New House or new car?

The good weather if finely here and also now that phased reopening plans have started, this means that more and more people are out and about. I have noticed lately that lots and lots of people are shopping for a new vehicle, this is also coinciding with our current hot real estate market where it seems that everyone is also shopping for their first home or their dream home.

However I must caution you that as nice as those new wheels are, I would hold off on that purchase until after you have closed on your home. This is because that for every $400 in vehicle payments, it is effectively taking away $100,000 worth of purchasing power for your home. In the way that real estate has risen in the past year this is more like 200K as what was selling for 400K last year is now selling for 500K.

Finding out that your significant other is expecting does not mean that the 1st major purchase should be a mini van. Get the house sorted away first, keys in the door and closed BEFORE you even consider getting the vehicle. Just because you have received your mortgage approval does not mean that you can now put appliances on credit or finance a new vehicle. Lenders do a soft credit check prior to closing and if anything has changed prior to closing they will pull the financing. If a new vehicle is absolutely necessary prior to getting your home, buy used, buy cheap and pay cash.

Today I am thankful for another beautiful Sunday morning run on the trail, my favourite team sill in the hunt for the Stanley Cup and prospects who call on the weekend cause the banks are closed.

“Waiting is painful. Forgetting is painful. But not knowing which to do is the worst kind of suffering.” Paulo Coelho

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here