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How to Actually Afford to Buying a Home in London

house for sale in london ontario

Home buying hurdles exist — research, creativity, flexibility, and a Top Realtor will help you clear them.

Home buyers today face tough challenges — housing prices have soared, a dollar doesn’t go as far as it once did and rent is more expensive than the past.

How are people today making such a large purchase despite these hurdles? With more flexibility and a bit of financing creativity, today’s buyers are finding ways to achieve homeownership.

Know your options (and credit score)

The first step to knowing if you can afford a home is figuring out what financing options are available to you, including what mortgages you are eligible for and how much you need to put down upfront.  Learning the minimum required by lenders and understanding your own credit score are important starting points.

Many home shoppers aren’t sure how much they have to put down on a home, or what programs are available to help with down payments.  It is important to get educated on your lending powers so there are no confusions when the time comes to make the important decision in determining the right Condos for Sale in London Ontario or doing a general search MLS listing search for House for Sale in London Ontario.

Before buyers even start thinking about saving for a home, they should know what their financial resources are and if they’re eligible to buy.  Sometimes there are limitations – but key factors to qualification for a mortgage is income, credit scores, and current outstanding loans payments.

Buying a home is the largest purchase most people will make in their lifetime, so you should think carefully about how you’re going to finance it. Setting a budget upfront — long before you look at homes — can help you avoid falling in love with a home you can’t afford. That’s where a simple mortgage calculator like ours can help.

Make enough money to save – Homes for Sale in London Ontario

With fewer resources to pull from than their older, wealthier counterparts, renters
wanting to buy face tough financial headwinds.

While there are ways to enter into homeownership without making $75,000 in household income, it’s hard to afford to buy if you make significantly less. If you are making $35,000 per year, it is probably not feasible for you to buy in almost any market.  There are different options, such as New Townhomes in London Ontario, Buying a Condo.  Perhaps even looking to venture to the outskirts of London and look into:

Houses for Sale Woodstock
Dorchester Homes for Sale
Homes for Sale Ilderton Ontario
Homes for Sale Kilworth
Homes for Sale in Komoka
Houses for Sale Lambeth
Lucan Ontario Houses for Sale
Houses for Sale Belmont Ontario
House For Sale Strathroy
Houses for Sale St Thomas and Homes for Sale St Thomas

While households purchasing homes are more likely to have two incomes than renter households (and thus a higher median household income combined), even two-income households struggle to afford to buy in competitive markets.  Therefore, it is important that you work with a qualified top realtor that has clear understanding of the local markets.

Save Cash

One of the most daunting parts of home buying? The down payment. In fact, two-thirds of renters cite saving for a down payment as the biggest hurdle to buying a
home.  When looking to buy a 500,000 home 5% can equal to $25,000 and 20% equals to $100,000 – this can be a lot of money and it takes time to save for such amounts.  Putting less than 20% would require the home buyer to look into getting
CMHC insurance.

Know your deal breakers, but be flexible

To get into London Ontario Real Estate — even if it’s not the home of their dreams — some of today’s buyers are considering homes and locations outside of their initial wish list and getting increasingly flexible when it comes to neighborhood, house condition and even home type.

Explore different areas and different type of builds.  It is important to take babysits when options are limited.  Enter the Real Estate market and build your equity before considering Luxury Homes for Sale.  

Search for Homes in London and Area today – or call your Sales Representative at RE/MAX, Yasir Khan today for a free consultation.

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