I recently saw a TikTok in which the interviewer asked people how much their car payment was. All of the payments were between $1000 and $2000/month and many of those were amortized over 7 years. Here is the thing, every $500 in debt payment is roughly equal to  $100,000 in mortgage money. That’s right, a $1,500 truck payment is worth $300,000 in mortgage money. Whoa wait.... then what about rent? Yup, same thing. $1,500 in rent is worth another $300,000. Between the truck payment and rent that is $600,000 worth of mortgage money which is most likely available to you if you have a down payment.

I often hear people say "I will never be able to own a home", but in reality most just don't know HOW they will ever be able to own a home. I want to provide you a realistic step by step plan to start preparing for how you can own a home.

1. Realize that your first home IS NOT your forever home. It is a steppingstone to get you into the
market. If all you can afford is a $250,000 condo, then buy a $250,000 condo. In a few years, when the timing feels right, either sell or refinance and purchase another home.

2. Make sure your debt is UNDER CONTROL. The best way I have found to do this is to take three months of your last bank and credit card statements and take a good hard look at the income received and spending you have done. This allows you to see where you may be over spending and where you can cut back.

3. Understand how credit scores work and if you have damaged credit start fixing it right away. We all go through good times and bad times. Credit IS REPAIRABLE. It takes time, commitment and dedication, like all good things in life do. Don’t miss any more payments, even if you can only pay the minimum amount, ensure you are paying your credit cards and bills on time.

4. See a MORTGAGE BROKER and identify if you have a weakness, whether that be credit, downpayment, income, and work to STRENGTHEN YOUR POSITION.

5. Have automatic savings go into a separate account or TFSA. Even if it is $25/pay period to start, try that. If you don’t miss the money, make it $50/pay period, and gradually up it from there. Try to save $100, then $1000, then $2500. Make goals for yourself, having this financial cushion will make you feel great.

6. Don’t try and “BEAT” the market, this just delays your start. The real estate market goes up and down. Get in and get going. You need 5% down payment to buy a place. If you buy a $250,000 condo that is $12,500 down payment. You can borrow from an RRSP, withdraw savings or TFSA, get a gift from parents, sell an asset... maybe that TRUCK.

Home ownership provides housing and financial security. What if you started today?
There is a 2 bed, 1 bath $309,000 condo on the market in Courtenay right now. You need $15,450 down payment and your monthly payment will be approximately $1650/month.

There is a $200,000 1 bed 1 bath condo on the market in Courtenay right now. That is $10,000 down payment and your monthly payment will be $1050/month.

I got the idea for this article here: What is your Car payment TikTok Dealer Celebrates High Monthly
Payments on TikTok (roadandtrack.com)