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As a significant financial investment, purchasing a home is difficult for many people without a mortgage, and while there are no solid guarantees that you’ll be approved for the mortgage of your choice, you can take the following steps to give yourself the best chance of making it happen:
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When purchasing a new home in Canada, there are certain things that the majority of buyers seek to fulfil before making a purchase, and while these can vary according to the year and the individual circumstances of homebuyers, many follow patterns in the market.
Perhaps somewhat surprisingly, Canada’s housing market has been quite buoyant throughout the COVID-19 pandemic, and there has been an increase in demand for buyers searching for larger, single-family homes in and around large urban centers. Hygiene, health, safety and privacy are naturally easier to control in an individual property; apartments and shared living presents far higher risks when thinking in terms of a global pandemic, and quarantine periods may be enforced for multiple apartments within larger complexes should one family (or individual) test positive for COVID-19.
In some Canadian cities, young homebuyers are finding themselves priced out of the market and unable to purchase a home without help from family members. In fact, a recent report shows that as many as 40% of parents have given their children financial assistance to buy a home. Whether this was through direct monetary help, or by giving their kids early inheritance, their willingness to assist them in buying a home, has doubtless been a lifeline for many young people who simply couldn’t get together enough funds to make a purchase alone.
If you’re looking to buy a new home, no longer are you restricted to the Big 5 as your only options for applying for a mortgage. Nowadays, alternative mortgage lenders – often referred to as ‘B’ lenders’ – are growing in popularity and the choices are wider than ever before.
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