Office: 250-833-2184


Maximize Your Buying Power in 2024

Maximize Your Buying Power in 2024

Is your goal this year to buy a home? One of the most important things to think about before you jump into purchasing real estate is how much money you have available. This is what's known as your "buying power”. Your buying power depends on multiple factors, such as your income, expenses, and financial obligations. If you think you may not have that strong of a buying power, there are things you can do to help you make your dream of owning a house come to light. Here is how:  

Improve your credit score - This is one of the most critical factors that affects your buying power when purchasing property. A higher credit score can increase the amount of money you're able to borrow and may help you secure better interest rates. To improve your credit score, pay your bills on time, keep your credit card balances low, and avoid applying for new credit unless necessary. 

Keep your debt ratios low - It’s not just about how much money you make, but also how much debt you have. Take steps to reduce your existing debt, be careful about taking on new debt, increase your income if possible and be aware of all the costs associated with homeownership. 

Save for a larger down payment - A larger down payment can increase your buying power when buying a home. The more money you have for a down payment, the less money you will need to borrow. It can also lower your monthly mortgage payments and overall interest costs. Some ways to help increase your down payment are a) set a clear savings goal b) automate your savings c) review your budget and look for areas where you can cut back d) explore first-time homebuyer programs, and e) consider investing your savings.  

Shop around for the best mortgage rates - Different lenders offer different mortgage rates, shopping around and comparing rates will help you find the best deal available.  

Consider getting a guarantor or co-borrower - A guarantor is someone who will make the mortgage payments if you are unable to do so, whereas a co-borrower is a joint borrower who shares the financial responsibility with you. 

Consider multi-family or multi-unit homes - Living with others (friends or family) to share costs or rent out part of the home to tenants for income that can be applied to your monthly mortgage payment. 

Look for homes with hidden opportunities - Not all sellers makes upgrades, repairs or even clean the space before trying to sell. Without visual appeal, these homes may not generate the same interest or buyer competition as better-maintained or recently updated homes, and may sell for a lower price. 

Find a motivated seller - There are some sellers that need to sell quickly for a variety of reasons. 

By planning ahead, you are increasing your buying power. Do you want to increase your buying power and require assistance reviewing your finances to ensure you are in the best position possible to achieve your dream of purchasing a home? Connect with me, and let’s get you on the right track together. 


No comments

Post Your Comment:

Your email will not be published
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are member’s of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.