Marriage is such an exciting milestone that offers so much hope for the future by uniting two partners to establish roots together. I have found that it’s important to consider the following when setting out on the marriage journey to ensure your financial house remains in order, since financial strain can put a lot of pressure on relationships:
1. Your partner’s credit history/spending style. When you’re considering buying a home together, it’s important to know what you’ll be dealing with even before you decide to get preapproved for a mortgage. If you need to fix up your credit, for instance, knowing ahead of time can save lots of hassles down the road.
2. Setting up title. This may depend on your credit score as well, and also spark the conversation of your comfort level of equally being on title (meaning both borrowers will be using our first-time homebuyer’s status, provided you qualify). Another option is for one borrower to appear as a guarantor on the title (meaning the other spouse can use the first-time homebuyer status next time and have a potential future savings of $6,500).
3. Down payment. If part of your down payment is a gift, some family members don’t want to give it unconditionally. They often want something in writing to ensure their family member gets back the gifted amount if you don’t happen to live happily ever after. If this is the case, you want to discuss this in advance so it’s one less discussion to have when purchasing a home together.
4. Focusing on rates. Regardless of your marital status, rate fixation is a trap many Canadians fall into. The right mortgage terms play the biggest role in becoming mortgage-free faster. Borrowers don’t want the lowest rate but, rather, the lowest cost of borrowing and transparency. We even help you with future insurance portability (mortgage and life). Failing to discuss your options with an independent mortgage broker and looking at more than just rate can easily mean you will owe more at the end of your mortgage term.
When you work with an unbiased mortgage professional our service is free and we are here to help you throughout the ever-changing market and your lifecycles to ensure you are presented with the best possible mortgage options. Building the best foundation by thinking ahead will help you stay ahead financially and minimize financial stress on your relationship.
Do you know someone who should have a discussion with our team about purchasing a home? Please forward this along to them and introduce us in an email, so we can help them build a plan!
Angela Calla, AMP
Dominion Lending Centres-Angela Calla
Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980 Phone :
604-802-3983 Fax: 604-939-8795
Email: acalla@dominionlending.ca