By Ah, the dream of home ownership…
For most Canadians, purchasing a home is an important rite of passage, on par with college graduation and just behind marriage and parenthood.
In fact, Canada’s home ownership rate peaked in 2006, with over sixty-eight percent of households owning their home. So, on the surface, things should be looking great for prospective buyers, right?
Well, yes and no…
Remember that twin tsunami known as the Wall Street financial meltdown/U.S. sub-prime mortgage crisis? As of late 2010, its worldwide impact has yet to be fully tallied, although we in Canada seem to have been spared the worst of its effects. Still, talk of a Canadian housing “bubble” persists, as well as a looming crisis of confidence among folks who would otherwise be moving into the housing market today.
At times like this, shouldn’t the Big Banks be your best friend?
Unfortunately, despite record low interest rates, Canada’s banks are making it more and more difficult for first-time buyers, seasonal workers, recent immigrants and others to get a piece of the housing pie. Just look at the way they treat you at the local branch, pushing you onto ATMs or the Internet to conduct your business. It’s your money, you do all the work, and yet they make a profit! If banks are this insensitive about your daily transactions, imagine what they will do when evaluating your mortgage application!
It doesn’t have to be that way. There are other avenues you can travel down, such as bridge financing solutions catering to your specific life circumstances. Maybe something a little more creative like a one to three-year Lease To Own (a.k.a. “Rent to Own”) contract may be exactly what you need to repair and/or establish your credit rating, so that you are better able to secure traditional house financing (and other types of financing) in the future.
Even if you can’t make a huge down payment or are in need of credit repair, there are specialized Lease To Own companies (familiar with your market) out there prepared to work with you to make your home ownership dreams come true.
People should be aware of legitimate, achievable financing options that do not involve banks or other “traditional” mortgage lenders.
Please note that the Canadian housing market differs from that in the United States. Canada has been spared the horror stories from down south to become the envy of real estate investors and middle-class folks worldwide. While local fluctuations (e.g. Oil and Gas boom – Calgary; Asia-Pacific cash inflows – Vancouver) do occur, there is still the continuous offer of long-term stability for people who desperately want to escape the renting “rat race”.
Quality, affordable housing leads to stability for individuals, families, and communities, and society benefits when it embraces motivated, responsible newcomers who aren’t necessarily the typical “blue-chip” client.
As Confucius (551-479 B.C. – Chinese teacher, philosopher, and political theorist) said, “The strength of a nation is derived from the integrity of it’s homes.” This was as true then as it is today. Not having massive savings or inherited wealth to draw on should not, disqualify you from realizing a dream of home ownership. There are viable options out there for you, you just need to do your proper research and due diligence in finding a solution that works for you.
“2006 Census: Changing patterns in Canadian Homeownership and Shelter Costs.” The Daily (Statistics Canada), http://www.statscan.gc.ca 04 June 08http://www.statcan.gc.ca/daily-quotidien/080604/dq080604a-eng.htm 03 Sept 10.
Article Courtesy of David Sandbrand from Lease To Own Calgary.
If a Lease To Own solution sounds interesting to you, but you have a few more questions, check out our website for more answers… who knows, maybe we can help each other out. http://www.leasetoowncalgary.com
