Are you ready to buy a home?

Buying your first home can be an exciting experience. But if you’re like most Canadians, it’s also probably one of the biggest and most important decisions you’ll ever make. So how can you be sure if you’re ready to make the leap?

If you’re thinking about getting into the real estate market for the first time, here are five questions to ask yourself that can help you decide whether or not you’re really ready to buy your first home.

Question #1: Are you financially ready to be a homeowner?

Buying a home is a huge investment. So ask yourself: are you financially ready to not only purchase your first property, but to cover all of the expected and unexpected expenses that come along with owning a home? For example:

·      Is your Debt-to-Income (DTI) ratio lower than 36%, or at least no higher than 43%?

·      Is your credit score high enough to get approved (or pre-approved) for a mortgage?

·      Have you saved enough money for a down payment of at least 5% to 20% of the purchase price of your new home?

·      Do you have enough put aside to cover the closing costs, legal fees, title insurance cost, home inspection fees and all the other costs associated with buying a property?

·      Can you afford all the ongoing costs associated with homeownership, including home insurance, property taxes, condo fees and your monthly mortgage payments?

·      Will buying a property eat up all your savings, or do you have an emergency fund set aside in case of an unexpected job loss, big home repair or other setback?

Question #2: Are you prepared for the responsibilities of homeownership?

Owning a home can offer a great deal of financial freedom, personal satisfaction, and the flexibility to do what you want with your property. But being a homeowner also comes with a lot of duties, chores and responsibilities that the average renter never has to worry about. For instance:

·      Are you disciplined enough to make sure you never miss a mortgage payment or property tax bill?

·      Are you ready to monitor, maintain and keep your home in good condition in every season?

·      Are you prepared to take care of all the repairs, fixes and maintenance issues that will inevitably come up, from late-night plumbing disasters to a roof that suddenly decides to start leaking in the middle of a thunderstorm?

Question #3: Are you ready to stay in one place for a while?

When it comes to buying vs renting, a good rule of thumb is that buying a home usually makes sense if you intend to live in it for at least 3-5 years. So take an honest and realistic look at your personal and professional circumstances, and ask yourself:

·      How secure is your employment situation?

·      Will you need to move soon for your current career, or to take a new job?

·      What are the odds that you or a family member will experience a major life change in the not-too-distant future?

·      How comfortable are you with the idea of settling down in one place for a while?

Question #4: Do you know what kind of property you want?

When you buy a home, you’re in it for the long (or at least medium) haul. So before you make any firm decisions, consider factors like:

·      What kind of home, neighbourhood or type of property do you see yourself living in?

·      Would you prefer a condo in the trendy downtown core, or a single-family home in the suburbs?

·      How many bedrooms, bathrooms, and other features and amenities does your family need?

Question #5: Is now a good time to buy?

Lastly, homeownership isn’t a sprint as a financial investment. It’s a marathon. But there are still times when it may make more sense to take the plunge, and other circumstances when it might be a good idea to wait a little longer before setting your foot on the property ladder.

So before you begin looking for your dream home, make sure you:

·      Do your research into the current state of the real estate market in Canada, across British Columbia and in your community.

·     Take a look at a wide range of properties in your budget range.

·      And be sure to talk to a REALTOR® who specializes in your local area for advice.

In addition to guiding you through the homebuying process, a good REALTOR® can also share their expert opinion on factors like whether real estate prices are climbing or falling, what buyers and sellers are currently looking for – and what the future might hold in store for interest rates.

Any other questions?

Curious to find out if you’re ready to become a homeowner? Contact us to schedule your free consultation!