The number of Canadians buying a home on a single income is growing. Since single mortgage applicants rely on only one salary and one credit profile, it can be trickier to obtain a mortgage. It is possible to get a mortgage if you plan ahead and ensure that you are in a good financial position.
There is no "right time" to buy a house, but there are times when buying a place on a single income makes sense. Buying a small home is a big commitment, but it gets you on the road to equity and sets you up for larger house later on.
Owning a home on a single income can be very difficult to achieve, but it is possible.
Here's what you need to do to get pre-approved for a mortgage.
- Make sure your finances are in exceptionally good shape ahead of time. Review your credit score and avoid doing anything that could hurt your score.
- A mortgage requires a down payment of at least five percent. Having a co-borrower or guarantor on your mortgage can sometimes help secure a mortgage and get a better rate. Look into the First Time Homebuyers Incentive, Home Buyers Plan, and tax rebates.
- Once you are confident that your finances are in order, contact your lending institution for pre-approval. Getting pre-approved gives you an amount of money you can borrow for your mortgage. From there, you can start to budget and decide whether you want the full amount or a smaller amount.
- As you prepare to buy a home, it is important to make sure you have a budget for all expenses for the property. This includes closing costs, property taxes, utilities, regular bills, and any renovations needed. It also helps to have a list of local tradespeople like a plumber and electrician in case there is an emergency.
Having a home on a single income is entirely possible if you plan for it. Try to avoid letting the long process and possibility of obstacles keep you from securing the home of your dreams. Let me help you find the perfect home and secure a mortgage on your single income. Don't hesitate to call, we will ensure everything you needf and require is taken care of! This is your most important investment and it requires knowledge, and expertise advice.