Adam Mansbridge Mortgage

Here’s the run down on new build mortgages:

☝️ you qualify the same way you do on a resale home purchase
✌️you can select either a locked in but pricier builder’s rate OR a completion mortgage where the rate will lock in shortly before possession
🤟be prepared to shell out a minimum 5% deposit or more when signing your contract, depending on the builder

We’ll see more and more new home developments as the housing shortage is addressed. So familiarizing yourself with the options will be important!

Here’s a little debt strategy that could help boost your mortgage qualifying power.

If you’re carrying some debt and planning to purchase a home, and you’ve got an opportunity to attack some debt, this should be the order of priority:

1. Payout or down credit card or line of credit debt. When you make large payments against these balances, the way that debt is qualified in a mortgage application is immediately changed for the better. And to be honest, at 19%+, why not go after this debt first.

2. If possible, pay out short term loans like Fairstone and Easy Financial. Not because it reduces the monthly payment but because having those paid off paints a nicer picture for mortgage lenders.

3. Lastly, tackle any other debts if you’re able. Large payments against auto loans do not reduce the monthly payment. And honestly, who would want to extend the amortization on an auto loan? And student loans normally come with low payments and low interest. If you have balances that are almost paid in full, go ahead and pay them off. But tackle the points above first.

Voila!