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

Interest Rate Guarantees

Many lending institutions will guarantee you an interest rate as soon as they receive your application. The guarantee means that if mortgage rates go up, you will get the old, lower rate. If you are buying a house, or switching your mortgage (also called transferring), the guarantee can last from 60 to 120 days (2 to 4 months).

Calculating FICO Credit Scores

It is not just about making payments consistently and on time, there is a little bit more to the calculation of your credit score or beacon score as referred to in the mortgage industry. The payment history you have established only accounts for about one third of your actual beacon score. The pie chart below shows the actual breakdown of the beacon score.

Balances owing are a huge factor in the overall credit report. And, the longer you have had a good credit history will increase your score. But watch out, credit card accounts where the balances are at or above the credit limit will dramatically hurt your Beacon score.

Deciding what you Want in a New Home

It is important to clearly define what is important to you and your family to have in a new home. Most people focus on how much they can afford to spend, but there are other things to also consider.

Before shopping for that new home, write down a list of things you would like to have in your new home and divide them by essential items and nice-to-have items.

Ask yourself questions such as:

• What area of the city is desirable?
• What style of home is preferred?
• How many bedrooms are required?
• What amenities are in the area?
• Is a garage important?