Buying a new car or your first home, what makes the most sense?

We all need a roof over our head and some means of transportation to get us to and from work. Sometimes it can be a tough choice when there is only so much money. “Do we buy the new car or our first home?”

One of the most common roadblocks for first time home buyers in qualifying for a new home is the “auto payment”. I meet many first time home buyers who have done all the right things; paid down debt from student loans and credit cards, saved for a down payment to buy their first home and then a few months before getting ready to shop for their home they buy a new vehicle that comes with a big monthly payment for the next 5 years. The high auto payments push their debt servicing over the limit making it impossible to qualify for the mortgage. The result – they are left paying rent and a high car payment. Those new set of wheels could cost you more than you think.

https://www.youtube.com/watch?v=OetRbvBsO7o

Buying your first home is a big deal. So before you make any purchases for big ticket items like a new car – talk to your Dominion Lending Centres mortgage specialist. He or she will review your personal situation, income and expenses, and discuss your options so you know what you can afford. They will guide you through the criteria to qualify for a mortgage so you can fully understand the process and all the costs associated with buying your new home. Then you can choose the right vehicle for your budget and your needs.

Buying a new car or your first home can be an easier decision if you have the numbers in front of you to make an informed decision.

Courtesty of Pauline Tonkin, AMP – DLC Innovative Mortgage Solutions