So you have decided to purchase your first home? Or maybe you are selling your existing home and are upgrading or downsizing? Whatever your circumstances, the right agent can help! Here are some first steps in the process to get ready for realizing your home ownership goals.
Is it better to buy or rent?
Big question. Generally speaking, in Nova Scotia it is often cheaper to buy than to rent. Why? Because we have an aging population, and more and more people are moving from their homes into rentals. Further adding to rental demand are the numerous people who are renting their homes as vacation homes. So there is a shortage of rental housing in many markets making buying often the best and most affordable option. In Halifax, rentals for a two bedroom apartment could be anywhere from 1500-2500 or even higher depending on the location. For this amount of money you could purchase a two story home in many areas of the city in the 250-350k price range. You can still buy a very nice place in Halifax for this kind of money.
So how much can I afford?
When calculating affordability or as we call it qualifying for a mortgage, there are many factors in determining how much you will qualify for. As a general rule, you would need at least 5% down, although if you have excellent credit, you could qualify for as little as zero down. That’s right, zero down payment still exists. You would qualify based on 32% of gross income for housing cost, which would include heating, taxes, electric etc. Note your total debt service ratio (all your debts combined) cannot exceed 42%. So here is an example.
Gross Income 80,000
Amount available for housing 25600 or 2133 monthly.
Less Taxes and Utilities example 700
Leaves 1433/month for Mortgage Servicing.
1433 per month would purchase roughly 300,000 dollar home assuming a 3.5% interest rate and a 5% down payment.
If you would like to know how much you qualify for contact Eric Meredith @ 902.830.5139 or email [email protected] or fill out the contact form below.
Why do I need an agent?
The answer is simpler than you might think. If you were facing serious charges would you walk into a courtroom without a lawyer? Simply put, a good agent can help you save money, help you navigate through all the challenges that can arise during the process, protect you financially and legally, offer you expert advice about what to look for as potential problems with a home or an area, recommend experts you can trust to do home inspections, legal work etc. In short, an experienced agent can really be your advocate, your adviser, your guide through what can be a long process. The good news is that in almost all cases, you don’t pay your agent, the seller does. So someone else is paying for you to get help, and to protect your interests. There is just no risk and lots of benefit to hiring Eric to represent you.
What is next?
If you would like to learn more about the benefits of buying vs renting, or find our how much you qualify for, or just get some more information about the process, make “The Right Move” and call Eric today. He can help! For a no hassle, no pressure, free consultation, call or text Eric @ 902.830.5139 or email [email protected] or simply fill in the contact form below.
Eric is excited to help you meet all your dreams of home ownership a reality! Hurry call now!