Parade of Homes

649 Archibald St. | Phone (204) 237-4509 | classicfireplaces.ca Bring The Big View indoors 126 Parade of Homes FALL 2015 • Know what you can afford Sit down with mortgage specialist and make sure you truly understand what you can afford when you look at all your other expenses. "We always take a look at stress-testing our clients' household balance sheet," Schwan says. "in your existing budget, what are you paying for rent right now and when you add your utilities and everything else on to the new mortgage payment what does your budget look like? How much more is it going to be, or where is it going to sit compared to your existing budget?" • Get prequalified for a mortGaGe Not only will you know what your upper limit is, but most financial in- stitutions will allow you to hold the interest rate for 120 days. Over and above what you're pre-qualified to spend, Schwan recommends setting aside at least 10% of your income to accommodate either savings for retirement or unexpected expenses such as furnace or roof repairs. • Save the larGeSt down payment poSSible The larger the down payment, the less cash flow you'll need to service the debt, and since anything less than a 20% down payment requires mortgage insurance premiums, a larger down payment will save on those costs. Paying more upfront could shorten the life of the mort- gage, as well. Buying soLo Cont'd from page 125 "generally, the environment is ripe for all home buyers and especially for single home buyers. it's a low-rate interest rate environment. There still is opportunity to get into a new home with a 5% down payment," Schwan says. Homes are more affordable or as affordable in Manitoba as anywhere else in the country, and there are opportunities to buy a home with a rental suite to supplement a single income. if you're in the market, take Schwan's expert advice before you go shopping: Cont'd on page 136

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