For a long time, most Canadians followed a fairly similar route from childhood to adulthood. They were born, went to school, graduated, headed off to post-secondary or otherwise acquired job-training, found a job, got married, and bought a home. However, things have changed a lot in the last few decades. Good jobs are harder to find, homes are only getting more expensive, and the average Canadians marries in their 30s or later! Without this cultural script to follow, it’s getting more difficult to know when it’s time to make the leap from renter to homeowner. Fortunately, there are still some signs that you can pay attention to.
Ready to Settle Down.
One of the first things to consider, when deciding to become a homeowner, is whether it’s something you really want. If you enjoy the flexibility of moving around, aren’t interested in settling for a few years, and would rather spend your hard earned coin having fun than saving for a down payment, that’s okay! Homeownership isn’t for everyone. And even if homeownership is something you’re interested in, maybe right now isn’t the right time.
Stable Income and Savings.
Part of buying your dream home is having a down payment saved up. You’ll also need to prove to the bank that you have the ability to make your mortgage payments each month. In general, you’ll want about a third or less of your income going towards your mortgage. When you’re getting ready to transition from renting to owning, you’ll need to take a good, hard look at your debt and finances. If you can save your down payment and make sure your credit is in good shape, you’ll be able to prove to nearly any lender that you’re ready to be a responsible homeowner.
The Time is Right.
House prices, interest rates, and the market in general are always in flux. Sometimes it’s a buyers market, other times sellers will be benefiting from a surplus of interest and little competition. In general, most people will be looking to buy during the first six months of the year. This is especially true for families with kids who want to have everyone settled in time for school. Buyers who are willing to wait and shop around will find sellers may be willing to part with their homes for a lower price in October. Part of being ready to make the important transition from renter to owner is being patient and knowing when to act.
Are you ready to buy your first home? Have questions about homeownership? I’m here to help! Contact me today with your questions; I’d be happy to guide you step by step through the homebuying process.