No Cash? No Problem!
As you probably know, Edmonton’s real estate market is hot right now, but you can’t cash in if you don’t have a good budget. Notice that I didn’t say you need thousands of dollars. Investing without a large down payment is possible, but only if you create a budget to show mortgage lenders that you’re responsible.
First, take a moment to consider what you can afford. Typical mortgage lenders like to see a 20% down payment. In Edmonton, that can get rather expensive, depending on the size of the house and the street. You should provide as much in a down payment as possible, but keep in mind that you don’t want to completely wipe out your savings. Instead, you can consider a low-money-down or no-money-down loan. Both are great options for women just starting in the real estate business.
However, before you apply for either of these types of loan, make sure your finances are in order. Budget so that your debt-to-income ratio is as low as possible. You can do this by reducing what you spend on household items to more quickly pay off other loans you might have. Saving $100 on groceries every month means that you can pay of your car much faster! The less debt you have, the more likely you’ll be approved for a mortgage, even if you don’t have a 20% down payment.
The bottom line? Don’t let your lack of a lump sum get in your way. If you want to invest in Edmonton real estate, there are plenty of ways to do so, even if you’re not a millionaire.
Filed under: investment tips | Leave a Comment
Tags: Edmonton Real Estate Market
No Responses Yet to “No Cash? No Problem!”