by Kevin Lapp
on Monday, May 14th, 2018 at 1:09pm.
Buying a home is a huge decision that should be made based on fact and not fiction. Here are six examples of fiction that may have kept you from buying a home.
You may be surprised to learn that you too can be a home owner.
Fiction: I will need a big down payment.
This is not the case anymore. Years ago, home buyers were required to pay 20% of the purchase price as a downpayment. Things have changed drastically since then. The minimum down payment in Canada depends on the purchase price of the home. It’s now possible to have a down payment as low as 5%. For down payments of less than 20%, home buyers are required to purchase mortgage default insurance, commonly referred to as CMHC insurance.
Fiction: My credit score will stop me from getting a mortgage.
While your credit score must be good, it does not have to be perfect for you to be approved for a mortgage. An excellent credit score will, however, make you eligible for better rates. There are plenty of mortgage companies and products that can help you move beyond your credit challenges and into your own home. No matter what your score is, you should not shy away from consulting with a financial expert or mortgage specialist to create a plan that will help you into a better financial position.
Fiction: Renting is cheaper.
In general, this is not true. Most renters are paying rent that is even higher than a mortgage would be on a similar property. In fact, with home inventory as low as it is, rent is on the rise. The landlord is having his/her mortgage paid, while building credit and gaining equity. That could be you instead. You could make similar payments on a home you own rather than one you rent.
Fiction: The whole process is too confusing.
Hiring the right Realtor® will eliminate any confusion. The right Realtor® can make the experience as smooth and enjoyable as possible and will guide you through the entire process. You are not alone. Qualified help will keep you organized and informed.
Fiction: I don’t need a real estate agent.
Fact: Not everyone can sell a home. Real estate professionals are well versed on the rules and regulations surrounding the purchase of a home and have access to the most up-to-date inventory. Working with a local Realtor® also has its advantages – they will know about schools, price ranges and suitable neighbourhoods.
Fiction: All Realtors® are the same.
Not all Realtors® are the same so be sure to choose wisely. Leaving your investment in the hands of just anybody can mean disappointment. I always recommend you interview two or three potential Realtors® and do a thorough service comparison before making a decision. There is no substitute for knowledge and experience. Find someone you trust and are comfortable with because you will be spending a lot of time sharing personal information with them.