Pink mortgages?

Pink mortgages? Really? 

This is the latest term popping up in the media to describe single women who are purchasing homes on their own, and I must say that it irritated me when I read the term. 

The last time I checked it was 2016, so how about we just call them mortgages?

Putting that aside, statistically speaking women are no longer waiting to find their significant other before making a real estate purchase. According to the March 2016 statistics from the Okanagan Mainline Real Estate Board’ Buyers Survey, 13% of home buyers were single females, compared to 9% of buyers who were single males. It appears that it is not marriage before mortgage any longer, for either gender.

As demographics change, income levels increase, and lifestyles change, more women than ever are purchasing homes on their own.  Some women are single or divorced, while others may have a partner but are choosing to buy on their own.

It is estimated that over 21% of home buyers in North America are now single women, and it could be up to 25% in Canada, although there are few statistics available. Most information on this demographic is from the observations of both mortgage brokers and real estate agents who are working with these single women buyers.

So what do women like best about home ownership? They believe that they are investing in their future by building equity and financial security. They are also very happy to no longer be paying their landlord’s mortgage payment. Being independent and having control over their environment is a key factor.

Women also seem to approach preparation for home ownership a little differently than men. They are more likely to take a long term view when purchasing real estate. They may be single today but that may not be the case in a few years, so they take that fact into consideration. 

What’s the plan for the property in the future? Should they sell or turn it into an investment property to generate future revenue? With either option, working with a professional is important to prevent the potential of large mortgage prepayment penalties for breaking a mortgage early, or to address the issue of renewing a mortgage in the future because it has since become a rental property.

It seems that women are more likely to get pre-approved for their mortgage financing in advance of home hunting. They know what they can afford first, so they are ready to move forward should they need to make a quick decision on a property.

They may also be more creative about finding solutions to getting into home ownership in the first place. They may look for homes with self-contained suites that will generate income from a mortgage helper, or they may opt to share ownership and expenses of the home with a sister. They might consider a smaller space, or try living further out of the city for affordability.

In the end, though, it doesn’t matter whether you are a single female or male, you should have a solid long-term strategy in place before you venture out to look at homes. 

Oh and mortgages are not pink, purple or blue.

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About the Author

April Dunn is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects. She has been assisting clients to purchase, refinance or renew their mortgages for over 20 years.

April has experience as a Credit Union manager, a Residential Mortgage Manager with a large financial institution and as a licensed Mortgage Broker. By specializing in Strategic Mortgage Planning she has the tools available to build a customized mortgage plan, with the features and options that meet your needs.

April provides a full range of residential and commercial mortgage financing options for clients all over the province of British Columbia and across Canada through the Mortgage Architects network.

Contact e-mail address: [email protected] or by phone at: 888-561-2679.

Website:  www.reddoormortgage.com

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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