Not even a pandemic can slow buyers. More of us are working from home, staying in, homeschooling and all need a space to co-habitat together.
Canadians want more space. A place to recharge, work, and educate their children. BC in particular is being showcased for all the beautiful locations with waterfront views. Only minutes away we have more affordable real estate outside of the lower mainland with a slower lifestyle pace – a place where you can truly relax.
If you’re looking to enhance your lifestyle there could be some key steps getting in the way of your dream to move up the property ladder or acquire a second home to staycation this summer. Here are some tips to watch out for:
- Your outside debt. Many people are unaware that every payment outside of your mortgage takes away your ability to qualify for a mortgage. Most Canadians have car loans, student loans, credit card loans, or lines of credit. Did you know for every $480/month payment outside of your mortgage that’s $100,000.00 taken away in mortgage qualifications?! Imagine that, $900/per month will take away just over $200,000 in mortgage qualifications! There is a big difference in being approved for 500k or 700k. Understanding that outside debt is a huge factor and needs to be addressed with either a refinance to consolidate this debt into your existing mortgage or pay down strategy will help you improve your credit score, cash flow, and future qualifications.
- Existing time in your job, or work interruptions. Some of us have had unfortunate interruptions to our work or reductions in income. Depending on your type of employment, different lenders use different averages of incomes or want to see a specific amount of return to work with consistency prior to issuing an approval.
- Not being pre-approved. This is huge for many reasons. With all the factors and calculations that go into purchasing a home – the down payment, your income, credit, closing costs, and personal profile – shopping without a FULL pre-approval to understand those specific factors will lead to disappointment and can unnecessarily lead to bidding up the price of homes.
- Zoning and/or property condition. The last stage, once a contract is accepted, is the property review by the lender. Anything named, “handyman special”, “as is where is”, “leased land”, “manufactured home”, “cable cord construction”, “co-op”, “commercial-zoned”, “maintenance not being done properly on properties”, or “water and sewer connections/access to the property and year-round access” all contribute to who will lend on it and at what cost. Some people will have to use the equity in their existing home or savings to purchase certain properties or be willing to pay higher rates. Discussing your intentions of purchase during the pre-approval process and subject period will assist you in gaining clarity.
This is one hot market! Being prepared and learning what applies to you will help you move forward with you living your best life.
If you’re looking to purchase a vacation home this season reach out to our team at hello@countoncalla.ca. We are here to help you every step of the way!
Written by Angela Calla
Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade, and is the best-selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to the YWCA helping empower women and children in our community. Additionally, in August of 2020, she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.
Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sing the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.
