{"id":27860,"date":"2022-09-24T09:34:54","date_gmt":"2022-09-24T13:34:54","guid":{"rendered":"https:\/\/www.moneysense.ca\/?p=271312"},"modified":"2022-09-24T09:34:54","modified_gmt":"2022-09-24T13:34:54","slug":"can-i-afford-to-buy-a-second-home","status":"publish","type":"post","link":"https:\/\/www.moneysense.ca\/spend\/real-estate\/can-i-afford-to-buy-a-second-home\/","title":{"rendered":"Can I afford to buy a second home?"},"content":{"rendered":"
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\u201cBefore you buy a second home, you want to figure out what you\u2019re trying to achieve\u2014your goals and objectives,\u201d says D\u2019Arcy Henneberry, president of online mortgage brokerage MortgagePal.<\/p>\n

Each lender has its own mortgage qualifying criteria, including how they look at your income and debt obligations, he says, so your first step should be speaking to a mortgage broker or financial advisor about your needs and financial situation.<\/p>\n

That said, when it comes to affording a second home, here are the general rules and requirements to keep in mind.<\/p>\n

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Can I afford to buy a second home?<\/h2>\n

Before you decide to buy a second home, there are several things to consider. Note that a second home is one that you or a relative will occupy; the rules can differ for rental or investment properties that you will not occupy.<\/p>\n

Your income and budget<\/h3>\n

\u201cIt\u2019s important that you\u2019re able to budget appropriately for the cost of the home. It needs to make sense,\u201d says Henneberry. \u201cYou need to understand the costs associated with the second home, and if it fits within your budget, based on your income.\u201d<\/p>\n

Having a steady income (from, say, a full-time job) can help with getting approved for a mortgage, but it isn\u2019t always necessary, Henneberry says.<\/p>\n

Individuals who are self-employed or on contract can be eligible for second-home mortgage financing, as long as they have \u201cconfirmable income,\u201d for example, from pay stubs or a notice of assessment<\/a> from the Canada Revenue Agency. For individuals whose income fluctuates, some lenders will use their average income from the last two years. What matters is having proof of enough income to cover mortgage carrying costs.<\/p>\n

\u201cAffording a mortgage doesn\u2019t mean you qualify for a mortgage. And qualifying for a mortgage doesn\u2019t mean you can afford a mortgage,\u201d says Henneberry. \u201cWe have a number of clients who are multi-million-dollar net-worth clients who don\u2019t qualify for a mortgage, because they don\u2019t have any cash flow that\u2019s usable from an income perspective for mortgage financing.\u201d<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cBefore you buy a second home, you want to figure out what you\u2019re trying to achieve\u2014your goals and objectives,\u201d says D\u2019Arcy Henneberry, president of online mortgage brokerage MortgagePal. Each lender has its own mortgage...<\/p>\n","protected":false},"author":1,"featured_media":27862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[10,11],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts\/27860"}],"collection":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/comments?post=27860"}],"version-history":[{"count":0,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts\/27860\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/media?parent=27860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/categories?post=27860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/tags?post=27860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}