How much house Can I afford in Kelowna Real Estate? Mortgage Affordability in the Okanagan Valley

How much house Can I afford in Kelowna Real Estate? Mortgage Affordability in the Okanagan Valley

So have you been thinking about purchasing a home maybe thinking about selling and maybe moving up and maybe taking a little bit more of a mortgage out well in this video i’m going to go over the affordability how much you can afford with all the interest rate increases on what we’ve been seeing all right so this is all a rule of thumb i’m not a mortgage professional

So definitely you need to talk to your mortgage professionals about this talk to your professionals but this is just a general rule of thumb and it’s the 1 10 rule so that means for every 1 increase you see in interest rates it’s going to change your buying power of about 10 so that means if interest rate goes up one percent what you could have purchased before

For a million dollars based on what your payments were you can now only purchase for 900 000 so that is just a rough estimate of it so this is important to get into if you are looking to purchase and as we’re continuing to see interest rates increase the interest rates were increased last month and the united states just increased their interest rates again a

Couple days ago so this is a very important thing to do so if you are looking to purchase it might make more sense to purchase right now get into the market if you can afford it if you plan to ride it out for the long term i mean we’ll get into other conversations whether or not it’s a good time but there’s also rate holes what your purchasers what your bank your

Lender can offer you to allow you to hold the rate what it is today and then you get the benefit if the rates go down by the time you make your purchase you get the benefit of it but it is definitely a great situation just to really know that rule of thumb just so you don’t get caught off guard and maybe you’re starting to get pushed out of the price range where now

There’s not any homes that you’d even consider maybe you’re looking to move up and now it’s not making sense so it’s really going to adjust you and in your purchasing decision so keep in mind that one one ten rule of thumb so for every one percent increase in the interest rates it’s about a ten percent decrease in your purchasing power and if you haven’t already

Hit that like button and subscribe to the channel of livinginclona and down below if you are interested in the real estate market i do have a weekly email for market information i’m not gonna spam you you can unsubscribe at any time but sign up below i do have the links but i have some tips for you right now so i’ve got five tips for you on how you can get around

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Some of the mortgage rate increases so even though you’re getting pinched a little bit on your purchasing power and you might be able to get a little bit more room with some of these new other negotiating tips here so we’re just going to jump right into it so tip number one on ways we can maybe help you navigate around the increase in your purchasing power as rates

Continue to climb is number one is really making a larger down payment so if you’re able to put a little bit more down you can get those payments down so if you’re thinking about putting five you know ten percent down maybe it’s an opportunity where you can put fifteen or twenty percent down or talk to your family and maybe you could raise an additional cash to be

Able to put another twenty percent down so this is going to offset a little bit of the higher interest rate but it’s also maybe going to allow you to negotiate a lower interest rate based on a better overall ability to down payment and you know each lender will look at a little bit different but that is a thought and just a suggestion maybe something to look into

If you do have that ability realize not everybody does have that ability but look into it and just see if it might be an option for you people are buying and selling real estate every day here in the okanagan and if that’s you if you’re looking to hear pick up that phone give me a call i have people call me every day looking to move here to the okanagan and people

That are moving in and around the okanagan right now and so reach out give me a call and i’m happy to help you number two talk to your lender about this one but maybe you can adjust the lending terms on it so you can maybe look at an opportunity where instead of doing you know an amortization of 25 or 20 years maybe you can get a 20 a 30 year mortgage and if you

Extend the amortization period out you are stretching the periods but you’re bringing down the payments which makes it a little bit more affordable than what it would be for the 25 year or a 20. so you can help build your equity a little bit faster so number three is and talk to your lender and how your credit history really looks and if you if you don’t keep on

Tabs of what your credit history looks maybe there’s a situation where maybe there’s a mispayment or something like that maybe something’s not recording properly or maybe somebody has the similar name of you and they don’t really have the best repayment period or maybe they have a highly leveraged line of credit maybe you can pay down some of that those credit

Cards or maybe you can get some of that unreliable information on your system so learn about it make sure it’s all correct get that information from your lender just to see what is on there you can pull them uh equifax will do their own reports and so you can really actually pull your own and get your own information just to make sure it’s all accurate you just

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Want to be cautious how many times you’re pulling it because that can really affect your score the amount of inquiries and there’s a thing called soft pulls and light poles so you want to just make sure that you know the pulls that you’re doing so when you’re pulling your credit that is not hitting the system as how many pulls because that is a way you can really

Detract your score and so that’s going to take down your score and then it’s also going to have the reverse effect on your lending is what we’re trying to achieve in trying to get you a higher amount of lending possible that’ll actually kind of reduce some of the risk the lenders will take on by taking those additional pulls so just be cautious on what you’re doing

You don’t want to pull it too much but you want to make sure what’s on file is actually all incorrect and that it’s it’s indicating correctly and maybe we can pay out some of those lines of credits or something like that maybe you can factor that into your mortgage where you can get overall a better rate so number four and this might just sound you know stupid or

You know you you might be able to do it but you know obviously you still have to live but limit your spending so maybe this is a time if you are buying a house it’s expensive already and you probably you’re probably bootstrapping yourself just to get enough for your down payment just for that five percent really struggling and but it is just be really cognizant and

Uh be cautious on what you’re spending don’t go buying vehicles especially leveraging other loans that sort of thing before you close on a property so a rule number one mistake number one what you can do is actually take out a car loan right before closing on a property so limit your spending between now and when you take possession of your property and really just

Help out save your savings and just really help it area if you are going to do anything make sure it’s cash and make sure you still have enough over for all the additional costs that come with buying and selling real estate and number five is really just making sure you’re moving quickly through the process to save you the amount of money make sure you’re as soon as

Possible you know securing that rate hole so if you’re looking right now and you’re just starting your process talk to your lender right now because interest rates are on the incline it’s probably better now to secure rate today than what it will be in two months potentially so secure rate now get in that conversation and those rate holds are probably are likely

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Good for about six to eight months type of situation everybody is different but talk to your lender about that and so really just get on top of it everything as soon as possible and you can always lock in a lower rate if what’s the worst case scenario if rates do go down and you can get a better rate well then you you’re already locked in and then you can change

Your rate down the road so you have nothing to lose really in locking in today and if you don’t buy anything then you just continue on and you go on it so it’s not really an issue from that standpoint but the longer you leave it the harder it’s going to hit you all right so there’s the rules of how much you can afford with the rate increases that are happening

Right now in the real estate market right now and some of the ways you can get around it i know not everybody’s gonna be you know lucky enough to be able to get around a lot of these items here but just some items that you you can maybe hopefully help you put you ahead of the pack and really help you save some money down the road and final tip for you if you are

Looking to purchase new construction lock in your rate hold right now but you’ve got to be careful because one of the biggest issues what we’re seeing right now with new construction is the delays so keep talking to your mortgage professional and see when those days are and if there’s about a month or two window from when your rate hold ends and when you’re taking

Possession of you’re supposed to be taking possession of your new build because there’s so many supply chain disruptions what we’re seeing out there in the marketplace my last tip for you is really just get ahead of it talk to your lender see if there’s any way you can secure it for a little bit longer because of the new environment that we’re in with supply chain

And the delays in the new construction so if you are purchasing new construction the rate hold is a huge thing that’s coming into play right now so you want to make sure you’re not going to be paying what the rates are you know four months from now and you can secure in what rates are at today you

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How much house Can I afford in Kelowna Real Estate? Mortgage Affordability in the Okanagan Valley By Living in Kelowna BC