The Changing Face of Move-Up Buyers
In the past, the term move-up buyer was often used to describe growing families needing more space. Yet in recent years, a wider range of Canadians have been "moving up" to housing that better fits their changing lifestyle needs. Married couples with grown children are cashing in on the equity of their existing homes to buy more expensive, yet smaller homes with luxury amenities and upgrades. Young professional couples without children are seeking larger homes for entertaining and setting up home offices. Another growing segment of the move-up market is multi-generational families living together who require a home that affords a combination of space and privacy.
Many homeowners are also motivated to move up because of appreciation in equity in recent years. Many are selling their existing properties and are benefiting from a hefty down payment for their new home.
If you're thinking about whether the time is right for a change, moving up begins with a careful understanding of your needs and wants:
Get an accurate picture of your financial situation.
How much more of a mortgage payment can you really afford? Factor in other debts and expenses as well as long- and short-term savings goals like postsecondary education expenses for the kids and retirement for you.
Be realistic...
...about how much you can sell your home for and how much of the proceeds you'll have available for a down payment on your next home.
Know your financing options.
Many mortgages are portable between properties, and may have a "blend and extend" provision allowing you to keep a favourable rate. Also, getting pre-approved for a mortgage means you'll know how much house you can afford.
Be specific about your needs.
If you are expecting to have more kids, be on the lookout for houses with plenty of bedrooms and areas to entertain and raise growing children. Take play and study spaces into account.
Consider the neighbourhood.
If you have kids, check out the reputation of the schools that your children would be attending. And finally, factor in the neighbourhood's proximity to work, shopping, restaurants, and other important places you'll be frequenting.
Independent Mortgage Advice Is Yours
To meet your needs, or those of friends & family,
I can...
- Shop the market to find you the best rates and mortgage products, whether you are purchasing a home, refinancing or renewing your mortgage.
- Counsel you on credit and mortgage qualifications.
- Simplify the financing process.
Paula Siemens
Mortgage Consultant
Phone: 604-351-7438
Fax: 604-648-9106
Email: psiemens@direct.ca
Web: www.yourbcmortgagebroker.com
902-777 West Broadway Ave., Vancouver, BC V5Z 4J7