Busted! Don’t Believe These Home-Buying Myths!

Are you in the market for a new home? If so, you’ve probably come across some good and bad advice, and sifting through it all can be challenging, especially when some of it contradicts other advice you’ve heard.

Just because you can afford a large, expensive home doesn’t mean you should. It’s important to consider your lifestyle and how much you’re willing to spend on upkeep and repairs. A smaller, more affordable home may be a better fit for you in the long run.

To help you steer clear of these misconceptions, Cathy Roddy has debunked some of the most widely believed myths about buying a home.

Myth 1: Your only upfront cost is a down payment
Even though down payments are a significant upfront cost when buying a home, it’s not the only expense you need to be prepared for. You’ll also want to consider your closing costs. This is a set of fees added to the purchase price of your home and typically ranges from 1.5% to 4%.

Myth 2: You need a 20% down payment
Yes, providing your lender with a 20% down payment has benefits – whether it’s equity ownership or no CMHC insurance – but it’s no longer required. Canadians can make a down payment as low as 5%, and most do.

Myth 3: Being pre-qualified for a mortgage isn’t the same as a pre-approval
Although the terms sound similar, pre-qualification and pre-approval are different. Pre-qualification comes before getting pre-approved, but your approval doesn’t depend on it. Pre-qualifying lets lenders discuss your income, debt, and other financial information to estimate your potential monthly mortgage payments. A pre-approval is when a lender secures a rate and mortgage product to a borrower for 120 days. This commitment is beneficial because rates often fluctuate, while the amount agreed upon between you and the lender will stay the same. The pre-approval process allows you to narrow your home search and sets realistic expectations on what you can afford.

If you’re looking to steer clear of these myths, reach out to Cathy Roddy, a mortgage broker in Kingston, Ontario. I have been in the mortgage business since 2008. My services include first-time home buyer mortgages, mortgage renewals, mortgage refinancing, reverse mortgages, private mortgage lending, self-employed mortgage,

investment property mortgage, new Canada mortgage, mortgage pre-approval, home equity line of credit (HELOC), second mortgages, purchase plus improvements mortgage services, construction mortgage and more. I serve clients in the Kingston and the surrounding areas.

Get in touch with me today!

For a complete list of my services, please click here. If you have any questions about Cathy Roddy, I’d love to hear from you. For more information, please call me at (613) 572-1117 or email me at custombuiltmortgages@gmail.com.