one of our nearby communities<\/a>).
<\/p>\n\n\n\nHere are some additional strategies you can use to comfortably afford a house in \u2013 or at least near \u2013 Toronto.<\/p>\n\n\n\n
How to afford a house in Toronto<\/h2>\n\n\n\n1. Clean up your debt<\/h3>\n\n\n\n
One of the debts that affect most Canadians is credit cards. Even though they might seem great at the beginning, the interest rates can really hurt you. That\u2019s why if you want to fulfill your dream of owning a house, you need to be responsible with your credit card debts. For instance, stop buying things that you can\u2019t afford or don\u2019t need at the moment, such as expensive electronics.
<\/p>\n\n\n\n
If you already have several credit cards and are carrying a high balance on all of them, look for a way out. Find out if you can get a personal loan or a debt settlement agreement. While you are in this process of improving your credit, just use the cards in case of an emergency. Once you clean up this debt, it will be easier to get a mortgage that you can afford.<\/p>\n\n\n\n
2. Widen your options<\/h3>\n\n\n\n
Sometimes the best way to afford a house is to lower your expectations while widening your options. We know that many people would like to have a detached home right away. But if you are a first-time homebuyer, you should look for something more modest. You can start with smaller properties such as an apartment. That way, you won\u2019t have to make big sacrifices like living away from your family and friends.
<\/p>\n\n\n\n
One of the affordable options we would recommend is condos. Toronto is filled with them, and there are a lot of benefits you can enjoy being a part of the association. For instance, you will have a smaller price tag since there are shared amenities. Some condos also offer a private gym and pool, which means you won\u2019t have to pay for an extra membership. Further, when it comes to cleaning up the snow during the winter, the condo will take care of the maintenance.<\/p>\n\n\n\n
3. Purchase a home with a friend<\/h3>\n\n\n\n
This is an amazing opportunity that most Millenials are trying nowadays since they can join forces to have a higher amount for the down payment. Maybe it is not your ideal scenario to share your home with somebody else. But, stop a second to think about it. How fun would it be to have a house with your best friend? What about living with your cousins or older siblings? The best thing about this possibility is that you won\u2019t have to cover all the expenses.
<\/p>\n\n\n\n
If you want to try out this co-ownership, first, you have to choose somebody you trust. Consider you will be living with this person for a long time, and you don\u2019t want to have any issues when it comes to making the mandatory payments. We recommend that before trying this out, you get a lawyer who has experience with this kind of purchase. That way, they can help you get a mortgage and draft the ownership contract.<\/p>\n\n\n\n
4. Homebuyer’s Plan<\/h3>\n\n\n\n
If you want to buy a house on your own but you don\u2019t have enough money to cover the down payment, you can use the Home Buyer\u2019s Plan to get the funds. This is an option that is only available to people who have been contributing to their RRSP for more than a couple of years. In case you qualify for the HBP, you could get up to $35,000. The best part is that this loan will be interest-free. Plus, you will have 15 years to repay the whole amount.
<\/p>\n\n\n\n
Now, some of you might be wondering, if this option is also available if you want to purchase with a friend. The answer is yes, you can do it as long as the other person also qualifies for an HBP. In that case, you will also have access to more funds. This means the bank could loan you up to $70,000.<\/p>\n\n\n\n
5. Borrowing from mom and dad<\/h3>\n\n\n\n
If you don\u2019t have the credit score to ask for a loan, you can always go to the bank of mom and dad. Since chances are your parents have been in the real estate market for a long time, they will have a large amount of equity. Also, their RRSP contributions can allow you to access greater funds. Remember that this is not a gift, you will still have to pay your parents back everything you are borrowing.
<\/p>\n\n\n\n
Then, you might ask, what is the advantage of borrowing from mom and dad for money. Well, the real benefit is that with this family loan, you won\u2019t have to worry about interest rates. However, you still have to make monthly payments if you don\u2019t want to get your parents into financial trouble.<\/p>\n\n\n\n
6. Rent and own<\/h3>\n\n\n\n
It may seem like a weird concept, but if you make it work, it could be the best alternative. First, you will have to find a house that is bigger than what you need. This can be expensive at the beginning, but in the long run, it will pay off. Then you can turn your basement into an apartment and rent it. If you calculate all the costs, the rent can cover your expenses. This means you will be living in your house for free. <\/p>\n","protected":false},"excerpt":{"rendered":"
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