As the number of Canadians living alone continues to rise and the average size of households shrinks, the idea of the “nuclear family” as the typical Canadian household isn’t as accurate as it has been in past decades.
If you’re buying a home on your own and wish to help streamline the homebuying and mortgage processes, there are a number of things you can do to boost your chances for success. After all, everything is riding on your shoulders with no one else to fill in the gaps if your mortgage application isn’t as strong as lenders require in order to qualify you for the very best product at the lowest rate.
3 Tips to solo homebuying success
- Purchase a home that suits your current budget and lifestyle. Your first step should be to get preapproved for a mortgage by your mortgage agent. This will help you ensure you only look at homes that are within your price range. You can also secure a rate hold at the same time to ensure you won’t be impacted by rising interest rates while you shop for a home within the next 90-120 days.
- Keep debt at a minimum and credit at a maximum. Don’t make any major purchases such as leasing/financing a vehicle or buying furniture on a don’t pay for XX amount of months plan. Both of these types of purchases will impact your debt servicing ratios. The best way to ensure your credit stays strong is to pay bills regularly and on time, as well as pay down your debt as much as possible.
- Ensure your income remains predictable. Don’t switch jobs or become self-employed when you’re in the market to buy property. Lenders want to see consistent income sustained over time.
Another great way to help ensure you get into the right home is to compile an expert homebuying team that consists of a great local mortgage agent, real estate agent and real estate lawyer. Together, they’ll be able to answer all your questions and help save you as much money as possible while finding your dream home.
Have questions about buying a home on your own? Answers are a call or email away!