The perfect spot
They found the perfect neighbourhood: Old Strathcona, Edmonton. They also found a house in a perfect location, right across from a park, with a lovely view of the Edmonton river valley.
A not-so-perfect price
But the house itself wasn’t so perfect: it needed about $20,000 worth of renovations. And the sale price was on the high side of their price range.
“We looked at other homes in the neighbourhood that were cheaper and in better shape. But we kept coming back to this one. It was in the perfect spot. And when we found out there is a beer garden in the park in summer, it was a done deal!” Danielle said.
They successfully closed on the house in January and spent a month painting, installing a new kitchen floor and remodeling the master bath before they moved in.
How they made it work
So how did Danielle and Jimmy manage to buy a more expensive home and have money left over to fix it up? With direction from their mortgage broker, here’s how they did it:
- They were preapproved before starting the house hunt so they knew their price range.
- They used a high-ratio mortgage, which allowed them to put down 5% instead of 20%. Their mortgage payment is higher, but still within their monthly budget.
- Putting less money down allowed them to keep cash for the renovations.