# Buying a Condo - New Home Buyers Guidance - Bankruptcy - Prviously Owned w/ Husband



## Quagster1990 (Aug 25, 2015)

I have looked, but it's very difficult to filter my search and gain guidance where required in this personal situation. I love this site, and the help is always admirable and much notable. 

So my curren't situation, and guidance is in seeking home-buyer information. I have some further information I'll provide as I am also very open to debt arrangement guidance though I think I've got the most logical solution, anything more thrown my way is prosperous. 

I'm looking to buy a house in a year and 8 months from now.
I've went bankrupt, because of a marriage that left us both in arrears. 
I've done my term upon purchasing this house in the time/frame. 
I've been without a mortgage for over 10 years, and purchase the house over 23 years ago.
Does this term I've spent without a mortgage or a house, give me any benefit as a "First Time Home Buyer"?
The house was under my name, so it wouldn't officially be my first home, but since my debt has been cleared and I did become a nurse in the course of drastic life changes that were often hard succumbed. 
My income is great, and I've got $3,600/mos minimum after taxes coming in, no significant other and am looking for a CONDO of up to $200,000.


My General persistence of debt free life, and keeping banks satisfied says I should have a down payment of 20-30,000$. I'm not sure if this is a overshot, as I know the sooner I'm in my own place it's the most beneficial.
I've got a general idea of how I will be able to manage and create this down payment over a year and 8 months, but the sooner the better in my opinion as I'd rather be spending my money into my own property rather than helping someone else pay for their property. With this said I will detail also my current debt situation and maybe some insight would help to understand maybe what I've yet to understand about debt.

Current Debt Situations: Assets : 1,800 Liabilities : 1,800

Credit Card : $7,000 @ 20% interest. - my thought is to pay this off immediately, as it's the highest interest/debt ratio & gives flex
Student Debt : $12,700 @ 2% interest. - Very mediocre interest rate, must start paying by November. I was thinking minimum until my cc is paid off

My total outgoing money is upwards of $1,800 and I'm sure it'll be easy to get the down payment required but maybe I'm not thinking of all the details that come with buying a house. The first time I purchased a house, it was my husband who did the details and my name was the signature. I really have no awareness of the process besides what I've been reading and educated about.

I understand GIC's, Life Insurance, TFSA's, RRSP's all play in accordance to credit but I'm not sure if investing any money in these account would benefit my overall decision or if my down payment is going to be the direct decision. 

I love reading, and gaining as much information as possible. If you respond, I truly appreciate the time you took to inform me of what you know. I am trying my best to stay involved in this forum, but for now reading is my only benefit. I've learned much about my finances by using this site, and when a question I can answer comes up, I will gladly pass on my information to the next inquiry. each:


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## cashinstinct (Apr 4, 2009)

Congrats for taking back control of your financial life and your job as a nurse

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First Time Home Buyer conditions:
http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html#q3



> You will qualify for the HBTC if:
> •you or your spouse or common-law partner acquired a qualifying home; and
> •you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or* in any of the four preceding years*.


¸

When did you sell the previous home? More than 4 years ago?

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When did you bankrupt? IT has an impact on what kind of mortgage you can qualify for.

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You need to pay your credit card debt at 20% soon. You could look to refinance this debt under a lower interest rate, but it really needs to be paid before student debt.

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Where are you located? Is the $200,000 budget realistic?

I would not put money on a condo to be Blunt.

Do you have a pension plan at work? How many years of service as a nurse?

From your story, I get you are around 40-50 years old... retirement should be a priority. RRSP / TFSA / pension plan.

If you pay a reasonable rent in a place that you like, I don't see the rush at all for a condo.


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## MRT (Apr 8, 2013)

as noted by cashintinct...consider whether you wish to buy vs. rent.

Lenders tend to care about a few things if there is a previous bankruptcy on your credit report (and keep in mind it drops off after a period of time. If it still shows on your bureau, most 'A' lenders (and CMHC, if you make less than a 20% down payment) want to see:

1. The bankruptcy has been discharged, typically for at least 2 years (even if the bureau says so, the lender will likely ask for a statement of discharge to confirm)
2. The bankruptcy did not include a mortgage (the lender will likely ask for a statement of affairs to show what debts were included)
3. You have re-established credit (beyond something simple like a car loan - you say you have a credit card and student loan, so you should be fine there).

They want to know the bankruptcy was not for frivolous reasons - marriage breakdown is a common (and understandable) reason. It also sounds like you have income/debt completely under control, so really it is now just a matter of ensuring that you meet minimum credit score requirements and can come up with the required down payment. Showing that you have some savings is good, as it demonstrates a fallback position, especially if income/employment is not rock solid, but it is not critical. I would worry less about what is in RSP, TFSA, etc (for the purpose of the mortgage - for retirement, of course you want to establish these) and just ensure you have an adequate down payment. If you have at least 10% down, from your own savings, then you are almost certainly ok. 20% would be ideal, to avoid the requirement for mortgage insurance, but that decision is up to you.

I don't think you have anything to worry about, assuming you meet the above points...but definitely check your credit report to make sure everything is in order.

good luck!


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