Rent or buy? Will I be qualified? How much money do I need to put down? Will I be accepted for house financing (Edmonton area) with bad credit? What if the market drops? These are the questions most Canadians are asking themselves.
The question Canadians should ask themselves is, “how do I put money in my pocket and build wealth with my home?” This is called Equity. Over the last 5 years, many Canadians, especially Albertans, took advantage of the market and gained over 100% in equity. That means a home 5 years ago in Edmonton that was bought at $200,000 is now worth approximately $400,000; a gain of $200,000 in equity!
Although CMHC no longer allows 100% house financing (Edmonton area), some lenders have been able to work around this with cash back mortgages, meaning you may be able to get into your dream home with as little as nothing down. Below is an illustration of what you will pay at the current market interest rate with the value of the type of home you desire