Never thought I would see it in my lifetime but it has happened. The reality of all the measures the government has taken is now impacting first time home buyers and even people considering moving up to a better home.

I stress tested our area and it will take over 90 k in income with no debt to afford the most basic home in Fergus and Guelph. Well that’s a big problem because our average household income is only $70,000. A good income is around $50,000 and if you are a single income earner forget about buying here.

Honestly, what was the government thinking. There was no reason or pressing issue to bring in all these measures to stop prices from escalating in Toronto and Vancouver. Yes housing is unaffordable there because salaries have not kept pace with rising prices. So now the government is creating the exact same problem across Canada. Still globally Toronto lags other global cities at 48 around the world with Hong Kong being most expensive city to own real estate. So again WHY? Most of us could not afford to buy in Toronto and most of us don’t want to live there anyway.

Here are the statistics you won’t see. 40% of homeowners in Canada are Mortgage free. 33% of households are debt free. And only 25% of households have less than $25,000 in debt. Mortgage deliquencies have never been a problem even during 2008 meltdown. So over-extended households are a very small segment, yet governments (the worst of deficit spenders) keep sounding the alarm of high household debt. (Reminds me of the old weapons of mass destruction) Last time I checked mortgages were a good debt because there is an appreciating asset attached to it.

Most of us who own houses are fine but what are about our kids. Thanks to the government they will not be able to buy here without significant help from us.

READY TO BUY A HOME? HOW IS YOUR CREDIT? WE CAN HELP!

Purchasing a home can be a very daunting experience.  For many it feels like going back to school to educate yourself on the whole picture. Did you know your credit score has a major impact on your ability to purchase a home, and a weak beacon score can be detrimental to your future borrowings? That’s where Price Team Mortgages can help you by changing the way you handle your credit.  Do you know what affects your credit score and how to fix it? When was the last time you checked your credit score? This is where we can help, we have educated many clients on how to improve their score.

Here is a direct response from someone who approached us on our Price Team Mortgages Facebook page, as she was looking for some help with her credit. This is a great example of a client who was educating herself on a purchasing a home in an ever-changing market.

First Time Home Buyer- Age 25 – Female. Poor credit score, and lack of tradelines.

“It’s a shame they don’t teach this stuff when it counts back in high school even!! I didn’t have a clue and when I was 18 I got my hands on two credit cards and just spent frivolously while living at home with my parents. I’ve turned my position around, paid them all off and have learned the real value of money and responsibility. I’m ready to try again. You’ve really given me some helpful tips and much needed insight!”

It’s extremely important to educate yourself on your full financial picture and your credit score is the first place to look. Most feel ashamed going into their bank for help. STOP. We can help you, there’s no need to go somewhere that makes you feel intimidated or worthless. We will empower you and help carve out a strategy to get you on track and ready to purchase a home. We truly care about our clients and their future. We always do what’s right for you.

Let’s change lives together. Price Team Mortgages, now open in Guelph at 1467 Gordon St, Suite 204. Come by and say Hi!

Never Move Your Kids Again!

YES, you can purchase for 5% down. Even if you own now, you have the ability to sell and jump back into market, purchase again with the minimum down payment. Most people believe 5% down payment is limited to purchasing their first home. Not true. And with the recent government changes many people get very confused thinking bigger down payments are required.
Selling and purchasing a new home can unlock equity to pay off debt. If you are feeling under pressure financially this may be one way to get rid of high cost debt. Refinancing is another way to get access to extra cash but is limited to 80% of your property value.

And… did you know if you own a home, you can purchase a second home or a cottage for a minimum of 5% down payment. A second home could be a house for an aging parent or an adult child attending university or college. We personally purchased many years ago in London where our children were attending Fanshawe College. It was financially draining to pay out 500 per month per child for a small room in someone else’s home -especially when three were attending post secondary at once- so we decided to purchase a condo townhouse close to the college. Turned out to be a fantastic experience! Properties are quite a bit cheaper in London and we found the perfect property. If you have ever gone through moving kids into school every year, you will understand exactly why this was such a good decision. We kept the townhouse for 7 years and ended up selling for a good profit and didn’t have to move any kid again.
So, bottom line, call us for expert advice on your next purchase. We are here to help.

Scenario for Today…
Purchase Price              $250,000
5% down                           $12,500

 Mortgage amount       $237,500
CMHC Fee                       $9,500
Monthly Payment at
2.5%, 25 yr am               $1106.48