Competition = Low Mortgage Rates

Things to Consider When Building a Brand New Home

If you decide to build a brand new home instead of purchasing a re-sale, it is extremely important to carefully assess the following pros and cons before purchasing:

• You are the first occupant meaning no one else has lived in the home
• You get to decorate as you wish by selecting your colors, design features, and other various upgrades
• You are protected from construction deficiencies by Provincial Law

• The area is not established and is often still under construction causing excess traffic, noise, dust, etc.
• Landscaping, driveway paving, and other finishing touches might take extended periods of time to have completed due to other construction in the area
• The timely completion and occupancy of your new home can be delayed for any number of builder related reasons
• There are some closing costs that apply to new homes

Can I Clean-up my Credit?

If your credit history is less than perfect, you should definitely take a few small steps to improve your credit standing before applying for a mortgage.

The following steps will help you get one step closer to cleaner credit and even closer to owning that new home:

• Pay off high-interest debt before you focus on saving a down payment because there are mortgage options that allow you to buy with little or no money down.
• Pay off credit cards and get rid of any unnecessary ones to avoid over spending and unwanted debt. Try to pay with cash and do not apply for anymore credit accounts.
• Try to pay down installment loans such as vehicle payments.
• Hire a credit counselor or seek advice on managing your debt.
• Wait at least six months before applying for a mortgage if you have made a late payment in the past.
• File a short explanation letter with your lender if your credit suffers from one specific event.

Tips on Saving for a Down Payment

If saving for a down payment seems impossible, think again. The following tips will help you achieve this realistic goal:

• Set a goal by determining what you can afford to spend on a home
• Calculate how much you need to save (generally 5% of the purchase price, although more is better)
• Remember to include closing costs and other expenses related to the purchase into how much you need to save
• Be realistic and pace your savings according to your desired purchase date (e.g. If you want to purchase your home within a year, take the calculated down payment amount, add the amount for closing costs and other expenses, then divide by the number of months until the purchase date).

Don't Forget About Home Insurance

There are so many details and steps in the process when buying a new home, but do not forget about protecting your investment once the deal is done. When you go to meet with your insurance broker, take the following information with you to ensure that you get the proper insurance for your new home:

• Property appraisal
• House plans and other property details
• Past insurance history
• Personal information (such as identification, age, occupation, etc.)