First Time Home Buyer / Income / New to Canada / Pre-Approvals / Purchase / Qualifying / Rates & Terms / Variable Interest Rates

I love my car…but not enough to live in it!

Sounds like a strange comment but let me explain.

More House, Less Car

At least once a month we have someone apply for a mortgage who has worked very hard to maintain a perfect credit record. We discuss their dreams of home ownership and all the great things they want in their new home. Then we get started on completing the application for credit and there it is…THE CAR! The new, shiny latest greatest model that some owners have even named! They have cared for it and never ever missed a payment and it is now blocking their dreams of home ownership. 
When applying for a mortgage, lenders allow a maximum portion of your income to pay monthly debt obligations and when you have a large car payment taking up most of what is allowable, you still may be able to afford a home, just not the one you have your heart set on. Sooooo….. What exactly are you giving up to drive around in that CAR? Maybe the walk-in closet, finished basement or worse the GARAGE! 
So next time you’re driving around searching for the perfect home, think ….am I riding in my new bathroom, or on my new hardwood floors?

If you want to make sure you are looking for a home within your price range please do not hesitate to contact us. We can advise your maximum purchase price with debts as is, or we can look at re-structuring your monthly payments so you can qualify for more.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s