The home buying process has been associated with going into debt, but why does purchasing your home have such a negative connotation towards it? This doesn’t have to be the situation as long as you do your research, acquire financial advice, and make the right decisions.
An article in the Financial Post reveals that currently the level of debt held by Canadians exceeds the country’s gross domestic product by 100.5 percent, which is up from 98.7 percent from the previous three months.
As a result of having so much debt, the Bank of Canada is unable to raise interest rates quickly which will keep them at a consistent level over the next couple of years. Keeping this in mind, it may be time to take advantage of this situation and pay off your debt.
Credit Ratings Vs. Mortgages
The first step in the process of home buying is to find out if you have the ability to buy a house. You should consider two things; do you have enough money and is your credit rating good enough to get a mortgage?
You should be aware of how much money you have, but knowing your credit rating is a different story. You can find out your credit rating for free by asking a credit bureau to have your file mailed to you. Two credit bureaus that can be contacted within Canada are Equifax Canada and TransUnion Canada. If you are unable to wait for a free report in the mail, you can get an instant credit report reading online from TransUnion for $14.95 or Equifax’s for $15.50.
Home Buying Vs. “COMPROMISE”
We all want to live in a fairy tale castle, unfortunately, there is a difference between fantasy and reality. That is not to say you are unable to have the things you always dreamed of, you just need to be introduced to the word “compromise.”
A great example of comprise is shown through an article published in the Toronto Star titled, “For those hoping to be homeowners and parents, compromise is key.” In purchasing a home, one couple decided to make a compromise by buying a property in a location farther from where they originally wanted. When purchasing a home, the location is a major factor that can influence the initial price of the land, and the property tax.
There are always things to consider when dealing with debt and the home buying process is no different. Remember that doing your research, acquiring financial advice, and making the right decisions are all important tactics that should be included in every step of your decision process.
We are Licensed Insolvency Trustees and have extensive experience in addressing financial issues and challenges as well as all the questions you may have, including managing credit. Feel free to email us at firstname.lastname@example.org, call us at 416 736 4357 (HELP), or fill out the contact form on this website, to book a free, no-obligation consultation with one of our debt solutions’ experts.
Make an appointment today, and we will provide some solutions specifically tailored to your situation. We look forward to assisting.