deciding to buy

Purchasing a property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully.


Why Do You Want To Buy?

Are you tired of paying rent? Have you decided to pay your own mortgage and not your landlord’s? Have you outgrown your current home? Are you looking for an investment portfolio? Are you looking for a rental property? Would you like a larger yard? Would you rather live in a different area? Do you want to shorten your commute? Having a clear sense of your reasons for buying will help you choose the right property and give your agent a sense of what he/she should be looking for in your dream property.


Has Your Income Grown?

Property ownership is an excellent investment; whether you are looking for your dream home, a rental property, or to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity or to obtain a greater return on your initial investment. Historically, real estate as been an effective hedge for inflation and will put your money to work as one of the best investments you will make in your life.



Preparing to Buy

Before you start shopping around for a property, it is a good idea to make some preparations so you are ready when  you come across a house you fall in love with.

Building your financial portfolio:

  • Financial statements
  • Bank accounts
  • Investments
  • Credit cards
  • Auto loans
  • Recent pay stubs
  • Tax returns for two years
  • Copies of leases for investment properties
  • RRSP, life insurance, stocks, bonds, and mutual account information.
Check your Credit Rating
There are two national credit bureaus in Canada: Equifax Canada and TransUnion Canada. You should check with these institutions to receive a credit score which will gauge your likelihood of obtaining mortgage funding from a lender. Your credit score will have a huge impact on what type of property you can buy, and at what price. Things such as payment history, outstanding debt, credit account history, and recent credit inquires are some of the factors in determining your credit score. A credit score can range from 300-900,  with some lenders needing a minimum score of around 680 to receive good interest rates. 

It is first recommended to check your credit rating with an experienced lending institution so that we can determine what you can afford. Please give me a call if you have any questions regarding this process. Our in-office Mortgage Broker would be happy to answer any questions you may have!