Should You Rent or Buy- Take the quiz now!

1. Should YouRENT or BUYJackieWoodward//MortgageBroker//TMG780.433.8412//[email protected]

2. Should You RENT or BUYAre you currently renting or living with your parents?Then this quiz is for you!Test your knowledge or learn some new information, the purposeof the quiz is to be a fun introduction to the world of mortgagefinancing.Buying a home is a large investment; dont overlook the value ofspeaking to an experienced mortgage professional before youstart house hunting as they can answer any additional questionsyou may have about the home financing process.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 3. Should You RENT or BUYThere are no right or wrong answers,just 8 easy yes or nos.My hope is youll use it as a stepping-stoneto lead you towards the information youneed in order to make an educateddecision about your financial future.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 4. Should You RENT or BUY1. Do you have a down payment available?Yes NoThe minimum downpayment required is 5% of the purchase price.There are many downpayment sources that are acceptable and theyinclude savings, RRSPs, investments, or a gift from an immediatefamily member.You may also qualify to borrow your down payment, however, thats notmy favorite solution as thats another payment youre responsible for inaddition to the monthly costs of your new home.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 5. Should You RENT or BUY2. Do you know what Mortgage Default Insurance is?Yes NoMortgage Default Insurance protects the lender in the event the borrowerdefaults on their payments. If you purchase with less than a 20%downpayment, your mortgage will have an insurance premium. The more youput down, the less your premium will be.For example, if you put down 5%, the insurance premium will be 2.75% of yourmortgage amount which can be added to your mortgage principal; whereas, a10% down payment will result in a 2% insurance premium. There are someexceptions to this guideline which a mortgage broker could look into for you.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 6. Should You RENT or BUY3. Do you have documentation to prove your income?Yes NoWhether youre an employee, a contractor, or self-employed, you will likely berequired to provide some sort of third party income confirmation in order toobtain mortgage financing. Acceptable documents include job letter, paystubs,Notice of Assessments, or income tax returns.If you cannot provide income confirmation documents, there may be a solutioncalled a stated income mortgage. The requirements under that program arevery different to that of an income-qualifying mortgage, so be sure to discussthe guidelines with your mortgage professional before you make an offer on aproperty.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 7. Should You RENT or BUY4. Do you have good credit?Yes NoIf you want to be sure you will qualify for the best rates, a good credit ratingequates to at least 2 years positive repayment history on at least 2 separatedebts each with credit limits of $2500. That means no derogatory creditreportings in the past 24 months which would include late payments,collections or judgments.If your credit report shows one or more issues, dont worry too much as you stillhave many options available to you. Depending on your credit profile, yourmortgage professional will be able to review all the alternatives available toyou.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 8. Should You RENT or BUY5. Is your debt level manageable?Yes NoOwning a property comes with more costs than a typical renter mayface. Have you accounted for that in your budget?If youre having trouble making more than the minimum payment onany of your outstanding debts, you may want to consider aggressivelytrying to reduce your debt level before buying a home.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 9. Should You RENT or BUY6. Are you planning a life change soon?Yes NoAre you contemplating a change of jobs or thinking of going back toschool? A material change in your financial profile could affect youraffordability which should be taken into consideration when looking atthe timing of purchasing a home.And in addition to that, a property purchased in todays market is notexpected to increase in value anytime soon so keep that in mind whenfinancial planning.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 10. Should You RENT or BUY7. Are you a frequent traveller?Yes NoIf you see some long trips in your future or even a temporary move abroad, renting canprovide additional flexibility and minimal commitment as owning property is a bigresponsibility.If you choose to take off for an indeterminate amount of time, you will still be responsiblefor all costs of owning your home and the repercussions for default are quite seriousshould you ever fall behind in payments.Alternatively, if you decide to rent your property out while away, be aware of the pros andcons of that decision as you would be an absentee landlord. If you are truly unsure ofwhat to do going forward, start by deciding what kind of lifestyle you want to have andhow home ownership fits into that picture.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 11. Should You RENT or BUY8. Does commitment scare you?Yes NoWhen you get a mortgage, you will be asked what term you want. Willthat be for 1 year, 5 years or even up to 10 years?If you break that term early for any reason, unless you took an openterm, you will be charged a payout penalty which could be quitesignificant. For that very reason, financing a home can be much moreof a commitment than renting. In addition to that, if you change yourmind about the property you just recently bought, selling it quickly andfor a profit could prove problematic in todays economy.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 12. Should You RENT or BUYBuying a home can be intimidating and this quickquiz should have provided you with someconversation starters to take to your favoritemortgage professional, if you havent already.In addition to having a financing consultation, Irecommend meeting with an experienced real estateprofessional to discuss property expectations for yourprice range. And even if youre not ready to buy yet, itsnever a bad idea to do a little preliminary research.JackieWoodward//MortgageBroker//TMG780.433.8412//[email protected] 13. Should You RENT or BUYJackie WoodwardMortgage BrokerTMG & Mortgagegirl.caEmail: [email protected]: 780.433.8412Toll Free: 1.866.932.8412Visit: www.mortgagegirl.caFollow @mortgagegirlca

Should You Rent or Buy- Take the quiz now!

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