Millennial Realtor
5 Reasons You Should Hire A Millennial Realtor
March 1, 2018
Elusive SUBJECT FREE offers
March 3, 2018

Jump in the market

How to jump in the market: First-time home buyers, parents, and Investors!

Buying your first home or investment can seem completely unrealistic. You haven’t saved 100k for a down payment. You have student loans and other normal debts, and you don’t have a lengthy employment history. Don’t be so hard on yourself! Many first-time home buyers simply cannot jump in the market without the help and support of their family (Stay tuned prospective investors and parents, I’m going to get to you).

A family member, such as a parent, can use the equity in their home as security for your home loan. Before you get excited, you need to have a conversation with the family member who is in a position to help you out. In your particular circumstances, it might be the only way to get in a home.

Many lenders have experience with these types of situations as it is more common than ever. My husband and I had to get help from family when we first moved to Canada. We had ZERO work history and credit in this country, I was still being processed through immigration, and our money was imported! Luckily, we were in good hands. Our mortgage broker met with us and our family on several occasions to get everyone on the same page. Because our townhouse was such a deal, we were able to give the equity back to our family within 2 years!

So, what are the risks for guarantors? Family members can limit their risk by only guaranteeing the loan up to a nominated amount. They are also entitled to receive statements for the loan so that they are aware of any repayment issues. If the borrower has missed any payments, the guarantor will be obligated to make these payments. You are going to be a great home owner, and never miss a payment, so you have nothing to worry about, right?! Play it safe, make sure you and your Realtor find a property that is fair to your financial situation. You can always upgrade later!

This system can also be advantageous for those of you that have an investor itch! It’s hard to sit back and watch other people get rich off simple real estate investments. If you have the equity in your home, why not?! If you start investing in real estate now, when your little Maddison is all grown up and ready to fly solo, you may have brilliantly put her in position to actually be able to live in the beautiful city she grew up in. Can you imagine if you had waited? Well done Mom and Dad.


CONTACT US: 604 330 9833
Questions? Give Us A Call