Is it time to move out of your parents place? Or finally time to get a home of your own? Find out if you're ready to buy. Or maybe renting for a bit longer may be better for you. Take the quiz to find out!

1. Should You
RENT or BUY
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

2. Should You RENT or BUY
Are you currently renting or living with your parents?
Then this quiz is for you!
Test your knowledge or learn some new information, the purpose
of the quiz is to be a “fun” introduction to the world of mortgage
financing.
Buying a home is a large investment; don’t overlook the value of
speaking to an experienced mortgage professional before you
start house hunting as they can answer any additional questions
you may have about the home financing process.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

3. Should You RENT or BUY
There are no right or wrong answers,
just 8 easy yes or no’s.
My hope is you’ll use it as a stepping-stone
to lead you towards the information you
need in order to make an educated
decision about your financial future.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

4. Should You RENT or BUY
1. Do you have a down payment available?
Yes No
The minimum downpayment required is 5% of the purchase price.
There are many downpayment sources that are acceptable and they
include savings, RRSP’s, investments, or a gift from an immediate
family member.
You may also qualify to borrow your down payment, however, that’s not
my favorite solution as that’s another payment you’re responsible for in
addition to the monthly costs of your new home.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

5. Should You RENT or BUY
2. Do you know what Mortgage Default Insurance is?
Yes No
Mortgage Default Insurance protects the lender in the event the borrower
defaults on their payments. If you purchase with less than a 20%
downpayment, your mortgage will have an insurance premium. The more you
put down, the less your premium will be.
For example, if you put down 5%, the insurance premium will be 2.75% of your
mortgage amount which can be added to your mortgage principal; whereas, a
10% down payment will result in a 2% insurance premium. There are some
exceptions to this guideline which a mortgage broker could look into for you.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

6. Should You RENT or BUY
3. Do you have documentation to prove your income?
Yes No
Whether you’re an employee, a contractor, or self-employed, you will likely be
required to provide some sort of third party income confirmation in order to
obtain mortgage financing. Acceptable documents include job letter, paystubs,
Notice of Assessments, or income tax returns.
If you cannot provide income confirmation documents, there may be a solution
called a “stated income mortgage”. The requirements under that program are
very different to that of an income-qualifying mortgage, so be sure to discuss
the guidelines with your mortgage professional before you make an offer on a
property.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

7. Should You RENT or BUY
4. Do you have good credit?
Yes No
If you want to be sure you will qualify for the best rates, a good credit rating
equates to at least 2 years positive repayment history on at least 2 separate
debts each with credit limits of $2500. That means no derogatory credit
reporting’s in the past 24 months which would include late payments,
collections or judgments.
If your credit report shows one or more issues, don’t worry too much as you still
have many options available to you. Depending on your credit profile, your
mortgage professional will be able to review all the alternatives available to
you.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

8. Should You RENT or BUY
5. Is your debt level manageable?
Yes No
Owning a property comes with more costs than a typical renter may
face. Have you accounted for that in your budget?
If you’re having trouble making more than the minimum payment on
any of your outstanding debts, you may want to consider aggressively
trying to reduce your debt level before buying a home.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

9. Should You RENT or BUY
6. Are you planning a life change soon?
Yes No
Are you contemplating a change of jobs or thinking of going back to
school? A material change in your financial profile could affect your
affordability which should be taken into consideration when looking at
the timing of purchasing a home.
And in addition to that, a property purchased in today’s market is not
expected to increase in value anytime soon so keep that in mind when
financial planning.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

10. Should You RENT or BUY
7. Are you a frequent traveller?
Yes No
If you see some long trips in your future or even a temporary move abroad, renting can
provide additional flexibility and minimal commitment as owning property is a big
responsibility.
If you choose to take off for an indeterminate amount of time, you will still be responsible
for all costs of owning your home and the repercussions for default are quite serious
should you ever fall behind in payments.
Alternatively, if you decide to rent your property out while away, be aware of the pros and
cons of that decision as you would be an absentee landlord. If you are truly unsure of
what to do going forward, start by deciding what kind of lifestyle you want to have and
how home ownership fits into that picture.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

11. Should You RENT or BUY
8. Does commitment scare you?
Yes No
When you get a mortgage, you will be asked what term you want. Will
that be for 1 year, 5 years or even up to 10 years?
If you break that term early for any reason, unless you took an open
term, you will be charged a payout penalty which could be quite
significant. For that very reason, financing a home can be much more
of a commitment than renting. In addition to that, if you change your
mind about the property you just recently bought, selling it quickly and
for a profit could prove problematic in today’s economy.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

12. Should You RENT or BUY
Buying a home can be intimidating and this quick
quiz should have provided you with some
conversation starters to take to your favorite
mortgage professional, if you haven’t already.
In addition to having a financing consultation, I
recommend meeting with an experienced real estate
professional to discuss property expectations for your
price range. And even if you’re not ready to buy yet, it’s
never a bad idea to do a little preliminary research.
Jackie
Woodward
//
Mortgage
Broker
//
TMG
780.433.8412
//
info@mortgagegirl.ca

13. Should You RENT or BUY
Jackie Woodward
Mortgage Broker
TMG & Mortgagegirl.ca
Email: info@mortgagegirl.ca
Phone: 780.433.8412
Toll Free: 1.866.932.8412
Visit: www.mortgagegirl.ca
Follow @mortgagegirlca