When it comes to purchasing a home, there are still ways to figure it out, without it damaging your finances. It’s unfortunate that salaries are not keeping up with inflation, and many more people today are working as freelancers or contractors; something traditional lenders are not fond of. So when it comes to looking to purchase your home, here are four helpful tips!
Clean Up Your Debt
What this means is to choose to use our credit cards a little more wisely, as our credit cards do have high interest rates and if you let it accumulate it may take a while to finally clear your debt. Be smart when it comes to using your credit card, word to the wise try to pay off as much as you can each month. There’s nothing wrong with purchasing fancy stuff you like if you can afford them; but it won’t help you saving up for the home you wish. You should also understand the effect of the financial decisions we make, whether they are a mistake or clever purchases.
Move away from big cities
Buying a home or property in a country could be beneficial to you, while you aren’t as close as you would be to a lot of things like in the big city, the homes are cheaper. If you do plan on looking into smaller communities, also investigate their public transportation and see how easy it is to access, so you are not constantly relying on your car to get around.
Help from Parents
We can always tap into our RRSPs to help with a down payment, but we must pay it back. But if you don’t have that option, you can always rely on your parents. They can lend you the money from their own RRSPs. It’s safe, can securely earn them interest, and will help you out in the process. This is a non-conventional way about getting money, this is not a family member “gifting” ‘you the cash to help with your down payment. The loan is truly a gift, and not repaid with interest.
Rent Out Part of the Property
If you are looking at homes that may be just a little out of your price range, you can also rent out a room, while keeping some privacy. The money you receive in rent can help pay off your mortgage by going straight into your mortgage payments! It is important that you make sure all your activities are legal in your municipalities.