by Lino Arci
on Tuesday, October 6th, 2015 at 6:01pm.
Buying your first home is arguably the most important financial decision you and your family will ever make. Even before starting your real estate search, you, as a home buyer should outline affordability.
What Can You Buy on Your Budget?
Your income and savings play a pivotal factor in your down payment of your first home. The Average detached home in Vaughan and Woodbridge is approximately $500,000, a 20% down payment is $100,000. That takes a savvy saver to get there, but there is hope.
A 5% Down Payment
Everyone wants to put down that 20% down payment but with house prices on the rise it can be difficult. The good news is you do not have to put your home purchase on hold. You and your family can qualify for your mortgage and put down only 5%, but it does come with stipulations. Most Banks will ask for a stable work history and a strong credit score to qualify.
The Positive and Negatives
Sometimes less is more. In putting down a lower down payment families are able to invest more in RRSPs and have that liquid fund to put towards their children’s education or improvements in their home, helping to increase its value in the long term. Having only a 5% down payment will however force home owners to purchase CMHC insurance.
I can help you make that informed decision, give me a call and I will be happy to guide you through the home buying process.