How to invest in a new home
With the help of a financial adviser, you can invest in your own home without having to borrow from a bank or mortgage company.
Here’s how to do it.
By Paul F. Dyer, Financial Post EditorIn a world where many Canadians struggle with their credit and mortgage rates, there’s a growing movement to build equity in your home, even as they struggle with debt.
But while there’s no shortage of homes to buy in Canada, you might want to consider the options that may be available to you.
Here are the basics you need to know about buying a home, and what you need as you look to buy.1.
What you need and when to buyIt’s a good idea to start thinking about a property right away.
If you’ve been thinking about buying and can’t find a home that suits your lifestyle, you should talk to your financial advisor about a new project or purchase.
A new home can be a great investment in a growing economy, and you can be sure that it will help boost your net worth.
If you can’t afford to rent or buy a home right away, a down payment of at least $1,500 (or as little as $750) can be needed to secure a property.
You can also find mortgages and other financing options in your neighbourhood.2.
How much you can affordIn Canada, a one-bedroom apartment in Vancouver costs about $1.7 million (U.S.) while a two-bedroom condo in Toronto can cost about $2.4 million (Canadian).
If you’re looking to buy a two bedroom condo in Vancouver, you could save $1 million (about $8,800) by going for a three-bedroom.
But if you’re thinking of buying a two bedrooms, you may need to increase the amount of money you’re willing to spend.
A three-bedroom condo in the same area could cost up to $20,000.3.
What to look forIf you’re buying a property with a low income or low credit score, it might be advisable to consider getting a mortgage or a home equity line of credit (HELOC) instead.
HELOCs are typically cheaper than a mortgage and can give you more flexibility when buying.
The more HELOC you can borrow, the better.
If the value of your property is low, you’re likely to need more HELocs, so it’s a smart idea to consider both.4.
What options are available?
There are several different types of property financing available to Canadians.
There are a few things to keep in mind.
Some types of financing are easier to finance and can be done online, while others require a deposit.
Here are some of the basics.5.
Who’s responsible for financing?
You will need to make sure your bank or lender is licensed to do business in Canada.
The Canada Mortgage and Housing Corporation (CMHC) regulates home ownership, and your lender will handle your mortgage application.
If your mortgage is approved, your lender must pay interest on your mortgage.
You’ll also have to pay taxes and other fees to the government.
If this isn’t your bank, you will have to apply to a bank.
You will also have a personal guarantor, a mortgage company, or a financial institution to handle your loan.
The lender will then take care of any fees you pay.6.
When to buyA new home isn’t cheap.
You could save a lot of money by buying a three bedroom, two bath condo instead of a three room home.
However, you need a lot more cash to pay for a new house, especially if you have an existing home that needs repairs.
There’s a wide range of prices for new homes, but it’s important to consider what you can get for your money.7.
What should I do before I buy?
There aren’t any rules that govern when you can and cannot buy a new property, so you should start by thinking about where you’ll live and the type of home you want.
You should also consider whether or not you’re able to afford to live in your current home.
A home with a large yard can be expensive, so some people prefer to live with a close family member in their current home, which can help reduce costs.
Some people may not have a family member who lives nearby, so they may want to move in with a friend or relative, or rent an apartment from an organization.
If that’s not an option, you’ll need to consider your lifestyle.
For example, some people choose to rent out a garage, while some may choose to live on their own.
If a large garage is a problem, you shouldn’t buy it, but you should consider renting out a smaller garage if you want to be able to fit in a larger space.
If buying a small house in Vancouver isn’t an option for you, you’d better consider living in a neighbourhood with a smaller size or smaller property.8.
When will I be able, and can I afford, to buy my