Yoga for your personal finances Rudsworth June 4, 2021 Home & Garden The heart chakra buying a home (part 2) By Jacqueline Richards Part 1 of this article discussed the importance of a balanced heart chakra in helping navigate the path of finding the right home—one that blends the requirements of the body, the mind, and the soul. This is a huge purchase and one that should meet both practical considerations and the indefinable qualities that speak to an individual’s heart. There are four primary factors a buyer needs to look at when beginning the journey to find a home: CreditThe buyer’s credit history and credit score will be looked at by the mortgage lender . For this reason, it is a good idea to know where you stand with the credit bureaus before applying for a mortgage—a forgotten phone bill from several years ago might be a problem. You can pay to get an immediate report online or you can send in a fax or mail request. Even if buying a house is sometime in the future, you can check your history and then start improving your score. The better your credit score, the better the interest rate you will get on your mortgage. Down paymentsThe average Ottawa home sold for $320,000 in January 2010. (in 2020 – $529,678) Which means that a buyer who wants to avoid invoking the Canadian Mortgage & Housing Corporation’s (CMHC) mandatory insurance program–and stricter lending rules—will need a down payment of more than $64,000 (20% of purchase price). Buyers with smaller down payments need to meet CMHC requirements and will have the cost of the mortgage insurance added to their mortgage. It is possible to withdraw up to $20,000 from an RRSP to use towards a home purchase. Family may also decide to help with a down payment—if it is to be repaid, it is best to have the terms of repayment laid out and signed off on. This protects both parties from the unexpected. BudgetYour eyes may be bigger than your bank account and borrowing options. It is a bad idea to buy a home whose mortgage payments and incidental costs put you at financial risk. Take a look at how much rent you currently pay, and how much money is left at the end of each month and build a realistic budget. It is unlikely that all your habits will magically change simply because you bought a home. If you think they will, try living within that new budget for three months to see how tough it is. (Your mortgage provider uses a formula to determine how big a mortgage they think is safe to lend you.) The PurchaseMake a list of must-haves and would like for your ideal home. Location—heart of the city, or in a family-friendly suburb; is public transit or a commute important; Local schools and recreation facilities; big garden or no garden; number of bathrooms; garage; workshop; room for a home business; modern or heritage—the list can get very long. It won’t be possible to get everything on the list, so know the absolutes that will severely impact quality of life. You can always add another bathroom, but a two hour commute each way for the sake of a bigger home means 20 hours a week you can’t spend with your family! Have a Mortgage Specialist Mortgage specialist– a mortgage specialist doesn’t cost you anything and has access to many financial products. Always strategizing the best possible options for your financial situation! And a mortgage specialist only checks your credit history once looking for a mortgage, a Homeowner Line of Credit, a credit card, or maybe a personal loan. Get a pre-approved mortgage so as to avoid any problems with delays once you find the home of your dreams. Find a realtor who knows the area you are looking in. A good realtor will know physical problems common to the area, whether there is something that may disrupt the lifestyle you imagine, and can usually negotiate a much better deal for you. If you stay balanced in your home purchase process, you enhance the opportunity for a nicely balanced life. Leave a Reply Cancel ReplyYour email address will not be published.CommentName* Email* Website Save my name, email, and website in this browser for the next time I comment.