Q: How Do I Know If I’m Ready to Buy a Home?
Here are things to think about when deciding if you should buy a home.
How do you know when you’re ready to buy your first home? Well, there are a few things you need to ask yourself:
- Do you have stable employment? If you’ve been at your job for a long time and you’re happy with what you’re doing, these are good signs. Remember: A mortgage takes 25 to 30 years to pay off, on average.
- Do you have the savings for a down payment? If the purchase price is below $500,000, you should have at least 5% saved up to buy a home.
- Are you saving money every month? CMHC (Canadian Mortgage and Housing Corporation) says that the difference between renting and owning is often about $600 to $800 per month. If you know you’re saving that much and more, then you may be ready to buy a house.
A mortgage takes 25 to 30 years to pay off, on average.
Take a hard look at your financials. There are unforeseen expenses that come along with homeownership. Even if your monthly payments will be the same (or possibly less), that doesn’t necessarily mean you can afford it. If you do decide it may be the right time to buy, you need to talk to a mortgage broker to get qualified so you can shop within your budget.
If you have further questions about the pros and cons of homeownership, or any other real estate topic, feel free to give us a call or send an email. We can run through an analysis of what it will cost you per month to own a home. We would love to help you.