There are a lot of big steps you take in your life. Buying your house is one of them. Getting your house can be both exciting and challenging, especially if it is your first home. Carefully lay out your plans for it. If you do not have the finances to pay for a down payment, you can still buy that house you want because in Canada, you can move into your new home without spending a cent on a down payment. Before plunging into the process of home mortgage, take the time to consider the following:
- Choose the house you can afford. It should be within your targeted budget to pay for a number of years. Do not get a house that you know would stretch your financing capability to a point that you cannot pay for it. Set a budget per month to determine how much money you can allot for mortgage.
- Check the location. Proximities should include public transportation, schools and market or shopping areas. You can consider churches and parks too, but most especially, check with the local police station on the area’s crime rates. You would want to live in a city where you feel safe in your own house. You should also check the weather in your desired location. Cities like Ottawa can have extreme weather conditions.
- List down the requirements you need for a mortgage loan. These documents include personal information, identification cards like a driver’s license, copy of your tax statement, and certificate of employment or if you own your business, your business income statement. Other documents are copy of monthly bills, bank account statements and proof assets such as cars. Prepare these documents and keep them together in a document case.
- If you are a first time house buyer, you can check for financing incentives from Canada’s Economic Action Plan. You can avail a CAD$5,000 income tax credit under the First-Time Home Buyer’s tax credit. This will somehow loosen your credit
- Approach major lending companies that offer no down payment plans. Complete all the requirements they ask you to fill and submit. If you do not qualify for a mortgage, get a Private Mortgage Insurance or PMI. PMIs offer no down payment but you will have to pay higher monthly mortgage per month.
- Canada allows other financing by using your life insurance and retirement pensions. If you think you can do well without these insurances for the meantime, you can use them for your house. If everything else is not giving you a favorable outcome, you can always borrow money from your family or trusted friends.
Owning your own abode is a major accomplishment in your life. Real estate is one of the good investments you can own. The value of a home does not depreciate. In fact, most of houses and lots increase its values over time. So even if you make a small sacrifice for a limited time, the end product – your home – is a lifetime reward.