Almost all young Canadian will go through a stage of renting. Fresh out of graduating from high school (or postsecondary), it’s nearly impossible for the average young Canadian to afford to buy their first home. They’ll either need to spend the time renting or living with their parents while they save up capital. But how do you know you’re ready to make the leap from tenant to homeowner?
Your Finances are in Order.
Student loans and even credit card debt are problems that young Canadians often have to overcome before they can purchase their first home. You’ll know you’re financially ready to take on a mortgage when you’re out of debt, you’re consistently punctual at paying your rent and bills, and you’ve managed to save up a down payment of at least 5%.
You Know Where You’d Like to Live.
A home is a huge investment! Down payments are a challenge to save up, and your mortgage needs to be paid on time. When you own property, you aren’t able to freely pick up and move the way you can when you’re a tenant. Before buying a home, you should be reasonably certain that you want to stay in the area for at least five years. That’s long enough to earn some equity and gives you the flexibility of choosing when to sell.
You’re Ready for the Responsibility.
When you own your own home, you’re fully responsible for everything on the property. If appliances stop working, it’ll be up to you to fix them. If a tree falls over in a storm, you’ll need to clean up the branches and apply to your insurance company for any damage. Owning a home is a huge responsibility, and if that’s not what you want right now, that’s okay! Home ownership isn’t for everyone, and even if it is something you want in the future, that doesn’t mean you need to be ready right now.
It’s a big decision to move from being a renter to a homeowner. There’s a lot of work and responsibility that comes with owning a house, so it’s important to carefully choose homeownership. Owning a home is also very freeing, and many young homeowners take a lot of pride in decorating their small kingdom. If you’re ready to become a homeowner, I’m here to help you achieve that goal. Contact me today at (403) 660-5319.