Real Estate is getting expensive all over the world, both in the United States and here where I am in Canada. Not many average Joe and Jane can afford a house now a days, many people are being price out and only the very wealthy are scooping up homes so they can become landlords.
Interest rates are going up and at the same time many people cannot qualify for a mortgage, here in Canada you will need to have 20-25% down payment, before you can qualify, if you do not have that amount for a down payment you will end up with a mortgage at a higher rate.
The gap between rich and poor is growing and unfortunately the government is not addressing this issue.
by Das Brain
StumbleUpon | Digg | Del.icio.us | Dzone | Newsvine | Spurl | Simpy | Furl | Reddit | Yahoo! MyWeb
Tags: down payment, house, housing market, interest rate, mortgage
For some people 20% is a lot to put down. There are many inscnates where the parents could help out. They can sign onto the mortgage as a guarantor. After one year they can be removed from the mortgage through a lawyer. Lenders want to see that you are good with credit prove your responsible and lenders will have no problem with you in the future. There are many times a guarantor is needed for younger professionals without any credit history. Speak to a mortgage broker they can help you. The slow way is to get a credit card from your bank and start using it. Make sure your payments are on time and in 3-6 months you will start seeing your score. Typically, you need 1 or 2 open lines of trade (credit card, line of credit, personal loan) to get a higher score. Make sure you make your credit card payments right away and try not to carry any balances over to the next month. Keep your statement balance at $0 while using your card regularly