Do you know Many Canadian Renters Could Qualify for a Mortgage?
Matrix Mortgage Global – Many Canadian Renters Could Qualify for a Mortgage
While renting can be a good short-term solution, many renters dream of the day when they will one day be able to afford a home of their own. By consulting with a qualified mortgage broker, however, that day may come sooner than expected,
According to a recent report from housing research firm, Altus Group as many as 210,000 Canadian renters who are under the age of 50 could qualify for a mortgage with a federally regulated lender on a $430,000 if they were to make a 10% down payment on a 25 year insured mortgage at a 3.29% interest rate. In order to do this, however, they would still need to qualify for the current posted rate of 5.34%.
By simply having an even larger down payment, however, the number of renters in Canada that could qualify for such a mortgage almost doubles. With a 30% down payment, 390,000 renters could qualify for the very same type of home.
Additionally, with a 30% down payment, they could get an uninsured mortgage, meaning that not only would they pay less on their mortgage payments because a higher amount of the principle is paid off but they would also save on insurance premiums. If we were to include non-federally regulated lenders in the mix, then the number of Canadian renters who could qualify for mortgages would be even higher.
The current posted rate for most federally regulated lenders is slightly less than two percent higher than the so-called “special” rate.
It is clear then, that by saving longer for a home down payment, renters will be able to afford more expensive homes and/or lower the monthly amount that they will have to pay on their mortgage.
Matrix Mortgage Global can help provide renters with strategies for homeownership
If you are a renter who is looking to finally stop paying your money to someone else and invest it in a home of your own, the team at Matrix Mortgage Global can help provide you with strategies to do just that. A member of our team can sit down with you and help you determine exactly how much of a down payment you should be saving to qualify for a mortgage.
We can also help you with other strategies if you have poor credit or wish to explore alternative types of mortgages.
For help with any of your mortgage concerns, call the team at Matrix Mortgage Global at 1-877-371-5293.