Family & Career

Income Levels

If you have been in your current job for a while, you have a built-in advantage when the time comes to take out a loan.  This is true especially if your job is salaried, thus providing you with more-or-less steady levels of income.  If your income is largely based on commission, lenders tend to average out your commissions for two years back.  That also goes for any variable-salary jobs, such as part-time work, self-employment, overtime and special bonuses. 

If you have changed jobs in the recent past, your income will be subject to similar averaging as well.  But any hint of instability doesn’t sit well with lenders.  That’s why it’s not the best idea to quit your job and start a home-based business right before buying a house.  Make sure you qualify for a loan first, and undertake any major lifestyle changes later.  Buying a home is enough of a change to occupy all your attention all by itself anyway.. 

You can get a lot of information about what you can afford from the Canadian Mortgage and Housing Corporation.

We have mentioned more tips on dealing with your bank and acquiring mortgage in a previous chapter.

Lifestyle

When you have decided to seriously look for a new home, don’t let the current inventory of homes for sale drive all your decisions; take the time to make a list of things you must have, things you would like to have, and things that might be nice to have, in your new home.  This is important for at least two reason: Firstly, you want to make good, easy home-buying choices when the time comes to put in an offer.  Establishing a baseline of your needs now will ensure you don’t end up rushing into an unsuitable purchase, settling for less, or forgetting to ask a crucial question about your prospective dwelling.

Secondly, it’s important to keep your feet on the ground with regards to your expectations – and having everything written out will help all family members to stay on the same page.  If you had not even thought of a certain fancy feature before seeing it in a home for sale, you probably don’t really need it.  You will very rarely come across ‘must-haves’ that you haven’t even heard of before.

Once you have your list prioritized, don’t forget to include your entire family in the process – let everyone pick their top three favourites and keep them in mind when you go house-hunting.

If your job requires you to move to a new city, make sure you examine your employer’s relocation package and don’t be afraid to negotiate the terms.  Every family and every location is unique – make sure you get the deal that suits you best.  In addition, plan a timeline for the sale of your current home that’s in alignment with your moving date, according to your employment arrangements.  Make sure your Realtor® is on board with this timeline as well.

Now that you know how important your family and career are in the decision process, read about the specialties of trading up, downsizing, and other types of home trade