If you are moving this spring or summer, you may be considering whether or not to purchase your very first home.
You are probably asking yourself: Am I ready to buy?
Here are some things to consider before taking the leap:
1. Are you really in a good financial place to handle such a commitment? Have you saved up the down payment? Have you paid off or in the process of regularly paying off outstanding debts, student loans or credit card debts?
2. Could you afford to pay your mortgage payments if the interest rate jumped? Currently, in Canada the interest rate for borrowing is at an all-time low. Many borrowers are paying 2% interest on their mortgages, but in the 1990’s people were paying closer to 14% interest. Although, you are able to lock in for a term where your rate remains the same, be certain you could manage an eventual price hike.
3.Have you truly considered the cost of maintenance, property taxes, insurance and utilities? Are you aware of the large one-time costs like legal fees, title insurance, home inspection, property transfer and taxes?
If you have prepared and are ready to buy your first home, here is a good website where you can learn more about how to arrange a mortgage, how to calculate what you can afford and much more at www.howrealtorshelp.ca/planning-finances.php#Buying-Step-4
Happy House Hunting! If we can be of help in your upcoming move visit www.movingagain.ca
By: Sharon Osvald and Andrew Brown
