In these days of low interest rates, it can be a great idea to get into the real estate market and invest in a home. Unfortunately, if you don't have the funds saved up for a down payment, it can seem like more of a burden than it's worth to buy now. While borrowing the money for your down payment might seem like the road backward, here are a few reasons you may want to consider acquiring your mortgage funds from someone else.
Taking Advantage Of Low Interest
Interest rates have been relatively low for a few years, which can be a definite financial boom when it comes to your monthly mortgage payment. Unfortunately, though, the predictions forecast that rates are on the rise and that means home ownership may be a more difficult dream in the coming years. If you're interested in getting a home at a lower price with a better interest rate, it may be worth getting a short-term loan for the long-term gain.
Begin To Invest
It will certainly improve your financial outlook if you have a financial plan and a monthly budget you stick to. Fortunately, real estate is still one of the best investments you can make in terms of helping your money grow and ensuring your future fiscal success. While RRSPs and mutual funds can be a bit topsy-turvy if you're not knowledgeable about investing, real estate can be a more reliable asset that's easier to understand.
Giving Up On Rent
When investing in a home, there are few things more rewarding than not having to pay rent anymore. Not only that, instead of effectively tossing away money each month that you'll never see again, you will be able to see your equity grow in the property you purchase. This cannot only be used as leverage for investment in another home, it also means that no matter the downturn in the market, you'll have a solid investment in something.
You may not like the idea of borrowing money for your mortgage, but it can be a good fiscal choice with interest rates on the rise and the opportunity to say goodbye to rent forever. If you're currently considering borrowing and are planning to buy a home in the short-term future, you may want to contact one of our mortgage professionals for more information.