Bank of Mom & Dad.... What does that really mean?
Bank of Mom and Dad…What does that really mean?
So you have sat down and worked out your budget. You have gone on MLS, talked to a realtor, played with mortgage calculators online and you know what you can afford. But when you went to get your pre-approval, you heard these words: Sorry, with the new Stress Test, you can’t qualify for that price range. While it can be frustrating, you are not alone.
In 2018, 24%* of Canadian purchasing their 1st home needed a gift from parents or other family members to qualify.
We do recommend a few guidelines before borrowing funds: 1) Make sure this is truly a gift and there isn’t a repayment expected. You will be taking on a mortgage, property taxes and utilities. You don’t need the added pressure of paying back a family member. 2) Confirm the person gifting the money truly has the money to gift. If they borrow money to lend to you, it could put them under financial strain. You want to enjoy your new home and not feel guilty for putting someone in a tight financial spot. 3) Is the money already in Canada? Moving money from over seas can take time and can come with restrictions.
Contact me today to go through the process from start to finish.