It was bound to happen sometime. You’ve spent years living in your home building memories with your family, watching the kids grow up. But now they’ve all moved out and you have noticed the house feels big. And empty.
It was bound to happen someday. It’s Sunday again, and you’re cleaning empty bedrooms and wondering why you spend your time this way these days. The kids have moved out, and the house is starting to feel too big.
Homeownership is something you’re considering, but if you have outstanding debt it can seem daunting to also take on a mortgage. You may worry about being able to pay all of your monthly payments, or if you’ll even qualify for a mortgage while carrying additional debt.
Having debt of any kind is normal for anyone, and that includes today's home buyer. Credit cards, lines of credit, auto loans, they’re all commonplace in a typical household. But how much debt is too much, and will it affect your mortgage qualification?
In Canada, mortgage lenders require a down payment from the buyer in order to qualify for a mortgage. The minimum amount required is 5% of the sale price of the property you're buying. The primary reason for a required down payment is to show good faith to the lender you intend to fulfill your payback obligations as you’re financially invested in the initial payment.
If you’re thinking about buying a brand-new condo, one of the foremost thoughts on your mind is likely how long the build will take. Questions might arise, such as how early to think about listing your current home for sale or how long to sign on your current rental lease.