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Whether you are investing in your first home, or looking for a place to start a new chapter for your family, affordability is top of mind when it comes to house hunting. A recent survey found that while 91 percent of Ontarians between the ages of 25 and 34 believe owning a home is a smart financial investment, nearly 70 percent say its unaffordable. But that doesn’t have to be the case.
With some strategic financial planning, a good mortgage broker, and a little compromise you’ll be able to make a smart and affordable investment in a home you love. Here are five simple ways to make buying a home more affordable:
1. Compromise on Your Commute
As the saying goes, “location, location, location.” Many homebuyers already have a particular neighbourhood in mind, whether it be for a school district or its proximity to work. But it’s important to keep in mind just how much house prices can fluctuate between neighbourhoods and town lines. Map out how much time you want to spend commuting and look at neighbourhoods on all ends of the spectrum to see how prices differ. Proximity to shopping, dining, and entertainment districts may have to give way in order for the math to work in your favour.
2. Explore More than Detached Homes
If location is too big of a factor to compromise on, you may have to re-imagine the type of home you want to buy. There can be as much as a $200,000 difference between a semi-detached and a townhouse in the Greater Toronto Area. Plus, semis and townhouses have come a long way in design, offering just as much space as detached homes.
3. Invest with Friends or Family
More and more millennials are finding creative ways to invest in real estate, including buying houses with friends or family members. This growing trend is a great option for first-time buyers who are eager to get into the housing market, but lack the budget to do so on their own. Remember—this doesn’t have to be a long-term solution. That initial investment will pave your way into the market and allow you to build equity to upgrade to your own home.
4. Buy a Fixer-Upper
One of the best ways to get more home for your money is to opt for something in need of a little TLC. If you are willing to roll up your sleeves and put a little elbow grease into your home, buying a fixer-upper can be a great way to scale back on your purchasing budget and save even more by doing DIY renovations. You may also qualify for a purchase plus improvement loan, which could give you the ability to borrow up to 10 percent of the value of the as-improved home to put towards the cost of renovations and include it in your mortgage loan amount.
5. Work with a Mortgage Broker
Unlike the banks, mortgage brokers take a personalized approach with our clients so we can craft the perfect solution for your current and future goals. We specialize in working with all types of mortgage situations, including first-time buyers with small budgets and financing for those with bad credit. Mortgage brokers work for you—not the lenders—which means we can find the best possible solution for your financial situation.
No matter what your financial concerns are, we can provide you with the guidance you need to make the best financial decision for you and your family. We’d be happy to not only find you the right mortgage, but share our advice about house hunting, because we’ve been there too. Get started today by filling out our quick and easy online mortgage application, or connect with us and we can walk you through it.
If you have a comment about this blog post, have questions about the different mortgage types we provide or wish to ask any other questions about how to get a mortgage from CVE Mortgage Group, please feel free to contact us