Now that you’ve started thinking about buying your first home it may be a good idea to figure out if it’s actually the right time for you. Perhaps like most Canadians, it’s always been a question of when and not if; you grew up in a large suburban house and always figured you’d have one like your parents did. Life just wouldn’t be the same without a big backyard for the kids to run around in, to host summer barbecues not to mention the pride of home ownership and the fact that you’ve always heard that it’s the best investment to make.
Then maybe it’s time to make an appointment with a bank or mortgage broker. Using information such as how much you make, plus credit history, will determine how much you’ll be able to borrow – and possibly get you a pre-approval. Want to figure out what your mortgage payments would be like? Visit Zoocasa’s Finance Center to use this handy mortgage calculator.
Have you determined that putting the money you’re currently spending on rent towards mortgage payments makes so more sense but still feel you need more information about the home buying process? Check out Zoocasa’s Before You Buy section to get the low down on home inspections, real estate professionals, moving and more.
Aside from just a financial point of view, you may want to consider the lifestyle changes of home ownership. Forget about building that deck for your backyard just yet – are you in a younger age group and value flexibility (and shudder at the thought of being house poor)? Would you have to give up your annual nice fat vacation that might otherwise go towards mortgage payments? Plus, it may be a better idea to ensure you have enough for a substantial down payment (at least 20% so that you’re paying towards the actual cost of the property versus the interest) before buying — even if it means waiting until later in life to do so.
So, remember that it’s not just about a financial planner calculating when it’s the best time for you to make a financial commitment — being the right lifestyle choice, which you’re ready to make, could be just as important.
Got more questions you’d like answered by a real estate professional? Visit Zoocasa’s Ask the Pros section and get real answers from the pros.