Telling Signs You’re Ready for Homeownership

Think you might be ready to own your own home? Here are 8 ways to tell:

1. You’re tired of paying someone else’s mortgage
2. You long for freedom
3. You’re down payment ready
4. You’re in a good spot financially
5. You’re ready to put down roots
6. Your family is growing
7. You’re not afraid of a little maintenance
8. You’re comfortable with the home buying process

1. You’re Tired of Paying Someone Else’s Mortgage

While renting may have once been an affordable alternative to homeownership, you’ve come to realize it’s costing you more in the long run. Not only are you lining someone else’s pockets, but you’re denying yourself the opportunity to build wealth.

Why pay to improve someone else’s net worth when you could be boosting your own?

2. You Long For Freedom

Money aside, renting can be incredibly restrictive. Any changes to the property are at the landlord’s discretion – even something as simple as painting a wall or hanging a picture may be a no-go. Purchase your own home, however, and you’re free to do what you like – whether it’s hanging a million pictures or parking a motorcycle in the middle of your living room!

3. You’re Down Payment Ready

Saving for a down payment is no easy feat, but you’ve managed to put away (at least) the minimum 5%. Alternatively, you may have sought down payment help via any of Canada’s first-time homebuyer programs such as the First-Time Home Buyer Incentive or the Home Buyers’ Plan.

4. You’re in a Good Spot Financially

You know in addition to your down payment, mortgage lenders will take a close look at your finances – including your income, debt, assets and credit. For this reason, you’ve worked hard to pay down your debts, improve your credit score and reduce both your Gross Debt Service and Total Debt Service ratios.

5. You’re Ready to Put Down Roots

If you have a stable job, a predictable income and plan to stay in one place for the next five years, homeownership might be the way to go. Even if you do decide to move after a few years, you’ll have built up valuable equity to put towards your next home.

6. Your Family is Growing

Marriage and children are often a benchmark for homeownership. And, with the average rent for a three-bedroom house in Edmonton coming in at approx. $1,688 monthly, investing in your OWN property makes sense. Especially since a three-bedroom home with a purchase price of $375,000 (5% down payment and 4% interest rate over a 30-year term) would cost you $1,783*. For a mere $100/month more, you’ll secure a better financial future for your family while giving them more room to grow.

*As per Financial Consumer Agency of Canada Mortgage Calculator

7. You’re Not Afraid of a Little Maintenance

Even the most low-maintenance homes (i.e. condos or townhomes) require a little looking after. Whether it’s fixing a leaky faucet or replacing an old hot water tank, you’ll need to be physically willing to do the work yourself or financially prepared to hire a professional.

8. You’re Comfortable With the Home Buying Process

Buying your first home can seem like a daunting process without the right information. That’s why you’ve taken the time to learn more about home buying, how it works, and what to expect along the way. You may have even reached out to an expert Edmonton REALTOR® for the additional advice and the guidance you need to find your new dream home.

Get started on your home buying journey today with the help of these FREE resources:

• A Step By Step Guide For Buying Your First Home – A comprehensive guide for first-buyers
• Buyer Guide – An in-depth view at the home buying process from start to finish
• Six Essential Tips That Home Buying More Affordable – Buy a home without breaking the bank!

Photo credits: shutterstock.com

Categorised in: First-Time Home Buyer

This post was written by Terry Paranych Real Estate Group