4 Things You Need to Know When Interested in Buying a Home Very Early in Life
The world is a lot different than it was in your parents’ time. Young adults are more empowered than ever before, leading the charge in a number of industries (media and tech, etc.) and starting new businesses at a rapid rate. While you may be doing groundbreaking things in your professional life, you’re a little uneasy about what to do with the wealth and equity you’ve accumulated thus far. One takeaway from the generations’ past – is that there is nary a better investment than real estate. And the sooner you get into the market, the better. But alas you’re nagged by one question – how young is too young to buy a house? Here’s everything you need to know about breaking the age barrier in Okanagan area real estate.
How Old Must You be to Get a Mortgage in BC/Canada?
Generally, you have to be at least 18 to get a loan on your own. Plus, a minor can’t legally own a property in Canada until the age of 18. That’s your benchmark, so to speak. If under 18 you’ll have to go through your parent/guardian, but even if 18 or above you may want to tap into that resource. More on this below
Leveraging Your Parents’ Equity, Credit History, and Experience
If possible, getting a mortgage with your parents help can be a wise decision. You can simply leverage their equity, credit history, and experience to become the sole owner of the house. Lenders certainly prefer that route. Or, you may want want to “go in” with them on the property under a shared ownership agreement. Under the latter scenario, you still benefit from their existing equity and credit, and also get to split the downpayment and/or monthly payments. This process makes you less vulnerable to the mortgage stress test, offers flexibility, and can help your family establish generational wealth. View more on the benefits of getting a mortgage with your folks.
Consider a Condo to Start?
You may have your sights set on a house, but we also encourage you to consider a condominium. The buy-in is lower, but even if you have the money to buy a house, you will also enjoy the lower upkeep of owning a condo versus a detached property. You are in your youth, after all. You want to enjoy these all-important years, instead of being bogged down in landscaping and interior/exterior upkeep along with excessive utilities, insurance, and property tax expenses, Buy hey, we could be wrong. You know you. At the very least, have a look the benefits of buying a condo as your first real estate investment.
Get Access to Young Buyer Mortgage Programs (and a helping hand)
Not everyone has dual-income parents who have the equity and credit history to provide support for buying a home at such a young age. Should you be left out of the loop, if so? Absolutely not! There are mortgage programs available to you as a young new buyer that can get you a head start in the real estate market. However, getting access to these programs can be tricky without an assist. That’s what we’re here for. If you’re entering the BC Southern Interior market at a young age, connect to Carloni Mortgage Brokers right away. We will proffer access to new buyer incentive programs that apply to your current financial situation, and we will help you qualify. We also offer programs that can help you establish better credit history, and may even be able to put you together with private lending programs that don’t have the same stringent rules as Canada’s Big Banks.
It may seem as if the real estate world doesn’t believe in you, but we do! Contact Carloni Mortgage Brokers today with any questions you have whatsoever.
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