Are you a first-time homebuyer concerned about rising inflation? It's understandable to have some reservations, but rest assured that there are still plenty of reasons why buying your first home is a great idea, even during inflationary times.
Firstly, Canada's housing market has historically been stable and resilient, even during economic downturns. This means that homeownership remains a reliable investment in the long run, and you can feel confident in your decision to buy a home.
Secondly, the Canadian government offers programs and incentives to help first-time homebuyers get into the market, such as the First-Time Home Buyer Incentive and the Home Buyers' Plan. These programs can help you get a foot in the door and make homeownership more accessible and affordable.
Additionally, as inflation drives up the cost of living, owning a home can provide a sense of stability and predictability in your monthly expenses. Unlike renting, where landlords may increase your rent at any time, owning your home means that your monthly mortgage payment will remain the same for the duration of your mortgage term.
Finally, by owning a home, you can build equity and wealth over time, which can help you achieve your long-term financial goals.
As a mortgage broker, I can help you navigate the Canadian housing market and find the best possible mortgage deal for your unique financial situation., now could be the perfect time to take the leap into homeownership.
So if you're a first-time homebuyer, don't let rising inflation discourage you from achieving your dream of homeownership. Contact me today to schedule a consultation and start your journey towards owning your first home.
Real Estate: How to Boost Your Credit Score Before Buying Applying for a Mortgage
September 11, 2019 @ 12:59 PM by:
For the vast majority of home buyers, obtaining a mortgage will be a vital part of the purchasing process. Of course, in order to be approved for that mortgage, you will need to ensure that your credit score is in good shape. Luckily, there are a few steps that you can take to boost your score before starting your application, such as:
Fix Reporting Errors
When compiling your credit report, it is not at all unusual for the credit bureaus to accidentally place an incorrect or inaccurate note in your file. For example, if an individual who shares your name has fallen behind on their car loan it can occasionally appear on your credit report. As such, before you apply for a mortgage, it is a good idea to check your report for any mistakes such as these. If you spot any mistakes, report them to the agencies and they should be able to remove the errors in a relatively timely manner. Once the negative mark has disappeared, your credit score will quickly move upwards.
Reduce Your Balances
Your outstanding credit balances are an important factor in determining your credit score. As such, if your balances are currently quite high, it would be a prudent move to try to reduce them as much as you can. By reducing these balances, you are both improving your credit score and improving your debt to income ratio, making it just a little bit easier to be approved for your mortgage.
Avoid Opening New Credit
Each time you apply for new credit, it causes a small ding in your credit score. With this in mind, you should try to avoid opening up new credit cards or taking out new loans for around a year before you plan on purchasing your house. That year will allow time for the effects of previous credit applications to drop off of your report, and you will eventually end up with an impressively high score.
Pay Your Bills On Time
The most obvious way to boost your credit score is also the best way to do so. During the year that you are waiting for your score to recover from any previous credit applications, you should make a concerted effort to pay all of your bills on time. By establishing a pattern of on-time payments, your score will soon show you to be a reliable and trustworthy borrower.
Obtaining a mortgage is an essential part of the home buying process. By following the advice contained in this article, you will be able to boost your credit score and increase your chances of being approved for that mortgage.