Newspaper articles about home buying can be misleading for those who are considering buying a home in the future. Here are the reasons why I advise you to stop reading the newspaper if you want to buy a house:
A typical newspaper article might suggest that the average person who makes $45,000 per year can have their down payment including closing costs totalling $45,645 by saving $500 a month for six years. The real length of time it takes could be as long as 7.7 years to save this amount to purchase the average home in Ontario worth $623,000.
What this fails to point out is that a person with annual income of $45,000, even with a down payment of that amount, does not qualify to purchase a home valued at $623,000. The maximum they could qualify for would be is a home or condo selling for $225,000. The revised amount they qualify for requires a down payment including closing costs of $14,625 and should take 2.43 years to save, which is much more attainable.
Reading misleading information can leave future home buyers feeling discouraged. When you have the right information and a clear picture of the purchase price that you qualify for, you’re less likely to just give up and more likely to come up with a plan. It’s about more than the amount of down payment you can scrape together, you’ll need to know if you can qualify for the monthly payments and property taxes.
A good way to start formulating a plan for home ownership is to meet with a mortgage specialist and get pre-qualified for a mortgage before you begin hunting for that dream home. When you’re looking for residential property in Toronto, Mississauga, Oakville or anywhere in the GTA, you want a mortgage specialist who is knowledgeable about the local market. I’ve built relationships with 80 lenders and have over 7200 mortgage options to show you, so let’s get started today. I’m a mortgage broker in Brampton, and I am here to make those dreams a reality.
