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6 Ways You Can Enter The Canadian Housing Marketing

If you’ve been busy saving up and evaluating the money it would take for you to buy a house in Canada, you’re likely aware that it is becoming more difficult. First time home buyers are forced to find new and creative ways to enter the housing market.

Looking for a way to buy a house in Canada? Consider some of these options:

1. Family Assistance

Millennials who are fortunate enough to have family who are able to offer help for a down payment will have an easier time finding their home. According to the Wall Street Journal, many parents of millennials are refinancing their homes to get their children into the market.

Related article: How much will your current Canadian credit score affect your ability to afford a mortgage? Use our credit score mortgage affordability calculator to find out how.

2. Don’t Overlook the Fixer Upper

When the price is far lower than the neighbourhood average, it’s most likely going to be sold “as is”. This means after you buy the home, there is a lot of work that needs to be done. If you are handy or have family and friends who are, this could be a great opportunity to get into a great neighbourhood at a lower price. It’s important to get a good understanding of what the building materials will cost and how much time is going to be invested when going with this method.

3. Rent Out The Basement

Paying off your home each month can be a little easier if your home is also generating extra funds for you. If you’re home has the ability to fit a kitchen, laundry, and a bed comfortably, then this option is right for you. Obviously, you run the risk of having noisy neighbours, but at least you will be making your monthly payments with ease.

Read this CBC article to see how this 31-year-old paid off his mortgage by renting the upstairs of his house.

4. Find A Distressed Property Sale

If you conduct your house search long and hard enough, you’re bound to come across a few gems. If you’re able to take advantage of a situation where a homeowner is forced to sell, you may be able to get a great house for an amazing discount.

5. Buy Outside The Big City

Depending on your wants and needs, the bigger house you desire is more affordable out of the major city. What can buy you a 600 square foot box in the sky in the city, could score your a 2 storey steal in the next town over. Check out these 5 spots in Canada where you can buy a nice home for less than 300k.

When buying outside of the city you work in, you have to make sure the money you’re saving isn’t going to cost you in the long run. For example, property taxes in the city of Toronto are typically cheaper than Mississauga or Ajax. If you are commuting in and out of Toronto’s downtown core each month your transit costs are going to nearly quadruple as well.

6. Rent-to-Own

When you rent-to-own, you typically pay a small down payment and a slightly higher-than-average monthly rent. After a couple of years, the forced savings from the higher rent and can be used towards the purchase down payment of the unit you’re living in. In this scenario, the landlord makes money and you’re able to own the walls you live in – A win-win situation for everyone.

Should You Still Be Playing The Waiting Game?

Sure, you don’t want to pay rent for the rest of your life, but you don’t necessarily need to leap into a 25 or 30-year mortgage right away. If you still need to improve your credit score and save for a bigger down payment, you can put yourself in a better situation to get a better mortgage and rate. If you need to rent or live at home for another year, that’s okay. The more time you give yourself to read up on the market and look for your ideal home, the more likely you are going to stumble upon a perfect spot right in your price range.

Related Article: There are many advantages to entering the housing market. If you’re not ready, however, you could be making a mistake. Read our article “7 Reasons to Put Off Buying Your First Home” before you make your move.

For more ways to increase your credit score and enter the Canadian housing market, stay tuned to Refresh Financial’s Dime Turner Blog.

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I've done pay day loans in the past but didn't know a whole lot about credit until recently. So I checked into my credit score. I was very disappointed to find that I had a 0 credit score as I have never had or needed any credit cards or lines of credit. I knew I wanted to buy the house I live in so I knew work was needed, but I never thought it would be as easy as purchasing REFRESH!!! I bought it in June of this year, waited or 2 months and was approved for my first credit card. I was so excited. It gets better!!! Then I waited 5 months, and would you believe it. Only 5 months after purchasing refresh my credit score was strong enough to finally get approved for my first brand new car with no down payment, low biweekly payments, no cosigner, and no car trade in. My bank also tells me if everything stays good I will own my home within a year. After years of thinking there was no hope I am only months away from owning my home. THANKS REFRESH!!!! Please share this story with everyone you can! ”

Emily, Truro, NS