You currently own a home or have owned a home in the past and are looking for a change, what are the important things to do before you start looking and make an offer on that dream home?

things to keep in mind before taking the plunge

Get a pre-approval. While you may have qualified for a certain mortgage amount when you originally purchased your home, don’t assume that you will still qualify for that amount. There have been many government changes that have reduced the amount of mortgage that may be qualified for. Has there been a change to your job or income? Are you now working on a contract vs permanent full-time? Do you work part-time or are you self-employed? Has their been a divorce with child and or spousal support to be taken into account? Have you had a job loss and your credit has suffered? All of these things can be mitigated but may take some time or planning. It’s best to talk with a Licensed Independent Mortgage Broker before you start looking for that dream home.

Remember that a pre-approval is not a guarantee of a mortgage. The Lender also has to approve the property that you choose. If there is a job loss, change in credit (more liabilities than disclosed) or any other material change the Mortgage pre-approval may be pulled – it’s important to work with a Broker who can protect you and present you with other Lender options should there be a change in your circumstances.

  • Do you want to purchase your new home before your current home sells – we can put plans in place to make this happen – provided your income and equity in the home are sufficient.
  • How much do you need for a down payment on a new property once your current one sells, the amount of down payment available will also determine how much house you can afford.
  • Do we need to “Bridge” some funds – i.e. do you want to close on your new home a week or two before moving into your current home.
  • Which Lender and mortgage term is best for your unique situation?
  • Can we qualify for a partial exemption from the BC Property Transfer Tax if one of the parties in the transaction is a First Time Home Buyer and one isn’t.