You got that job, you got married. Maybe your wife is expecting a baby. You are looking to buy a house or a home to be specific.
The question comes to mind how you can afford the down-payment. You check the property prices and they are shooting up everyday. Usually you need about 5% down payment. With the new lending rule coming out in 2018, you will need to have your income stress tested for an interest rate of about 4.89%.
Here are some useful ways you can afford that home that you want:
- Eat out less. Cook some delicious meals together and spend more time with the family.
- You might be able to afford your dream home by looking for houses with a rental suite. The income from the rental suite can be used to offset your mortgage payment.
- You can apply for mortgage plus improvement. See your mortgage broker or bank for this.
- Look for potential in a home rather than a ready-made or brand new home. This means look for potential renovations like adding a room, an in-law suite, an extra bathroom, putting in a garage and [insert your desired want here].