If you’ve been following along with these blogs, you’ll know by now getting the best mortgage rates is only one criteria. Tight mortgage rules and high housing prices have driven people to look for new ways to buy a home. That’s why the younger set is looking to buy a house with a family member or friend in some situations.
New Arrangements
These new arrangements are becoming more common. People don’t always buy with a love interest or spouse any longer. However, it’s important to find someone you can trust because you’ll both be legally responsible for paying the mortgage.
One of the biggest advantages to buying a house with a friend is you’ll be able to afford more. It’s good to keep in mind when you’re shopping for the best mortgage rates and the house, that your combined income will also come into play. If you both have down payments, they will be considered as well.
There are many instances where people decide to buy with a friend and find they qualify for something much better than they would on their own.
The best mortgage rates and risks
Of course this kind of arrangement has some risks as well. For example, in today’s unsteady job market it’s common for one person to lose their job.. That could put the entire mortgage and house at risk.
It’s always good idea to have an agreement drawn up by an attorney. Beyond being a legal document, having this kind of agreement clearly spells out each person’s responsibilities.
As the housing market in Toronto and other areas changes continually, these types of arrangements are becoming more commonplace. Having the buying power of two people instead of one is quite often the solution.
Keep in mind we are always here to help you find the best mortgage rates.
